DSNews delivers stories, ideas, links, companies, people, events, and videos impacting the mortgage default servicing industry.
Issue link: http://digital.dsnews.com/i/112425
�� LPS Resolves ���RoboSigning��� Allegations in $127M Multistate Settlement Forty-six state attorney generals and the District of Columbia reached a settlement agreement with Florida-based Lender Processing Services, Inc., and its subsidiaries, LPS Default Solutions and DocX, to resolve allegations concerning the company���s foreclosure practices. As part of the multistate settlement, LPS agreed to pay $127 million. LPS previously resolved similar claims in Missouri, Delaware, and Colorado, leaving the company with one unresolved claim from Nevada. The claims against LPS from the state attorneys general accuse the company of ���robo-signing��� documents as well as other improper conduct related to mortgage loan default servicing. In a statement, LPS confirmed its ongoing commitment to stronger compliance and oversight of its operations. ���Today���s settlements are another major step toward putting issues related to past business practices behind us,��� said LPS president and CEO Hugh Harris. ���As LPS continues to grow and exercise its leadership in the mortgage industry, we remain committed to enhanced regulatory compliance and operational excellence, which are crucial in our changing industry.��� Florida Attorney General Pam Bondi announced her state will receive about $8.6 million of the settlement funds. In a release, the Florida AG���s office also announced the settlement requires the following, among other things: �� Prohibits LPS from engaging in the practice of surrogate signing of documents. �� Ensures that LPS has proper authority to sign documents on behalf of a servicer. �� Requires LPS to accurately identify the authority that the signer has to execute the document and where that signer works. �� Prohibits LPS from notarizing documents outside the presence of a notary and ensures that notarizations will comply with applicable laws. �� Prohibits LPS from incentivizing or promoting attorney speed or volume to the detriment of accuracy. LPS will also review documents executed between 2008 and 2010 to see if any documents require a correction. Georgia rank: 31 90+ Day Delinquency Rate Foreclosure Rate december 2012 4.14% Unemployment Rate 1.94% 8.6% year ago 4.71% 2.70% 9.4% percent point change -12.1% -28.4% -8.5% Top County Heard CounTy 90+ Day Delinquency Rate Foreclosure Rate december 2012 5.07% 4.14% year ago 5.07% 4.28% percent point change -0.0% -3.3% Top Core-Based Statistical area THomaSTon, Ga 90+ Day Delinquency Rate Foreclosure Rate december 2012 5.88% 3.41% year ago 6.58% 3.44% percent point change -10.5% -1.0% 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 December 2012 foreclosure rate. All figures are rounded to the nearest decimal. The unemployment rate reflects preliminary December 2012 figures released by the Bureau of Labor Statistics. All other data courtesy of Lender Processing Services. Georgia Nancie Lyons Realty NANCIE LYONS c: 828.361.0003 www.nancielyons.com nancie@nancielyons.com MEMBER IN THE NEWS Fitch: CMBS Delinquencies Fall Again; Georgia Remains ���Problem Spot��� The national delinquency rate for commercial mortgage-backed securities (CMBS) began the year with another decline, marking the eighth consecutive month of VISIT US ONLINE @ DSNEWS.COM decreases, according to Fitch Ratings. The rating agency, however, noted regional struggles in Georgia. ���Offsetting the positive movement in overall delinquencies is Georgia, which continues to be a problem spot,��� Fitch said. In January, the CMBS delinquency rate fell 8 basis points (bps), ending the month at 7.91 percent. January���s CMBS delinquency rate is now at the lowest level since October 2010, when the rate stood at 7.78 percent. Fitch explained resolutions in January outpaced additions to the index, with resolutions totaling $1.4 billion compared to $1.1 billion in additions. Though, January also saw $600 million in new issuance volume compared to $2.9 billion in portfolio runoff. In addition, the agency highlighted issues in Georgia, where the delinquency rate is 20 percent. The two largest loans added to the index in January���$71.1 million Millennium in Midtown and $67.7 million Southlake Mall���were based in Atlanta. Analysis from Fitch found office loans in Atlanta suffer from high loss severities as well. ���Loss severities on REO sales of Atlanta offices neared 80 percent over the last year, a stark contrast compared to most other cities,��� said Scott Pritchard, director at Fitch Ratings. For example, Fitch examined Atlanta office loans exceeding $10 million that were in REO status at the beginning of 2012. Among the loans, four totaling $88 million were disposed of and had an average loss severity of 78 percent based on the original balance. Among the different sectors, Fitch found the multifamily delinquency rate plunged 39 bps to 9.73 percent from 10.12 percent in December. The hotel delinquency rate fell 11 bps to 8.76 percent from the month before. The office sector also saw a decline and decreased to 8.33 percent from 8.41 percent. On the other hand, the retail sector spiked to 7.43 percent from 7.14 percent in December. For the industrial sector, the rate increased month-over-month to 8.69 percent from 8.61 percent. Harvard Study Examines Role of Investors in Atlanta Atlanta, one of the metros hardest hit by the foreclosure crisis, has experienced an 87