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» Pennsylvania rank: 11 90+ Day Delinquency Rate Foreclosure Rate october 2013 2.6% Unemployment Rate 2.9% 7.5% year ago 2.8% 3.7% 8.0% year-over-year change -6.1% -19.4% -6.3% Top County 90+ Day Delinquency Rate Monroe county Foreclosure Rate october 2013 3.2% 4.5% year ago 3.5% 3.6% year-over-year change -10.5% 24.0% Top Core-Based Statistical Area east stroudsburg, Pa 90+ Day Delinquency Rate october 2013 5.4% Foreclosure Rate 11.8% year ago 5.8% 13.2% year-over-year change -8.1% -10.6% 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 October 2013 foreclosure rate. All figures are rounded to the nearest decimal. The unemployment rate reflects preliminary October 2013 figures released by the Bureau of Labor Statistics. All other data courtesy of LPS Data & Analytics. IN THE NEWS LoanLogics Receives $11.2M Investment, Unveils MERS Monitoring Service LoanLogics, a Fort Washington, Pennsylvania-based company specializing in loan quality management and performance analytics technologies for the mortgage industry, announced it has raised $11.2 million in funding from the growth equity firm Volition Capital and existing investors. According to LoanLogics president and CEO Brian Fitzpatrick, the infusion of growth capital will be used to help the company continue its national expansion and to enhance its Enterprise Loan Quality Management System. "The industry is desperate for automation that reduces the costs and increases the benefits of loan quality management," Fitzpatrick said. "This investment will help us accelerate our growth and broaden our customer base in this important market." Volition Capital, based in Boston, contributed $10 million of the funds. "Loan quality management technology is critical to provide data transparency and meeting the increased regulatory requirements following the mortgage crisis," said Roger Hurwitz, managing partner of the equity firm and new member of LoanLogics' board of directors. "LoanLogics has the right vision and management team to provide the much needed innovation needed to better control costs and manage underwriting risk." LoanLogics also announced the unveiling of its MERS Independent Third Party Performance Monitoring and Annual Review service. The specialty audit practice reviews and tests controls and processes of Mortgage Electronic Registration Systems, Inc. (MERS) so servicers can ensure they are compliant with MERS' rules and avoid scrutiny. "Lenders have long-recognized the importance MERS plays in helping save time, money, and improving accuracy," said Gary Vandeventer, who recently joined LoanLogics as VP of loan servicing consulting after serving as VP of MERS' product division. "At the same time, however, there is an extensive procedures manual that servicers have to familiarize themselves with, and that can prove to be a daunting task for many of them." In addition to checking for the presence or absence of certain processes, LoanLogics' service evaluates how a client runs its MERS operations and examines if they can meet required timeframes. Homes Selling Swiftly in Southwestern Pennsylvania Southwestern Pennsylvania saw a nearly 15 percent annual increase in the number of homes placed under sales agreement, according to the November housing report from the West Penn Multi-List, Inc. At the same time, the average number of days homes were on the market decreased by nearly 15 percent. "Homes that were sold in November, were on the market almost two weeks less than homes sold in November last year," said George Hackett, current president of the West Penn Multi-List and president of Coldwell Banker Real Estate Services in Pittsburgh. "We are seeing homes going under agreement and selling more quickly than we did last year at this time. The housing market in our region continues to perform quite well." VISIT US ONLINE @ DSNEWS.COM A comparison of November 2012 to November 2013 data for the 13-county region that the West Penn Multi-List serves showed: » New listings increased 2.54 percent (2,122 homes vs. 2,176). » Residential homes placed under agreement increased 14.87 percent (2,501 homes vs. 2,873). » Average days on market decreased 14.61 percent (89 days vs. 76). » Average home sale price increased 0.15 percent (from $157,050 to $157,282). According to Hackett, November's housing statistics are reflective of 2013 as a whole. "In 2013, we have seen a modest improvement in new listings and average sale price, with a more dramatic improvement in the number of homes under contract and the average days homes are on the market," he said. Hackett continued, "With limited housing inventory, we expect an active sales season this winter. So far this winter, homebuyers are not letting up their searches." The November numbers represent the 13-county area serviced by the West Penn Multi-List, including Allegheny, Armstrong, Beaver, Butler, Washington, Westmoreland, Fayette, Greene, Clarion, Lawrence, Mercer, Somerset, and Indiana. PNC, Freddie Mac Reach Settlement PNC Financial Services Group and Freddie Mac announced they reached an agreement in principle to resolve substantially all indemnification and repurchase obligations related to loans sold by PNC to the GSE between 2000 and 2008. According to the agreement, Pittsburghbased PNC will pay Freddie Mac a total of $89 million (minus a credit of $8 million that PNC previously paid) to resolve certain existing and future repurchase obligations related to approximately 900,000 loans. The intention of the settlement is to compensate Freddie Mac for certain past losses and potential future losses related to denials, rescissions, and cancellations of mortgage insurance. This agreement follows a previously announced agreement PNC reached with Fannie Mae to resolve repurchase demands with respect to loans sold between 2000 and 2008. The amount of the settlements with Freddie Mac and Fannie Mae had been fully accrued by PNC as of September 30, 2013. 119

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