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» Report: Delinquency Rate Continues to Plunge Homeowners are working harder to make timely mortgage payments, according to recent data from TransUnion. The Chicago-based credit bureau reports the mortgage delinquency rate dropped 23.3 percent over the 12-month period concluding in September, ending Q 3 2013 at 4.09 percent. A year earlier, it stood at 5.33 percent. The mortgage delinquency rate dropped 5.3 percent on a quarterly basis, down from 4.32 percent in Q2 2013 and marking the seventh straight quarterly decline. Around the country, most states saw a decline in their mortgage delinquency rates between Q 3 2012 and Q 3 2013. California, Arizona, Nevada, Colorado, and Utah experienced more than 30 percent drops. Three states—California, Florida, and Nevada— had double-digit percentage declines on a quarterly basis as well. TransUnion cultivated the numbers from anonymized credit data for virtually every credit-active consumer in the United States. "This isn't a sample data set," said Tim Martin, group VP of U.S. housing for TransUnion's financial services business unit. "We looked at all 52 million installmentbased mortgages in the U.S. and the trend is clear—the percentage of borrowers willing and able to make their mortgage payments continues to improve." Martin continued, "The overall delinquency rate is still high relative to 'normal,' but a 23 percent year-over-year improvement is great news for homeowners and their lenders." The credit agency recorded 52.31 million mortgage accounts as of Q 3 2013, down from 54.23 million in Q 3 2012. This variable was as high as 63.14 million in Q 3 2008 prior to the worst of the housing crisis. TransUnion's latest mortgage report also found that the nonprime population (those consumers with a VantageScore credit score lower than 700) continues to represent a smaller portion of all mortgage loans, more than 50 percent lower than was observed in 2007. Nonprime borrowers constituted 5.82 percent of all new mortgage originations in Q2 2013. In Q2 2008, nonprime borrowers represented 12.69 percent of the total. TransUnion forecasts that the downward consumer delinquency trend will continue through the final months of 2013. The delin- quency rate will likely be just under 4 percent as of the end of the year, the credit bureau said. "New originations will be down and nonprime borrowers will start to re-emerge," Martin said. "At this point we believe delinquency rates will continue to decline." S&P, Fitch Issue Stable Outlooks for Fay Servicing Fay Servicing, a Chicago-based special servicer, has earned stable outlooks from both Standard & Poor's (S&P) and Fitch Ratings. From Fitch, Fay Servicing received Residential Subprime and Special Servicer Ratings of RPS3 and RSS3, respectively, with an "outlook stable" judgment. "The rating actions are based on Fay's robust single point of contact (SPOC) model and integrated servicing technology," Fitch said. "The ratings also incorporate Fitch's overall concerns for the U.S. residential servicing industry which include the ability to maintain high performance standards while addressing the rising cost of servicing and changes to industry practices, mandated by regulators and other parties." Meanwhile, S&P granted Fay Servicing a Residential Mortgage Subprime and Special Servicing Rating of average with a "stable outlook." "We are proud to have received these ratings especially at a time when the U.S. servicing industry continues to evolve in order to successfully face a variety of challenges associated with added regulations and changing market conditions," said Fay Servicing CEO Ed Fay. "These results validate that we've built a strong foundation for future growth, including securitizations, and that we will continue to responsibly and effectively serve homeowners, lenders, and investors for years to come." STAT INSIGHT 1% Increase in nonfarm employment in Illinois over the past year. Source: Wells Fargo Securities Economics Group VISIT US ONLINE @ DSNEWS.COM Indiana rank: 18 90+ Day Delinquency Rate Foreclosure Rate october 2013 2.8% Unemployment Rate 2.4% 7.5% year ago 3.0% 3.8% 8.4% year-over-year change -5.8% -35.0% -10.7% Top County tIpton county 90+ Day Delinquency Rate Foreclosure Rate october 2013 2.7% 5.7% year ago 2.7% 5.7% year-over-year change 1.9% 1.1% Top Core-Based Statistical Area 90+ Day Delinquency Rate Logansport, In Foreclosure Rate october 2013 4.2% 4.7% year ago 4.3% 6.3% year-over-year change -3.0% -25.4% 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. Iowa rank: 23 90+ Day Delinquency Rate Foreclosure Rate october 2013 1.5% Unemployment Rate 2.0% 4.6% year ago 1.7% 2.6% 5.1% year-over-year change -8.9% -23.3% -9.8% Top County chIckasaw county 90+ Day Delinquency Rate Foreclosure Rate october 2013 1.3% 4.7% year ago 1.0% 3.9% year-over-year change 27.0% 20.2% Top Core-Based Statistical Area spencer, Ia 90+ Day Delinquency Rate Foreclosure Rate october 2013 2.3% 3.7% year ago 1.8% 3.0% year-over-year change 28.4% 23.5% 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. 121

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