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�� VISIT US ONLINE @ DSNEWS.COM After 40 years in the business, we understand climate change. The business world is constantly moving, and those who can���t keep up are at risk of being left behind. That���s where we come in. Butler & Hosch is a regional law firm that operates at the speed of business, offering our clients experience, expertise and efficiency - with the ultimate goal of exceeding your business expectations. Want to move forward? Find out more at butlerandhosch.com or contact us at oneroof@butlerandhosch.com butlerandhosch.com PRACTICE AREAS: Foreclosure, Bankruptcy, Litigation, Loss Mitigation, REO, Title, and Eviction SEVEN STATES: Florida, Georgia, Louisiana, Mississippi, North Carolina, South Carolina and Texas FITCH: RMBS DELINQUENCIES IMPROVE IN FOURTH QUARTER Serious delinquencies among loans held in U.S. residential mortgage-backed securities (RMBS) improved across all sectors in the fourth quarter of 2012, according to a new mortgage market index from Fitch Ratings. Furthermore, the agency expects RMBS delinquencies to continue declining this year. Fitch reported its 60-plus-day delinquency index stood at 28.6 percent at the end of Q 4 2012, down from 29.1 percent in Q2 2012 and 30.6 percent in Q 4 2011. According to Fitch, the improvement ���reflects positive selection in the remaining pools, loan modification efforts by servicers, and positive home price trends.��� Liquidation rates for subprime and Alt-A loans saw a modest decline in the fourth quarter due to changes in foreclosure procedures from servicers following requirements of the $25 billion national mortgage settlement, according to Fitch���s report. Loss severities on liquidated prime, subprime, and Alt-A loans improved with the increase in home prices acting as a key driver. Greater use of short sales also had a positive impact on loss severities. Fitch expects loss severities to continue to improve in 2013. ���Short sales typically provide better recoveries on distressed loans since the time to resolution is much faster than a full foreclosure and the sale does not suffer from the market stigma of being a bank-owned property,��� the ratings agency explained. The increase in short sales also helped to keep foreclosure completion rates near historic lows. Fitch���s report noted close to 60 percent of distressed loan resolutions in the fourth quarter were actually short sales. Average liquidation timelines saw the first decline since the start of the financial crisis, also supported by short sale activity, according to the ratings agency. However, average timelines for loans in the foreclosure process increased as servicers face the challenge of implementing new procedural requirements from the national mortgage settlement, Fitch noted. From the start of 2012 to the beginning of the fourth quarter, national home prices rose by about MOVING BUSINESS FORWARD. 5 percent, with California seeing appreciation of more than 7 percent, according to Fitch. ���Helping the price increase was low mortgage rates and a lower percentage of distressed property liquidations,��� Fitch stated. While prices seem to be improving, Fitch believes prices may be slightly above sustainable levels with certain regions at risk of declines. ���The Northeast in particular has not yet seen the significant declines seen in the rest of the country and as such is vulnerable to further home price declines,��� said Grant Bailey, managing director at Fitch. The agency���s report showed the overall balance of outstanding loans in RMBS pools slipped below $1 trillion in the fourth quarter of 2012 for the first time since 2004. KNOW THIS The GSEs and Ginnie Mae issued $1.2 trillion in mortgage-backed securities from January to September 2012, compared to private-label issuance of $10.3 billion. 29