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80 STATE OF AFFAIRS: MIDWEST » Illinois RANK: 7 90+ Day Foreclosure Unemployment Delinquency Rate Rate Rate NOVEMBER 2013 2.62% 3.66% 8.7% YEAR AGO 3.20% 5.72% 8.7% YEAR-OVER-YEAR CHANGE -18.1% -36.0% 0.0% Top County PIKE COUNTY 90+ Day Foreclosure Delinquency Rate Rate NOVEMBER 2013 3.53% 8.12% YEAR AGO 2.57% 10.30% YEAR-OVER-YEAR CHANGE 37.4% -21.2% Top Core-Based Statistical Area PONTIAC, IL 90+ Day Foreclosure Delinquency Rate Rate NOVEMBER 2013 3.50% 6.56% YEAR AGO 3.96% 7.73% YEAR-OVER-YEAR CHANGE -11.5% -15.1% 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 November 2013 foreclosure rate. All figures are rounded to the nearest decimal. The unemployment rate reflects preliminary November 2013 figures released by the Bureau of Labor Statistics. All other data courtesy of LPS Data & Analytics. level of security" against theft of air condi- tioning units and copper in vacant properties. Featuring 14-gauge steel and proprietary brackets that have no pry points, the product still can move air throughout the unit even while secured, offering protection for units even after they're occupied. "With copper theft at an all-time high, more people are experiencing air conditioner theft and vandalism at both vacant and oc- cupied properties," said Chad Mosley, SVP of VPS. "e A/C Fortress III allows us to provide our clients peace of mind that the air conditioners on their properties are safe and secure thanks to this heavy-duty steel physical deterrent. It's also a visual deterrent to help prevent crime." In addition to selling the A/C Fortress III with an installation kit, the company also provides install and removal services as part of a monthly rental program. Morningstar Executive Gives Assessment of New CFPB Rules "Under the new CFPB [Consumer Finan- cial Protection Bureau] rules, servicers will have to provide very detailed and accurate informa- tion to borrowers about each aspect of their loans and/or any foreclosure procedures that may occur," according to Richard Koch, SVP at Morningstar Credit Ratings. Koch discussed his assessment of the new rules' impacts in a recent conversation with Louis Amaya, co-founder of iServe Compa- nies on Mortgage Markets Today, a Five Star Radio presentation. "ere will be a very strict interpretation of the guidelines with penalties to servicers if they fail to adhere to the new requirements," Koch said. He explained that the prominent rule changes will impact nine mortgage servicing areas: • Periodic billing statements--detailed break- down of the amounts that make up payments • Adjustable-rate mortgage (ARM) interest rate change notices • Prompt crediting of payments and payoff payments • Force-placed insurance • Error resolution and information requests • Information management policies and procedures • Early intervention with delinquent bor- rowers • Continuity of contact with delinquent borrowers • Loss mitigation procedures ough regulators are expected to be stringent when it comes to enforcing the new servicing rules, Koch says there will be some exemptions for small servicers--those that service 5,000 or fewer mortgage loans. To qualify, these must be loans that the servicer or an affiliate originated or owns. is would exempt them from several rules, including sending periodic statements, but not from sending interest rate adjustment no- tices, timely crediting of payments, and reso- lution of errors within certain timeframes. "In the past, there have been numerous litigated cases where proof of claims and pay- ment statements presented to the court were not accurate," Koch said. "Some of the new rules were created to correct that." One prominent area of dispute in the past has been the issue of forced-placed insurance. If a borrower has not obtained insurance for the property, after a certain time period, the servicer can take out insurance on the property and charge the borrower for the premiums. "Force-placed insurance is often much more expensive than borrowers can get on their own," Koch explained. "CFPB rules require that the servicer must have a reasonable basis to believe a borrower has failed to maintain hazard insur- ance before actually being able to charge that person for the insurance, and this must be done within certain timelines." Other regulations dictate timelines and standards for interacting with delinquent homeowners including early intervention, es- tablishment of a single point of contact, easy access to records, and guidelines to efficiently manage the loss mitigation process. e benefit to servicers is that these new rules create consistency in a lot of different areas of loan servicing. "Because this is an industry that really has not been highly regulated in the past, there is a lot of work for them to do to come up to standards in terms of policies and procedures, compliance, and technology," Koch said. "e new rules clearly let servicers know what they will be accountable for in the future regarding CFPB standards. e rules also es- tablish clear expectations so that borrowers will know what to expect from their servicers." To prepare for all these changes, a lot of servicing companies have spent the better part of the last 12 to 18 months getting ready for the changeover. Koch says the downside of all this is the added expense for services that must be performed within the same profit margin as before the rules went into effect. IN THE NEWS Vacant Property Security Unveils New Anti-Theft Container Vacant Property Security (VPS), a firm specializing in securing and maintaining both residential and commercial properties, announced the latest addition to its security offerings: the A/C Fortress III. According to a company release, the A/C Fortress III is designed to provide "the ultimate Illinois Re/Max Professionals 630.679.5417 Office 630.768.5175 Cell edjrsellsreos@wearepros.com 484 W. Boughton Rd., Suite C Bolingbrook, IL 60440 Follow my listings on Twitter: twitter.com/Ed_Lukasik_Jr www.elukasikjr.illinoisproperty.com Edward Lukasik Jr. Broker/ Owner

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