DS News - Digital Archives

» to test various document formats and provide feedback to the CFPB. "The CFPB recognizes that what seems like a good idea in theory often hits unexpected obstacles when put into full production," said Scott K. Stucky, COO for DocuTech, in a statement. "We are in a unique position to help lenders not only evaluate the disclosures from a content perspective, but to also test ease of implementation and the impact to operations." Illinois Angela Robinson REO Team Leader A Division of Elite Properties Chicago 875 N. Michigan Suite 3100 Chicago, Il 60611 312-226-9915 (c) ar@reoelite.com www.reoelite.com STAT INSIGHT IN THE NEWS New foreclosure sales in Idaho during Q3 2012. Source: RealyTrac Illinois rank: 5 90+ Day Delinquency Rate Foreclosure Rate november 2012 3.20% Unemployment Rate 5.73% 8.7% year ago 3.35% 6.93% 9.8% percent point change -4.4% -17.3% -11.2% Top County PIke CounTy 90+ Day Delinquency Rate Foreclosure Rate november 2012 2.57% 10.30% year ago 3.70% 11.65% percent point change -30.6% -11.6% Top Core-Based Statistical Area 90+ Day Delinquency Rate LInCoLn, IL Foreclosure Rate november 2012 3.65% 8.91% year ago 2.91% 14.93% percent point change 25.3% note: -40.3% 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 November 2012 foreclosure rate. All figures are rounded to the nearest decimal. The unemployment rate reflects preliminary November 2012 figures released by the Bureau of Labor Statistics. All other data courtesy of Lender Processing Services. Fay Servicing Allows Clients to Access Borrowers' Budget Analysis Fay Servicing made available the results of its in-depth Personal Budget Analysis (PBA) service to clients. Clients can access the results of the PBA through the company's browser-based reporting portal. Fay Servicing explained the PBA improves transparency and makes it easier to analyze the financial health of borrowers. To complete a PBA, borrowers must contact their single point of contact to conduct an in-depth analysis of their income and expenses. The results of the analysis will be available on a summary page, which is then sent to the borrower, and the data is made available to the client. "Fay Servicing's PBA results offer a flexible and improved tool for analyzing borrowers' spending habits and strengthens their ability to keep their homes," said Ed Fay, CEO of Fay Servicing. "It also offers a way for lenders to be more aware of their borrowers' evolving financial situations and estimate long-term profitability of their customers." The company explained PBAs are used to achieve three main objectives: to establish a trusting relationship with the borrower by forming an open line of communication and educating borrowers on sound spending practices; make Fay Servicing, its clients, and borrowers aware of borrowers' ability to pay their mortgage; and determine the borrower's desire to stay in the home. VISIT US ONLINE @ DSNEWS.COM Chicago-based Fay Servicing is a special servicer that manages distressed and at-risk residential loans. TransUnion Expects Elevated Delinquency Rate Despite Drop in Past Dues TransUnion forecasts a decline in mortgage delinquency rates for 2013, but the rate is expected to stay above 5 percent. The Chicago-based credit bureau expects the mortgage delinquency rate—measured as the ratio of borrowers 60 or more days past due—to drop to 5.06 percent by the end of 2013 from an estimated 5.32 percent at the end of 2012. "As house prices and unemployment slowly improve, TransUnion's forecast indicates that the national mortgage delinquency rate will gradually drop throughout 2013," said Tim Martin, group VP of U.S. housing in TransUnion's financial services business unit. At its peak, the mortgage delinquency rate reached 6.89 percent in the fourth quarter of 2009 after increasing for 12 straight quarters from 1.94 percent in the fourth quarter of 2006. As of the third quarter of 2012, the national mortgage delinquency rate stood at 5.41 percent, representing a 21 percent decrease from the 2009 peak. If the rate does drop to 5.06 in 2013 as TransUnion predicts, the decrease would only be a 27 percent decline from the peak and still remain above normal levels, which the bureau says ranges from 1.5 to 2 percent. "While we are encouraged by the direction of the forecast, we would have hoped for a projection that called for a more substantive drop in delinquencies. If the pace of improvement does not pick up, it will take a very long time to get back to 'normal' delinquency rates," Martin added. Performance among individual states will vary, but most states should see a decline in delinquencies. TransUnion forecasts mortgage delinquencies will drop in 34 states and the District of Columbia, with 13 states seeing increases. TransUnion expects the most substantial delinquency declines to occur in Nevada (-18.62 percent), Minnesota (-13.58 percent), California (-12.14 percent), and Arizona (-11.61 percent). States that have struggled to rebound after the mortgage crisis are also projected to 109

• Cover