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ยป second-quarter earnings report and believes "it is adequately reserved for the loans not covered by the agreement." "We have a strong and productive relationship with Fannie Mae . . . . As we work to deepen and enhance financial relationships with our clients, we will continue to focus on the production of high-quality mortgage loans," said CitiMortgage CEO Jane Fraser. Citi also said it will continue to work with Fannie Mae on the timely repurchase of any mortgages sold to the GSE that do not meet its requirements. "This resolution is an example of our desire to work together with our business partners to find common ground," said Bradley Lerman, EVP and general counsel at Fannie Mae. "Today's agreement resolves legacy repurchase issues, compensates taxpayers for losses, and allows Fannie Mae and Citi to move forward and strengthen our business relationship." rank: 49 90+ Day Delinquency Rate Foreclosure Rate May 2013 0.5% Unemployment Rate 0.8% 3.2% year ago 0.6% 1.1% 3.0% year-over-year change -12.6% -28.5% 6.7% Top County PembiNa CouNTy 90+ Day Delinquency Rate May 2013 0.7% Foreclosure Rate 1.9% year ago 1.1% 0.5% year-over-year change -38.3% 264.0% Top Core-based Statistical area JameSTowN, ND 90+ Day Delinquency Rate Foreclosure Rate May 2013 0.5% 1.2% year ago KNOW THIS 0.5% Investors are back "in a big way," especially in New York City's five boroughs, Emmett Laffey, CEO of Laffey Fine Homes International, tells RealtyTrac. rank: 30 90+ Day Delinquency Rate Foreclosure Rate May 2013 2.6% Unemployment Rate 1.9% 8.8% year ago 2.8% 3.0% 9.5% year-over-year change -10.1% -38.4% -7.4% Top County 90+ Day Delinquency Rate BerTie CouNTy Foreclosure Rate May 2013 2.8% 4.4% year ago 4.2% 6.2% year-over-year change -34.2% -29.6% Top Core-Based Statistical Area elizABeTh CiTy, NC 90+ Day Delinquency Rate Foreclosure Rate May 2013 2.7% 2.8% year ago 3.2% 1.1% year-over-year change -6.2% 12.3% note: The 90+ day delinquecy rate is the percentage of outstanding mortgage loans that are seriously delinquent. The foreclosure rate is the percentage of outstanding mortgage loans currently in foreclosure. State rank is based on the May 2013 foreclosure rate. All figures are rounded to the nearest decimal. The unemployment rate reflects preliminary May 2013 figures released by the Bureau of Labor Statistics. All other data courtesy of LPS Applied Analytics. IN THE NEWS North Carolina 3.8% year-over-year change -14.7% North Dakota -26.2% note: The 90+ day delinquecy rate is the percentage of outstanding mortgage loans that are seriously delinquent. The foreclosure rate is the percentage of outstanding mortgage loans currently in foreclosure. State rank is based on the May 2013 foreclosure rate. All figures are rounded to the nearest decimal. The unemployment rate reflects preliminary May 2013 figures released by the Bureau of Labor Statistics. All other data courtesy of LPS Applied Analytics. Two Former Mortgage Officers to Serve Jail Time for $28M Fraud A North Dakota judge sentenced two officers from an Arizona mortgage lender for their roles in a $28 million scheme to defraud North Dakota-based BNC National Bank. According to the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), Scott N. Powers, former CEO of American Mortgage Specialists, and David McMaster, a former officer of the same company, were sentenced to serve 96 and 188 months in prison, respectively. Powers and McMaster were accused of falsely representing the financial and operational condition of American Mortgage Specialists, including inflating the dollar amount of loans sold to banks and other lenders, in order to obtain funding from BNC and personal benefits for themselves. The alleged fraud resulted in a loss of more VISIT US ONLINE @ DSNEWS.COM than $28 million to BNC, which had to sell some of its assets and could not make its required dividend payments to TARP as a result. "American taxpayers invested $20 million of TARP funds in BNC to stabilize the bank, not to provide an opportunity to fund crime," said Special Inspector General Christy Romero. "SIGTARP and our law enforcement partners will bring to justice and hold accountable those who look at TARP as an opportunity to finance criminal activity." The two men pleaded guilty on October 19, 2012, to conspiracy to commit bank fraud and wire fraud affecting a financial institution. In addition to their prison terms, they were each ordered to pay a money judgment to the government of approximately $28.6 million and restitution to BNC in the same amount. Powers and McMaster were not the first officers from American Mortgage Specialists to face punishment for the alleged fraud. Lauretta Horton, formerly the mortgage lender's director of accounting, and David Kaufman, its former external auditor, were previously sentenced for their own related offenses. Ohio rank: 11 90+ Day Delinquency Rate Foreclosure Rate May 2013 2.8% Unemployment Rate 3.2% 7.0% year ago 3.2% 4.4% 7.3% year-over-year change -11.4% -26.3% -4.1% Top County MahOning COunTy 90+ Day Delinquency Rate May 2013 3.7% Foreclosure Rate 5.6% year ago 4.2% 7.4% year-over-year change -10.9% -24.4% Top Core-Based Statistical area aShTaBula, Oh 90+ Day Delinquency Rate Foreclosure Rate May 2013 3.3% 5.5% year ago 3.4% 7.0% year-over-year change -4.3% -21.0% note: The 90+ day delinquecy rate is the percentage of outstanding mortgage loans that are seriously delinquent. The foreclosure rate is the percentage of outstanding mortgage loans currently in foreclosure. State rank is based on the May 2013 foreclosure rate. All figures are rounded to the nearest decimal. The unemployment rate reflects preliminary May 2013 figures released by the Bureau of Labor Statistics. All other data courtesy of LPS Applied Analytics. 89