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ยป VISIT US ONLINE @ DSNEWS.COM Compiled by the DS News Staff FIVE MINUTES WITH Jim McMahan PRESIDENT OF BENCHMARK MORTGAGE PAGE 27 INSIDE THE JOURNAL // MOVERS & SHAKERS // ON THE WEB // THE APP SPECTRUM top10 CFPB SAYS NEW SERVICING RULES PROTECT HOMEOWNERS AGAINST FORECLOSURE The Consumer Financial Protection Bureau (CFPB) unveiled a new set of mortgage servicing rules to establish what the bureau calls "strong protections" for homeowners facing foreclosure. One such protection requires servicers to wait more than 120 days after a missed payment before initiating foreclosure proceedings. The rule is meant to provide homeowners more time to seek an alternative to foreclosure. The bureau also placed a restriction on dual-tracking, which means servicers can't begin the foreclosure process if a borrower has already submitted a complete application for a loan modification or another solution outside of foreclosure. The rules call for a "fair review process," mandating servicers consider all foreclosure alternatives available from mortgage owners or investors to help borrowers stay in their home. And, servicers can't steer borrowers to options that are the most financially favorable for the servicer. Protections are also established for homeowners who are facing a foreclosure sale date. If a homeowner submits a loss mitigation application more than 37 days before a scheduled sale date, the servicer must respond to the application. If an alternative to foreclosure is offered by the servicer and agreed upon by the homeowner, the servicer can't proceed with the foreclosure sale unless the borrower fails to perform his or her part of the agreement. Another foreclosure protection requires written notice from servicers notifying borrowers of their options after missing two consecutive payments. Servicers must also provide borrowers with direct access to employees who are responsible for updating their application status and ensuring borrower documents get to the correct personnel for processing. Another rule prohibits servicers from charging borrowers for force-placed insurance unless there is a reasonable basis to believe the borrower did not maintain hazard insurance. And, the servicer must also send notices before charging force-placed insurance. The new national servicing standards take effect January 2014 but do not apply to all servicers. The bureau made certain exceptions for small servicers who service 5,000 or fewer loans. The new national servicing standards take effect January 2014 but do not apply to all servicers. A look at facts you didn't know you couldn't live without The Financial Services Roundtable says the "cumulative weight of the Dodd-Frank Act will negatively impact the economy and consumers" with a projected annual cost of $14.2B. Take a look inside the numbers data b i t s ANNUAL FORECLOSURE ACTIVITY No. of Properties U.S. State Foreclosure Rate 1,836,6341.39 MOST PROPERTIES WITH FORECLOSURE FILINGS IN 2012 No. of Properties Foreclosure Rate California 319,1622.33 Florida 279,2303.11 Illinois 136,6032.58 Georgia 105,6102.58 Ohio 89,5841.75 Texas 81,4860.82 Michigan 76,7111.69 Arizona 76,4872.69 Pennsylvania 41,4610.74 Indiana State 38,7921.39 FEWEST PROPERTIES WITH FORECLOSURE FILINGS IN 2012 No. of Properties Foreclosure Rate California 319,1622.33 Florida 279,2303.11 Illinois 136,6032.58 Georgia 105,6102.58 Ohio 89,5841.75 Texas 81,4860.82 Michigan 76,7111.69 Arizona 76,4872.69 Pennsylvania 41,4610.74 Indiana 38,7921.39 Source: RealtyTrac As of Q2 2012, the dollar value of residential REO at FDIC-insured institutions was $9.5B, its lowest level since Q1 2008, according to the Deloitte Center for Financial Services. 13