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» VISIT US ONLINE @ DSNEWS.COM Compiled by the DS News Staff FIVE MINUTES WITH CHRISTOPHER C. HASPEL SENIOR ADVISOR ON SERVICING AND SECURITIZATION FOR THE CONSUMER FINANCIAL PROTECTION BUREAU PAGE 31 inside the journal // movers & shakers // on the web // the app spectrum top10 Study Finds One-Third of Borrowers Underwater but Nine of 10 Current About 15.7 million However, when looking homeowners were at the total amount of "While it was underwater in the negative equity that first quarter of 2012, disappointing to exists, combining according to Zillow. all underwater see negative equity This translates to homeowners, the numbers remain so about one-third, number is $1.2 trillion. or 31.4 percent, of high, it is important Through the $25 homeowners with a to note that negative billion multi-state mortgage. Zillow's equity remains only a settlement, $10 billion latest assessment has been allotted represents an increase paper loss for the vast to reduce principal from 31.1 percent in the majority of underwater for underwater previous quarter but homeowners—an homeowners." a decrease from 32.4 amount analysts have percent a year earlier. said is not enough to "While it was disappointing to see negative equity make a dramatic impact on recovery. numbers remain so high, it is important According to Zillow's findings, 2.4 to note that negative equity remains million homeowners with mortgages only a paper loss for the vast majority of owe more than double what their home underwater homeowners," commented is worth. In Las Vegas, nearly 90,000 Stan Humphries, Zillow's chief homeowners owe twice the amount of economist. their home's current value. Most underwater homeowners are Zillow's report on negative equity current on their mortgages, with nine in looks at current outstanding loan 10 continuing to make their payments on amounts for individual owner-occupied time and just 10.1 percent more than 90 homes and compares them to the days delinquent, Zillow reports. homes' current estimated values. While negative equity is never According to Zillow, its report is the beneficial for homeowners, a large only one that uses current outstanding percentage of underwater borrowers loan balances, as opposed to basing are at least wading in shallow waters. outstanding loan balances on the most Nearly 40 percent owe between 1 and 20 percent more than their home's value. recent loan on the property. A look at facts you didn't know you couldn't live without The National Association of Realtors has awarded grants totaling more than $60,000 to 19 local associations through the Housing Opportunity Program. Take a look inside the numbers data b i t s STATES WHERE CONSUMERS ARE THE LEAST FINANCIALLY DISTRESSED* State Distress Score 1. North Dakota 84.0 2. South Dakota 80.2 3. Wyoming79.2 4. Nebraska79.2 5. Vermont77.8 6. Iowa77.5 7. Alaska77.3 8. Minnesota77.2 9. New Hampshire 76.2 10. Virginia76.2 STATES WHERE CONSUMERS ARE THE MOST FINANCIALLY DISTRESSED* State Distress Score 1. Nevada61.7 2. Georgia64.0 3. Michigan64.8 4. Mississippi65.1 5. Florida65.7 6. Arizona66.1 7. Indiana66.2 8. Tennessee66.5 9. South Carolina 66.5 10. Alabama66.6 * Based on Q1 2012 data on employment, housing, credit, household budgets, and net worth. A score below 70 indicates financial distress. Nationally, U.S. households scored 69.9 on the index's 100-point scale. Source: CredAbility Home sellers' asking prices rose 0.2% in April compared to a year earlier, while rental rates increased by 5.6% over the same period, according to the online marketplace Trulia. 11

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