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» Equifax Reports Delinquencies Decline in March Total delinquent first mortgage balances fell below $500 billion in March 2012, the lowest since January 2009, according to Equifax's March National Consumer Credit Trends Report and Creditforecast.com, a joint product of Equifax and Moody's Analytics. As of March 2012, the number of outstanding first mortgages was 49.5 million, a nearly 11 percent decrease from the March 2008 peak when it reached more than 55 million. According to the report, the decline was caused by high foreclosures, loan payoffs, and low homebuyer demand. Of all the delinquent first mortgages, a staggering 71 percent were taken out in 2005-2007. The number of mortgages rolling further into severe delinquency stages is decreasing with the share of mortgage loans transitioning from current status to 30 days past due at its lowest level since June 2007. The share of first mortgages rolling from 60 days to 90 days past due was at the lowest level in 59 months. Loans in the 90-plus stage or in foreclosure declined over the past 24 months as well. Mortgage balances also shrunk 3.5 percent below their year-ago level in March, posting the 36th consecutive month of year-over-year declines. "We're seeing effects of the economic recovery within existing accounts in the form of fewer delinquencies and foreclosures but not a substantial amount of new activity as home sales and resulting new home financing fail to keep pace with payoffs and foreclosures," said Amy Crews Cutts, Equifax chief economist. Credit levels continued to show a decline and fell 25 percent compared to the peak reached in 2008. Also, home equity lines of credit (HELOC) appear to shrink with the number of revolving home equity loans at a five-year low and 11.6 million outstanding as of March 2012. HELOCs opened in January 2012 were 67 percent lower than January 2008 but 16 percent higher than the recession low in January 2009. Of delinquencies within existing HELOCs, an overwhelming 79 percent were from loans originated between 2005 and 2007. Movers & Shakers VISIT US ONLINE @ DSNEWS.COM CONTINUED FROM PAGE 36 ISGN Names Tim Anderson Director of Corporate Technology Strategy ISGN Corporation hired Tim Anderson as director of corporate technology strategy. Anderson's background includes more than 30 years' of mortgage industry and technology experience. He will lead ISGN in its delivery of products, services, and technology and will spearhead efforts to define the company's technology strategy. Fiserv Announces Cliff Skelton as EVP and Chief Information Officer Cliff Skelton joined Fiserv as EVP and chief information officer. In his new role, Skelton oversees global information technology infrastructure and operations, enterprise architecture, technology governance, and programs aimed at increasing the efficiency and effectiveness of the company's technology platforms. Previoulsy, he was with Ally Financial. Millsap & Singer Adds Two New Attorneys to Its Ranks Millsap & Singer, LLC–a provider of legal representation on foreclosure, bankruptcy, and mortgage-related litigation in the states of Missouri and Kansas–has hired two new attorneys. Kenneth Coyne joined the firm as an attorney practicing in the areas of bankruptcy and real estate litigation. He received his bachelor's degree in 1990 from Saint Louis University and his Juris Doctor from the Saint Louis University School of Law in 1995. He currently serves as a trustee and ambassador for the St. Louis-based St. Patrick's Center. Jennifer Michaels joined the firm as an associate attorney with a specialty in judicial foreclosures in the state of Kansas. She received her bachelor's degree from the University of Nebraska-Lincoln in 2006 and her Juris Doctor from the Washburn University School of Law in 2009. REO Allegiance CEO Recognized for Business Leadership Lisa Sadaoui, president and CEO of REO Allegiance, was selected as a Leading Woman Entrepreneur and Business Owner of New Jersey by New Jersey Monthly Magazine. Nominees were chosen based on innovation, market potential, community involvement, and advocacy for women. Sadaoui founded REO Allegiance and now leads the company in providing property preservation services to clients nationwide. Cityside Hires Chief Business Development Officer Clinton Alcorn has joined Cityside Management Corporation as chief business development officer. He will work out of the company's new Phoenix, Arizona, office and help strengthen its presence in the REO market and rapidly developing rental management space. Alcorn was previously with Bank of America where he oversaw the bank's field services organization and managed its REO sales and marketing group. MORE THAN 200 BANKS POSE HIGH RISK OF FAILURE While the pace of bank closings slowed this year compared to 2011, the market research firm Trepp noted in a May report that there are still more than 200 banks at high risk of failure as of the first quarter of 2012. More specifically, 209 banks are considered high risk for failure on the Trepp Watchlist. Three of those failed in April, leaving 206. The high-risk banks are most heavily concentrated in Georgia (41 banks), followed by Florida (32) and Illinois (24). Overall, the national tally for failed banks this year rose to 23 as of mid-May. When comparing closings through the end of April, there were 22 failures this year compared to 39 reported failures at the end of April 2011. Also, during the first four months in 2012, the pace of closings was 5.5 per month compared to 7.7 per month in 2011. For the April closings, bad commercial real estate loans were cited as the main reason for the failures. Commercial real estate exposure comprised 71.1 percent, or $141.2 million, of the total $198.4 million in nonperforming loans at the failed banks, according to Trepp. Residential mortgages were next in line as a source of distress, accounting for 25 percent, or $49.6 million, of the total nonperforming loans in April. As for the reasons behind the slower pace of closures, Trepp said it is attributable to ailing banks receiving more time as well as the progress banks make when it comes to raising capital and improving performance. With slower closings, Trepp added the slowdown could spill into 2013, but "much will depend on the strength of the economy in general and real estate market conditions in particular." 37

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