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» At the end of 2012, the volume of specially serviced CMBS loans decreased to $70.6 billion after peaking at $91.7 billion in 2010, according to the New York-based ratings agency. Fitch attributed the decrease to a significant drop in the number of loans transferred to special servicing in 2012 and the high number of loan resolutions. "Perhaps the most encouraging sign is how closely the volume of CMBS loans going into special servicing and the ones coming out are aligned now," said managing director Stephanie Petosa. "Last year saw $49.9 billion in loans transferred into special servicing and $47.1 billion coming out. This is a notable contrast from 2009, when $74.9 billion transferred in with only $8.8 billion transferring out." In 2011, $82.5 billion in loans transferred in, while $45.3 billion transferred out. While the volume of specially serviced CMBS loans decreased, the average time spent in the hands of special servicers went up. In the fourth quarter of 2012, the time spent in special servicing averaged 21 months, up from an average of 15.2 for 2010–2012. "This is partially due to resolved loans employing more complicated—and, therefore, more time-consuming—resolution strategies," Fitch explained. FROM THE BENCH Judge Rejects Wells Fargo's Bid to Have Case Dismissed The federal judge who approved last year's National Mortgage Settlement between the government and the five largest servicers turned down Wells Fargo's claim that a federal lawsuit against the bank violates settlement terms. District Judge Rosemary Collyer wrote in her opinion that Wells Fargo took "a leap of logic" in its interpretation of several settlement provisions that would bar the government from bringing certain claims against the bank. The U.S. attorney for the Southern District of New York brought a case against Wells Fargo in October 2012, claiming the bank falsely certified the credit and underwriting quality of loans to be insured by the Federal Housing Administration (FHA). According to the government's complaint, this behavior went on for more than 10 years, costing HUD hundreds of millions of dollars. Wells Fargo argued against the litigation in November, saying the bank's participation in the National Mortgage Settlement "wiped the slate clean for Wells Fargo" in terms of legal liability for its FHA portfolio except in "carefully crafted, narrow circumstances." In her opinion, Collyer noted that Wells Fargo's reasoning for dismissal stems from a provision in the settlement that the government cannot sue the bank for claims of fraudulent annual certifications concerning its compliance with HUD/FHA requirements. Collyer, however, argued that the bank's interpretation of the settlement clauses doesn't match the actual language used. "The plain language of the release governs, and it does not have the meaning ascribed to it by Wells Fargo," Collyer wrote. While the judge ruled that Wells Fargo is not protected from claims because of the settlement, she did not specifically address the New York case, instead leaving the matter to the court for the Southern District of New York. In a statement, Wells Fargo said it "respectfully disagrees with the court's interpretation of the scope of the release and is considering its options regarding appeal." The bank also noted Collyer's decision did not determine if the pending complaint contains any barred claims, saying it "[looks] forward to the resolution of that issue in the Southern District of New York upon the completion of briefing in that matter." STAT INSIGHT VISIT US ONLINE @ DSNEWS.COM North Carolina rank: 29 90+ Day Delinquency Rate Foreclosure Rate January 2013 2.90% Unemployment Rate 2.38% 9.5% year ago 3.12% 3.30% 9.6% year-over-year change -7.0% -27.8% -1.0% Top County HerTford CouNTy 90+ Day Delinquency Rate Foreclosure Rate January 2013 5.42% 4.76% year ago 5.89% 5.11% year-over-year change -8.0% -6.8% Top Core-Based Statistical Area LumBerToN, NC 90+ Day Delinquency Rate Foreclosure Rate January 2013 5.22% 3.73% year ago 6.15% 4.94% year-over-year change -15.2% -24.4% 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. North Carolina James Williamson & Associates REO Sales & Marketing, 20+Years REO Brokerage, Property Preservation 336.682.4007 or 336.655.5990 fax: 800.795.7065 james@jamesewilliamson.com MEMBER New York's share of the nation's REO inventory as of June 2012. Source: NewYorkFed.org IN THE NEWS BofA Offers Relief to 330K Homeowners Through Settlement Bank of America announced it completed or approved nearly $30 billion in relief to more than 330,000 homeowners as of the end of 2012. Examples of consumer relief provided by the Charlotte-based bank include: »» $7 billion in first-lien principal reduction, with 47,000 customers assisted 101

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