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VISIT US ONLINE @ DSNEWS.COM The court approved the settlement on June 18. Under the agreement, Ralph R. Cioffi and Matthew M. Tannin were ordered to pay a total of $1.05 million in disgorgement and civil penalties. The SEC's complaint, which was first filed June 19, 2008, alleged Bear Stearns funds collapsed in June 2007 due to risky subprime mortgage-backed securities. Cioffi was the senior portfolio manager, and Tannin was a portfolio manager and COO for the failed hedge funds. According to the SEC's complaint, Cioffi and Tannin misled investors about the financial condition of the funds and the degree to which the funds had actually been invested in securities backed by subprime mortgages. The collapse of the funds was said to cause investors to lose $1.6 billion. However, in a November 2009 federal court ruling, Cioffi and Tannin were found not guilty of fraud related to investments in risky subprime mortgage pools, leading the SEC to pursue a civil case against the two managers. Cioffi and Tannin settled the SEC's charges, without admitting or denying the allegations in the complaint. Cioffi was ordered to pay $700,000 in disgorgement and a $100,000 civil penalty, and Tannin was ordered to pay $200,000 in disgorgement and a $50,000 civil penalty. As part of the settlement, the SEC also issued orders barring Cioffi and Tannin from associating with industries regulated by the SEC for periods of three years and two years, respectively. In 2008, JPMorgan Chase purchased Bear Stearns for $2 a share. Trepp Reports CMBS Delinquencies Hit All-Time High The delinquency rate on loans held in commercial mortgage-backed securities (CMBS) moved up 12 basis points in June to 10.16 percent, reaching an all-time high, according to a report from Trepp. The research firm says $59 billion in CMBS loans are currently delinquent. The delinquency rate includes loans 30 or more days delinquent or in foreclosure. In May, the rate surpassed 10 percent for the first time, reaching 10.04 percent. Prior to breaking through the 10 percent barrier, the delinquency rate was 9.80 percent in April. In June 2011, the CMBS delinquency rate stood at 9.37 percent. Trepp cited weak performance among lodging, office, and retail loans as reasons for the rise in the delinquency rate. The industrial segment, on the other hand, showed improvement in June, and delinquencies on multifamily loans remained unchanged for the month. Late last year Trepp predicted the market could see an increase in the CMBS delinquency rate of 70 basis points in the short-term. The rate has actually increased by 64 basis points since late 2011. There was one positive side to Trepp's latest report. The company noted that most of the five-year loans, which originated in 2007, were made in the first six months of that year. Now halfway into 2012, most loans from the troublesome 2007 vintage have already reached their maturity dates and will fall off over the next six months. Manus Clancy, senior managing director at Trepp, described a delinquency rate above 10 percent as "uncomfortably high" for CMBS investors. "Driving the rate up has been the fact that only 28 percent of the loans from 2007 due to mature in 2012 managed to pay off in full," Clancy said. "Now that most of the 2007 loans coming due in 2012 have passed their maturity date, the delinquency rate should start to level off soon." Based in New York, Trepp is a provider of information, analytics, and technology to the CMBS, commercial real estate, and banking markets. North Carolina rank: 25 90+ Day Foreclosure Unemployment Delinquency Rate RateRate may 2012 3.07%3.12% 9.4% year ago 3.29%2.89% 10.5% percent point change -6.8% 8.2%-10.5% Top County 90+ Day Delinquency Rate BERTIE COUNTY Foreclosure Rate may 2012 6.40%6.77% year ago 6.47%6.08% percent point change -1.0%11.3% Top Core-Based Statistical Area CHARLOTTE-GASTONIA-CONCORD, NC-SC 90+ Day Foreclosure Delinquency Rate Rate may 2012 3.42%3.98% year ago 3.66%3.70% percent point change -6.5%7.6% 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 May 2012 foreclosure rate. All figures are rounded to the nearest decimal. The unemployment rate reflects preliminary May 2012 figures released by the Bureau of Labor Statistics. All other data courtesy of Lender Processing Services. North Carolina James Williamson & Associates KNOW THIS New York's Gouverneur Savings & Loan was one of three lenders to perform "outstanding" in meeting the credit needs of its entire community, according to the OCC. REO Sales & Marketing, 20+Years REO Brokerage, Property Preservation 336.682.4007 or 336.655.5990 fax: 800.795.7065 james@jamesewilliamson.com MEMBER IN THE NEWS NCAR Allocates $50K to Foreclosure Prevention Counseling The North Carolina Association of Realtors (NCAR) has allocated a total of $50,000 to counseling agencies in the state to help homeowners in danger of foreclosure. Through a grant from the National Association of Realtors (NAR), NCAR awarded five $10,000 fellowships to counseling agencies in Boone, Greensboro, 99