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» IN THE NEWS California rank: 38 90+ Day Delinquency Rate Foreclosure Rate May 2013 2.5% Unemployment Rate 1.3% 8.6% year ago 3.3% 2.9% 10.7% year-over-year change -26.1% -54.7% -19.6% Top County Sierra CounTy 90+ Day Delinquency Rate Foreclosure Rate May 2013 2.4% 2.6% year ago 3.6% 3.4% year-over-year change -33.5% -24.8% Top Core-Based Statistical area SuSanville, Ca 90+ Day Delinquency Rate Foreclosure Rate May 2013 3.1% 2.5% year ago 2.8% 3.5% year-over-year change 10.7% -26.7% 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. REO AND SHORT SALES SPECIALIST SOLD GARY CARTER 20955 Pathfinder Road, Suite 100 Diamond Bar, CA 91765 d: 909-860-5540, c: 951-315-7327 f: 909-860-8470 mr.sold007@yahoo.com www.garycarterrealtor.com Report Analyzes High LTVs and Their Impact on Prices Mortgages with higher loan-to-value (LTV) ratios are not only riskier in terms of their likelihood to default, but they can also impact markets by triggering greater losses in home values, according to the most recent Home Value Forecast report from Pro Teck Valuation Services and Collateral Analytics. "During the housing bubble (2004-2006), it has been well documented that higher loanto-value (LTV) ratios led to riskier mortgages, but there has been much less research showing the correlation between high LTVs leading to greater price declines," wrote Tom O'Grady, CEO of Pro Teck, and Michael Sklarz, president of Collateral Analytics. "We have found that as home prices decline, homeowners with high LTVs are much less inclined to stay in their homes since they have little or no equity to protect. This leads to more price declines, which has a cascading effect on other high LTV owners and a further depreciation in home values," the authors explained. To illustrate their findings, the authors used Palmdale, California, as an example, where the LTV ratio was about 94 percent from 2000 to 2012. From the area's 2006 peak to 2012, prices declined by more than 60 percent. During the crisis, second mortgages were also more commonly used, leading to an even greater increase in LTVs, according to the report. During the same period in Arcadia, California, the average LTV stayed well below 70 percent; home values also experienced much smaller declines during the bubble period and now stand at all-time highs. Butler & Hosch Acquires Assets of Prommis Subsidiaries Butler & Hosch, P.A., a multistate law firm focused on the legal needs of the mortgage banking industry, purchased the majority of assets from three former subsidiaries of Prommis Solutions, which filed for bankruptcy in March. As of the end of May, the majority of assets from Cal-Western Reconveyance Corporation were transferred to Butler & Hosch. The California-based company was also renamed as a new corporate entity—CalWestern Reconveyance LLC. VISIT US ONLINE @ DSNEWS.COM In a release, the firm assured clients that little change should be expected as a result of the transfer, with Cal-Western Reconveyance LLC retaining all of the professionals from the former corporation, along with all of the operating systems, records, and intellectual assets. Cal-Western Reconveyance, which serves as one of the largest trustee companies in the nation, will continue to provide nonjudicial foreclosure services to clients. In addition, the majority of assets held by former Prommis companies, Reliable Posting & Publishing and Interface Corporation, were also transferred to Butler & Hosch. As part of the transition, Reliable Posting & Publishing was renamed DefaultLink Post & Publication Company LLC, while Interface Corporation was named iMail LLC. As is the case with Cal-Western Reconveyance, the firm retained all former professionals associated with the two companies, so little change should be expected. Auction.com Recognized with Stevie Awards for Innovation Auction.com was recognized at the 11th Annual American Business Awards (the Stevie Awards) for its advances in the way buyers, sellers, and agents transact residential real estate with one bronze Stevie for the "Most Innovative Company of the Year (Up to 2,500 employees)" and a second for "Business Innovation of the Year–Consumer Services Industries." The awards celebrated the Irvine, California-based company's launch of its consumer-to-consumer platform in 2012 and its subsequent success in bringing buyers and sellers together in a transparent process. The Stevie Awards were created to honor positive contributions of organizations and California Joyce Essex joyce@essexharvey.com www.EssexHarvey.com 310-777-6375 phone 310-922-7476 cell 73