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customers along with letters explaining it had overpaid. The newspaper broke the story after obtaining a copy of one of the letters; no public announcement from the company was made about the checks. The refunds have to do with Federal Housing Administration (FHA) mortgages originated from 2009 through 2011. Bank officials told the Los Angeles Times that borrowers who would have been able to get a conventional loan were instead directed toward FHA loans that require higher insurance payments. In an email, Wells Fargo spokeswoman Vickee Adams said the issues were discovered during an internal review of loans originated by Wells Fargo Financial and brokers in the wholesale channel of Wells Fargo Home Mortgage. After identifying borrowers who may have qualified for conventional loans, the bank decided to "[err] in favor of the customer" and send out refunds. Wells Fargo previously paid a combined $260 million to settle allegations from the Federal Reserve and the U.S. Justice Department that its operations put borrowers into more expensive mortgages. In reaching the settlement, Wells Fargo never admitted doing anything wrong. In addition, the U.S. government filed suit against the bank in early October, alleging inadequate underwriting on FHA loans resulted in thousands of defaults. With those troubles in the rearview and on the horizon, some might see the bank's refund initiative as a pre-emptive strike against further litigation. Indeed, the letters enclosed with the refund checks included a caveat: "You should understand that by cashing the enclosed check, you agree to release Wells Fargo … from any and all claims relating to Wells Fargo's origination of a more expensive mortgage loan than the loan for which you may have qualified." Adams did not disclose how many borrowers were offered refunds or how much the bank is refunding in total. She did, however, say the customers impacted represent less than 0.5 percent of Wells Fargo's total FHA servicing portfolio. KNOW THIS The average home has appreciated by 3.2 percent in Sacramento, according to CoreLogic. 98 Colorado rank: 46 90+ Day Delinquency Rate Foreclosure Rate september 2012 1.75% Unemployment Rate 1.36% 8.0% year ago 1.95% 1.76% 8.2% percent point change -9.9% -22.4% -2.4% Top County MonTrose CounTy 90+ Day Delinquency Rate Foreclosure Rate september 2012 2.03% 2.56% year ago 1.86% 3.47% percent point change 9.3% -26.2% Top Core-Based statistical Area MonTrose, Co 90+ Day Delinquency Rate Foreclosure Rate september 2012 2.03% 2.56% year ago 1.86% 3.47% percent point change 9.3% -26.2% note: The 90+ Day delinquecy rate is the percentage of outstanding mortgage loans that are 90plus days delinquent. The foreclosure rate is the percentage of outstanding mortgage loans currently in foreclosure. State rank is based on the September 2012 foreclosure rate. All figures are rounded to the nearest decimal. The unemployment rate reflects preliminary September 2012 figures released by the Bureau of Labor Statistics. All other data courtesy of Lender Processing Services. Colorado Re/Max Alliance & The Haas Team ZAC BROWN 303-456-7790 Direct || 303-619-4803 Cell www.zacbrownrealestate.com www.thehaasteam.com zaclbrown@aol.com IN THE NEWS LPS Settles with Colorado AG for $1.8M Lender Processing Services, Inc. (LPS), reached a settlement with Colorado Attorney General (AG) John Suthers for $1.8 million over document execution practices by LPS subsidiaries DocX, LLC, and LPS Default Solutions. About $500,000 will be used to reimburse fees and costs from the attorney general's office. Funds will go toward programs related to foreclosure prevention, loan modification, and housing. According to a release from the AG's office, some of the mortgage-related documents generated or executed by LPS subsidiaries had defects such as unauthorized signatures and improper notarizations. Information in the release alleges that between March 1, 2009, and November 1, 2009, employees and agents of DocX used "surrogate signers" or DocX employees who signed on behalf, of other DocX employees who were or had been authorized at one time to sign on behalf of certain mortgage servicers. "This settlement with LPS is part of our ongoing investigation into all facets of the foreclosure process in Colorado," said Suthers. "It is important that the foreclosure process works as intended and that borrowers and the legal system have confidence in it." Hugh Harris, LPS president and CEO said, "This settlement is another important step in our continuing efforts to resolve legal and regulatory issues related to past, discontinued document execution practices. LPS remains focused on resolving all remaining legal and regulatory challenges as expeditiously as possible, and is committed to ensuring that we continue to operate with integrity and compliance in everything we do." LPS said the settlement release the company of potential liability in Colorado concerning past practices from LPS and its subsidiaries. LOGS Network Welcomes New Member Firm Serving Colorado LOGS Network, a consortium of defaultrelated firms providing legal and outsourcing solutions for the residential mortgage and consumer credit industries, has added Janeway Law Firm, P.C., to its network. Serving the entire state of Colorado, the newest member of LOGS is a full-service law firm and a member of the Fannie Mae retained attorney network. As a womanowned business, Janeway Law Firm adds another layer of diversity to LOGS Network, which consists of 25 member firms across 30 jurisdictions. In a press statement, LOGS noted the firm's managing partner, Lynn Janeway,

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