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Pennsylvania rank: 16 90+ Day Delinquency Rate Foreclosure Rate January 2013 3.11% Unemployment Rate 3.42% 8.2% year ago 3.15% 3.44% 7.6% year-over-year change -1.3% -0.7% 7.9% Top County Monroe CounTy 90+ Day Delinquency Rate January 2013 6.26% Foreclosure Rate 13.19% year ago 6.69% 12.17% year-over-year change -6.3% 8.4% Top Core-Based Statistical Area eAST STroudSBurg, PA 90+ Day Foreclosure Delinquency Rate Rate January 2013 6.26% 13.19% year ago 6.69% 12.17% year-over-year change -6.3% 8.4% 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 January 2013 foreclosure rate. All figures are rounded to the nearest decimal. The unemployment rate reflects preliminary January 2013 figures released by the Bureau of Labor Statistics. All other data courtesy of Lender Processing Services. FROM THE BENCH A New Hurdle to Obtaining an MFR in the Western District of Pennsylvania The Mortgage Foreclosure Diversion Program model has percolated into the U.S. Bankruptcy Court for the Western District of Pennsylvania. Enacted October 1, 2012, the Loss Mitigation Program (LMP) is available to debtors with delinquent mortgages. How it works in a nutshell: »» Debtors seek admission into the LMP by filing a Request for Loss Mitigation Notice ("Notice") no later than three days before the first meeting of creditors. »» Debtors must also file a Certificate of Service and indicate on the Notice the adequate protection payments they will make during the loss mitigation period. »» Upon receipt of the Notice, lenders have 14 days to object. If no objection is filed, the bankruptcy court is authorized to issue a Loss Mitigation Order (LMO), which 104 institutes a 90-day stay (an automatic stay on top of the automatic stay) for loss mitigation to occur. »» If lenders file an objection, they must include specific grounds for why loss mitigation would be unsuccessful. Bankruptcy judges have discretion to schedule a hearing to determine if admission into the LMP is warranted. In fact, bankruptcy courts appear authorized to overrule lenders' objections sua sponte in the event the court finds the lenders' grounds unpersuasive. »» After issuance of the LMO, the following timelines go into effect: 1. Lenders must register on the Loss Mitigation web portal within 14 days of the LMO order (registration is a one-time event) and make available a complete list of all of its loss mitigation requirements (known as "Creditor's Package"). 2.Debtors must submit a complete Creditor's Package (not piecemeal) within 35 days of the LMO. 3.Lenders must acknowledge receipt of the Creditor's Package and provide contact information of designated contact agent(s) within 10 days of receipt. 4.Debtors must file a status report (containing a printout of the web portal's Account History page) within 60 days of the LMO, but only after receiving adequate input from lenders. 5. Lenders must provide a final report within 14 days prior to termination of the loss mitigation period regardless of whether an agreement has been reached. 6.The loss mitigation period expires 90 days after the date of the LMO, unless otherwise extended. Admission is available to virtually any debtors who have a mortgage securing residential real property. Bankruptcy judges will not consider motions for relief during the pendency of the loss mitigation period. Moreover, dates of confirmation hearings must also wait until expiration of the loss mitigation period. As of January 21, the Middle District has had preliminary discussions about instituting a similar program, while the Eastern District has no plans to explore one. This "From the Bench" contribution was provided by Richard M. Squire, senior attorney with Richard M. Squire & Associates, LLC in Jenkintown, Pennsylvania. IN THE NEWS ServiceLink Partners with Home CORE to Promote Homeownership ServiceLink, an end-to-end origination, servicing, and default solutions provider, partnered with Home CORE, a national network of nonprofit service organizations committed to providing homeownership opportunities to low-to-moderate-income families. The network is able to support efforts toward homeownership through down-payment assistant programs and by purchasing and rehabilitating foreclosed and condemned properties nationwide. Through the partnership, Pennsylvaniabased ServiceLink will help Home CORE reach its objective of increasing affordable homeownership opportunities by managing all of the activities needed to transition properties into move-in condition. Those activities include assisting with due diligence, coordinating and overseeing rehabilitation and repairs, providing title and closing services, and supporting the loan origination process through borrower counseling, the company stated. ServiceLink works with traditional lenders and servicing companies, as well as private equity groups, investment trusts, and large nonprofit organizations to convert their pools of real estate owned (REO) properties into lease, rental, or purchase properties. "By combining the assets and resources of more than 20 leading nonprofit organizations, we have the scale to significantly impact housing needs across the country," said Rita Sullins, Home CORE's national program director. "With that, however, come greater operational challenges in managing this large number of properties spread nationwide. ServiceLink's end-to-end capabilities make them the perfect partner to support our mission." "I believe that by partnering with Home CORE to transform large pools of REO properties into viable homes for America's low-to-moderate-income families, we will have a meaningful, positive impact on both our nation's housing market and economic recovery," said Stacey Bayley, SVP of asset management with ServiceLink.

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