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IN THE NEWS Wisconsin rank: 18 90+ Day Foreclosure Unemployment Delinquency Rate RateRate march 2012 2.69%3.68% 6.8% year ago 2.74%4.12% 7.6% percent point change -1.8% -10.6%-10.5% Top County Attention Asset Managers RICHLAND COUNTY 90+ Day Delinquency Rate Foreclosure Rate march 2012 3.02%6.78% year ago 3.83%7.37% percent point change -21.1%-8.1% Top Core-Based Statistical Area JANESVILLE, WI 90+ Day Delinquency Rate Foreclosure Rate march 2012 WISCONSIN REO BROKER OF CHOICE 4.02%4.68% year ago 4.06%5.52% percent point change -0.9%-15.2% 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 March 2012 foreclosure rate. All figures are rounded to the nearest decimal. The unemployment rate reflects preliminary March 2012 figures released by the Bureau of Labor Statistics. All other data courtesy of Lender Processing Services. STAT INSIGHT 77% Increase in Wisconsin short sales between January 2011 and January 2012. Source: RealtyTrac 110 • #1 in Customer Service • Immediate Occupancy Checks, Cash for Keys, Re-Keying, Trash-Out, Winterization, Repairs and Rehabilitation • $30+ Million in Annual Sales • Top Performing REO Broker for Wisconsin • Available 24/7 /365 • Platinum Certified Equator Member • Multi-Forms User • REO Broker Since 2005 • Initial BPO's are consistently within 10% of final sales price • Have established connections with lenders, title companies, contractors, investors, etc. • Top-Performing Buyer Agents Team • 500+ Units Closed in 2011 JASON SCHWITTAY Broker/Owner Apple Valley Realtors Jason@AppleValleyREO.com 920-702-0130 AppleValleyREO.com 626 E. State St. #1902 Milwaukee, WI 53202 MGIC sues Freddie Mac and FHFA Over Pool Dispute After First-Quarter Loss Mortgage Guaranty Insurance Corporation (MGIC) filed a lawsuit against Freddie Mac and its conservator, the Federal Housing Finance Agency (FHFA). The suit was filed in federal court in Milwaukee and centers around a disagreement over the aggregate loss limit of certain pooled insurance policies. According to MGIC's 2012 first-quarter earnings report, the company believes the "aggregate loss limit for a particular pool of loans insured under a policy decreases with termination of coverage for the pool under a policy." On the other hand, Freddie Mac believes the initial aggregate loss limit remains in effect until the last policies that provided coverage for the pools terminate, the report stated. MGIC explained that the aggregate loss limit is approximately $535 million higher under Freddie Mac's interpretation than its own. MGIC said that although the company went to the courts, the issue can still be resolved outside of court. "Indeed, we welcome the opportunity to continue such discussions, but could not accept the terms on which Freddie Mac was willing to do so," MGIC stated. MGIC pointed out that it is Freddie Mac's largest mortgage insurance counterparty, and said it trusts the "attempt to seek resolution of this dispute through litigation will not affect that relationship." For MGIC, the company said it intends to conduct "business as usual." News of the lawsuit followed MGIC's announcement that although it saw a drop in delinquencies, the company experienced a loss of $19.6 million in Q1. MGIC's percentage of delinquent loans, excluding bulk loans, stood at 12.84 percent as of March 31, compared with 13.79 percent at the end of the previous quarter and 13.87 percent at the end of the first quarter a year ago. When including bulk loans, the percentage of loans that were delinquent at the end of the 2012 first quarter was 15.09 percent. According to MGIC's earnings report, approximately 22 percent of the company's primary delinquency inventory was Countrywide-related loans. Even with the drop in delinquencies, the mortgage insurer reported a net loss for the seventh consecutive quarter. Loss per share was $0.10 at the end of this year's first quarter. It was $0.17 per share for the same quarter a year ago.