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�� VISIT US ONLINE @ DSNEWS.COM Compiled by the DS News Staff FIVE MINUTES WITH Cheryl Crawford EVP AT VRM MORTGAGE SERVICES PAGE 25 INSIDE THE JOURNAL // MOVERS & SHAKERS // ON THE WEB // THE APP SPECTRUM LAWMAKERS PRESS FOR DETAILS OF ABANDONED FORECLOSURE REVIEWS Federal regulators struck deals with 14 of the nation���s largest mortgage servicers in early January that require the servicers to collectively pay $3.6 billion directly to borrowers who had homes in foreclosure in 2009 and 2010 and provide $5.7 billion in mortgage assistance to struggling homeowners. The settlement agreements replace the Independent Foreclosure Review (IFR) initially ordered by regulators when the same 14 servicers were issued consent orders in April 2011 for deficient foreclosure processing. Officials with the Office of the Comptroller of the Currency (OCC) and the Federal Reserve say the new framework allows eligible borrowers to receive compensation more quickly than the IFR, but lawmakers have questions about the abandoned foreclosure review and the terms of the new agreements. Sen. Elizabeth Warren (D-Massachusetts) and Reps. Darrell Issa (R-California), Elijah Cummings (D-Maryland), and Maxine Waters (D-California) have asked to see the results of all reviews assessing the performance of the servicers and the independent contractors hired to review borrowers��� files. They also want to know how much each independent contractor was paid, specific tasks performed by the contractors, eligible borrowers��� demographics, and details on how the IFR was terminated and how harmed borrowers will now be compensated. In a February 13th speech at a Women in Housing and Finance luncheon, Comptroller of the Currency Thomas J. Curry addressed some of the concerns. ���While servicers had expended nearly $2 billion on the consultants��� review through November 2012, we were still not ready to compensate the first borrower,��� Curry said. ���[I]t just doesn���t make sense for these servicers to continue funneling money to consultants that could be better used to help distressed borrowers who have lost their homes. The cost of concluding these reviews would far exceed the harm that would be found.��� Curry stressed information ���suggests the cash payout alone is several times the potential payout had the reviews run their course.��� As for concerns that unharmed borrowers will be compensated, Curry said it ���overlooks the fact that each of these borrowers was part of a process that was far more deficient that any of us should be willing to accept.��� ���Each of these borrowers was part of a process that was far more deficient that any of us should be willing to accept.��� A look at facts you didn���t know you couldn���t live without Of the $10 trillion in residential mortgages outstanding as of September 2012, $1.1 trillion is delinquent, according to Ocwen Financial. top10 Take a look inside the numbers data b i t s BIGGEST ANNUAL PRICE CHANGES* Arizona20.2% Nevada15.3% Idaho14.6% California 12.6% Hawaii12.5% North Dakota 10.8% Utah10.7% Florida9.2% Wyoming 8.7% Colorado 8.3% SMALLEST ANNUAL PRICE CHANGES* Oklahoma 1.2% Iowa0.8% Connecticut 0.7% Alabama 0.5% Wisconsin 0.4% Kentucky 0.1% Pennsylvania -0.5% New Jersey -0.9% Illinois-2.7% Delaware -3.4% Source: CoreLogic Home Price Index (HPI) *Difference between December 2011 HPI and December 2012 HPI The value of mortgage servicing rights (MSRs) for the top eight servicers declined from $68 billion in Q4 2009 to $37 billion by Q4 2011, Deloitte reported. 9