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ยป VISIT US ONLINE @ DSNEWS.COM Compiled by the DS News Staff FIVE MINUTES WITH ASSISTANT VP OF REO SALES AT VERICREST FINANCIAL, INC. DENA GRIMES PAGE 23 inside the journal // movers & shakers // on the web // the app spectrum top10 INVESTORS WANTED: FHA Seeks Buyers for Distressed Loan Pools The Federal Housing When the program Administration (FHA) The program prevents expansion was first is now accepting announced in June, the FHA-insured loans applications for agency said it expected from reaching a final participation in its to sell 5,000 distressed Distressed Asset loans per quarter. foreclosure sale by Stabilization Program, Now, Galante says that allowing investors which allows investors number appears to be to purchase at-risk to purchase pools closer to 9,000 because of loans headed for of increased interest mortgages and turn foreclosure. them into performing from investors. The program is an The program aims loans. expansion of an FHA to prevent FHA-insured pilot that began in 2010. loans from reaching a The first sale of the newly expanded final foreclosure sale by allowing investors program is scheduled for September to purchase at-risk mortgages at a price 12 and will include approximately generally below the outstanding principal 9,000 loans. About 40 percent of the balance, then turn them into performing loans. government-insured mortgages up for No more than 50 percent of the loans within grabs will be designated for special a neighborhood stabilization pool can be neighborhood stabilization pools and liquidated and the properties resold as REO, concentrated in four hard-hit metro areas: according to agency guidelines. Chicago, Newark, Phoenix, and Tampa. Notes placed into a loan pool for "These markets were chosen because sale to investors are at least six months of the high concentration of FHA loans in delinquent. the pipeline for foreclosure and because The FHA servicer has exhausted each allows us to test this strategy all agency-approved loss mitigation under a variety of market conditions," options, a foreclosure proceeding has according to Carol Galante, FHA's acting been initiated, and the borrower is not in commissioner. bankruptcy. Assuming the upcoming sale is FHA says eligible investors must have successful, Galante says the agency experience in asset management and intends to look at other geographies with property management, as well as a proven significant inventories of nonperforming track record in helping seriously delinquent loans for future sales. borrowers find alternatives to foreclosure. A look at facts you didn't know you couldn't live without Global economic growth accelerated in the first three months of 2012 with first-quarter output up 2.9% from the same period last year and up 0.1% from the previous quarter, according to The Economist. Take a look inside the numbers data b i t s HIGHEST FORECLOSURE RATES IN FIRST HALF OF 2012 State Foreclosure Rate* Nevada1.76% Arizona1.73% Georgia1.60% California1.56% Florida1.55% Illinois 1.40% Michigan 1.02% Colorado 0.97% Ohio0.94% Utah 0.93% LOWEST FORECLOSURE RATES IN FIRST HALF OF 2012 Foreclosure Rate* State North Dakota 0.02% District Of Columbia 0.03% Vermont0.05% West Virginia 0.08% Maine0.09% South Dakota 0.14% Mississippi0.16% Arkansas0.17% Montana0.17% New York 0.18% Source: RealtyTrac. *Foreclosure rate based on number of housing units in state with at least one foreclosure filing recorded during the first six months of this year. The OCC reports 68.2% of HAMP modifications implemented since Q3 2009 remain current, compared with 53.4% of other mods implemented during the same period. 11