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Connecticut rank: 6 90+ Day Delinquency Rate Foreclosure Rate September 2013 2.7% Unemployment Rate 4.3% 8.0% year ago 2.8% 5.4% 8.5% year-over-year change -2.3% -20.0% -5.9% Top County Windham CounTy 90+ Day Delinquency Rate Foreclosure Rate September 2013 3.9% 6.8% year ago 4.1% 8.3% year-over-year change -4.9% -18.1% Top Core-Based Statistical area WillimanTiC, CT 90+ Day Delinquency Rate September 2013 3.9% Foreclosure Rate 6.8% year ago 4.1% 8.3% year-over-year change -4.9% -18.1% 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 September 2013 foreclosure rate. All figures are rounded to the nearest decimal. The unemployment rate reflects preliminary September 2013 figures released by the Bureau of Labor Statistics. All other data courtesy of LPS Data & Analytics. IN THE NEWS SEC Says RBS Securities Misled Investors in Subprime Deal The Securities and Exchange Commission (SEC) charged RBS Securities, Inc., the wholesale banking subsidiary of the Royal Bank of Scotland, with misleading investors in a 2007 subprime residential mortgagebacked security (RMBS) offering. RBS agreed to settle the matter last month and pay more than $150 million, which the SEC will use to compensate investors for harm suffered as a result of the RBS deal. The SEC alleges RBS said the loans backing the offering "generally" met the lender's underwriting guidelines, even though government officials say nearly 30 percent fell so short of the guidelines that RBS should have excluded them from the offering entirely. Stamford, Connecticut-based RBS Securities, known as Greenwich Capital Markets back in 2007, was paid approximately $4.4 74 million for its work as the lead underwriter on the transaction. RBS based its statements regarding loan quality on reviews of only a very small portion of the mortgages pooled, the SEC said in a complaint filed in federal court in Connecticut. RBS told investors the loans backing the offering were "generally in accordance with" the lender's underwriting guidelines, which consider the value of the home relative to the mortgage and the borrower's ability to repay the loan. SEC officials allege RBS knew or should have known such statements were false because due diligence before the offering showed that almost 30 percent of the underlying loans did not meet the underwriting guidelines. In its complaint, the SEC said RBS gave investors a misleading impression of the quality of the loans backing the offering and the likelihood of their repayment. The federal agency charged RBS with violations of Sections 17(a)(2) and (3) of the Securities Act of 1933. RBS, without admitting or denying the SEC's allegations, agreed to a final judgment that orders the firm to disgorge $80.3 million, plus prejudgment interest of $25.2 million, and pay a civil penalty of $48.2 million. Homes Moving off the Market in Connecticut Connecticut's single-family home sales increased again in September, while prices rose for the 12th consecutive month, according to a report from the Warren Group. "This was the best September in terms of single-family sales volume since 2007. Despite rising interest rates, home sales have remained strong this entire year," said Timothy M. Warren Jr., CEO of the Warren Group. "Median prices continue their upward surge with an 8 percent gain, indicating strong demand and a shortage of supply." A total of 2,326 single-family homes sold in Connecticut in September, a 21.4 percent increase from 1,916 sales in September 2012, the Warren Group reports. Sales also increased in the third quarter—rising to 8,351 from 7,304 during the same period in 2012, which is a 14 percent increase in what is traditionally the biggest quarter of the year for closings. Yearto-date through September, sales were up almost 6 percent at 19,444, compared to 18,374 for the same period last year. The median price of single-family homes increased 8.7 percent to $250,000 in September, up from $230,000 a year earlier, making it the highest median price recorded in September since 2008. Third-quarter median prices increased almost 10 percent to $275,000 from $250,500 in the third quarter of 2012. The median price for homes sold January through September was $265,000, rising more than 10 percent from $240,000 in the prior year. STAT INSIGHT 11% Noncurrent percentage of active mortgages in Connecticut as of September month-end. Source: Lender Processing Services Delaware rank: 14 90+ Day Delinquency Rate Foreclosure Rate September 2013 3.5% Unemployment Rate 2.8% 7.0% year ago 3.8% 3.2% 7.1% year-over-year change -9.8% -12.3% -1.4% Top County KenT CounTy 90+ Day Delinquency Rate Foreclosure Rate September 2013 4.8% 3.8% year ago 5.3% 4.1% year-over-year change -9.5% -8.1% Top Core-Based Statistical Area Dover, De 90+ Day Delinquency Rate Foreclosure Rate September 2013 4.8% 3.8% year ago 5.3% 4.1% year-over-year change -9.5% -8.1% 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 September 2013 foreclosure rate. All figures are rounded to the nearest decimal. The unemployment rate reflects preliminary September 2013 figures released by the Bureau of Labor Statistics. All other data courtesy of LPS Data & Analytics.

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