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ยป FROM THE BENCH Federal Court in Washington Dismisses Complaint Against MERS The U.S. District Court for the Western District of Washington dismissed a threecount complaint against MERSCORP Holdings, Inc. (MERS), that alleged wrongful foreclosure and violations of the state's Deed of Trust Act (DTA) and Consumer Protection Act (CPA). In the case Zalac v. CTX Mortgage Corp., the plaintiff was never foreclosed on, and so the wrongful foreclosure claim was dismissed since an element of the claim was missing: a foreclosure sale. "Washington does not recognize a claim for wrongful initiation of foreclosure proceedings. Thus, plaintiff's claim fails as a matter of law and is dismissed," Chief Judge Marsha J. Pechman wrote. Pechman also dismissed the claim accusing MERS of violating the DTA, noting, "Under Washington law, a foreclosure sale is a prerequisite to any DTA claim." As for the allegation concerning the violation of the CPA, Judge Pechman wrote, "Plaintiff's position lacks merit because it is a misapplication of the Washington State Supreme Court's decision in Bain v. Metropolitan Mortg. Group, Inc." "The court in Bain only held that characterizing MERS as the beneficiary on a deed of trust has the capacity to deceive homeowners, but held that MERS KNOW THIS At the end of February 2013, the median household income in Seattle, Washington, was $50,733, according to ZipRealty. involvement does not by itself constitute a per se violation of the CPA," Pechman explained. Pechman also said the plaintiff did not show how he was deceived by MERS. "Plaintiff does not allege any specific unfair or deceptive act by MERS . . . . Instead, plaintiff routinely received written notification regarding which entity was servicing his loan and had no communication with MERS. Plaintiff fails to make the specific allegation that he was deceived by the characterization of MERS as a beneficiary on the deed of trust," she wrote. VISIT US ONLINE @ DSNEWS.COM West Virginia rank: 33 90+ Day Delinquency Rate Foreclosure Rate January 2013 2.45% 1.73% 2.53% 2.35% 7.1% year-over-year change -3.3% -26.3% 4.2% Top County Wyoming CounTy 90+ Day Delinquency Rate Foreclosure Rate January 2013 2.94% 2.85% year ago 2.65% In a recent blog post, Redfin revealed new conventional listings have actually gone up 2 percent compared with last year, while listings for distressed properties have been reduced in half. Redfin conducted an analysis of new property listings in the first five weeks of 2013 (January 1 to February 11) compared with the same period in 2012. The Seattle-based brokerage found short sale listings decreased 54 percent from 2012, while REO listings are down by 46 percent. Overall, new listings declined 18 percent from 2012. "Prices have gone up enough to stem the tide of short sales and bank-owned homes, but not enough to bring out the pent-up supply of would-be home sellers who have been sitting out the declining market," Redfin explained. In addition, expansions to the Home Affordable Refinance Program (HARP) have allowed more underwater borrowers to stay in their homes by broadening eligibility for refinancing, according to Redfin. Certain metros far exceeded the national average in their reduction for new distressed property listings. In San Jose, California, bank-owned listings fell 69.6 percent and short sale listings plummeted 81.7 percent. San Francisco has seen new REO listings drop 69 percent and short sale listings decrease 73.8 percent. Meanwhile, Phoenix has seen new listings for REOs and short sales drop by 62.2 percent and 61.2 percent, respectively. On the other hand, non-distressed new listings surged 35 percent in Phoenix during the same time period. 7.4% year ago IN THE NEWS Redfin: New Short Sale Listings Down 54% from 2012 Unemployment Rate 2.64% year-over-year change 10.6% 8.1% Top Core-Based Statistical Area Wheeling, WV-oh 90+ Day Delinquency Rate January 2013 2.47% Foreclosure Rate 3.25% year ago 2.45% 2.48% year-over-year change 0.7% 31.0% 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 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. IN THE NEWS State Group Hosts Housing Workshops The West Virginia Fair Housing Action Network (WVFHAN) presented two free workshops in Martinsburg last month to provide information to consumers and housing professionals on fair housing and tenant rights in West Virginia. The first workshop was entitled "Tenant and Landlords: Rights and Responsibilities." It focused on the state's new landlord/tenant manual developed with the assistance of the West Virginia Office of Attorney General Civil Rights Division, West Virginia Senior Legal Aid, and other partners. It addresses evictions, leases, repairs, and other issues of concern in rental properties. The old manual had not been updated for almost 20 years. The second workshop, "Fair Housing: It's Not an Option, It's the Law," focused on the federal and state Fair Housing Acts and provided information on what constitutes discrimination and protected classes. 109