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» VISIT US ONLINE @ DSNEWS.COM 81 IN THE NEWS Fifth Bank of the Year Fails; First in Pennsylvania Vantage Point Bank of Horsham, Pennsylvania was closed in early March by the Pennsylvania Department of Banking and Securities. e Federal Deposit Insurance Corporation (FDIC) was appointed as the receiver. shifted mortgage servicing rights of a portfolio worth $39 billion from Wells Fargo to Ocwen. e letter is a continued effort by Lawsky to monitor nonbank servicers and their rapid expansion and growth. Lawsky is concerned that rapid growth has left servicers without the sufficient infrastructure and personnel to handle the increased volume. "ere are real people at the other ends of these loans, and the ability to work with those homeowners is not something that these nonbank firms can build up overnight," Lawsky remarked at the New York Bankers Association Annual Meeting and Economic Forum on February 12, 2014. Nationstar CEO Jay Bray responded to the letter in a press release: "We intend to comply fully and transparently with Mr. Lawsky's request, just as we do when working with the dozens of state and federal regulators who over- see our business and industry on a daily basis." Bray continued, "We have a proven track record of helping homeowners succeed and avoid foreclosure, and we welcome the oppor- tunity to share this information with the New York Department of Financial Services." Nationstar, Ocwen, and Walter Investment Corporation recently reported very positive fourth quarter earnings, which were in part due to refinances through the Home Afford- able Refinance Program (HARP). It remains to be seen whether these earnings will continue as the shrinking availability of HARP-eligible loans becomes a factor in 2014. Moody's Investors Service cited concerns that the three largest nonbank mortgage servicing companies, Ocwen, Nationstar, and Walter Investments Corp, will begin originating nonprime mortgages as a way to increase already growing revenues. Moody's latest ResiLandscape report noted, "We have said that Ocwen and the special servicers could become the next gen- eration of non-prime originators, given their wealth of non-prime servicing experience along with the cyclical, low-margin nature of prime mortgage originations." Increased scrutiny from regulators like Lawsky and dwindling HARP-eligible loans could drive the firms to other, more risky ventures. e NYSDFS and Nationstar could not be reached for comment. e FDIC entered into a purchase and as- sumption agreement with First Choice Bank of Mercerville, New Jersey, to assume all of the deposits of Vantage Point Bank. First Choice Bank will pay the FDIC a premium of 1.5 percent to assume the deposits of Van- tage Point Bank and agreed to purchase all of the failed bank's assets. e sole branch of Vantage Point Bank will reopen as a branch of First Choice Bank during normal business hours. "e FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $8.5 million," stated a press release about the closure. Vantage Point Bank is the fifth FDIC-in- sured institution to fail this year. Millennium Bank, National Association was the fourth bank closed, and it closed the same day as Vantage Point Bank. . e last bank closed in Pennsylvania was NOVA Bank, Berwyn, on October 26, 2012. Pennsylvania RANK: 12 90+ Day Foreclosure Unemployment Delinquency Rate Rate Rate JANUARY 2014 2.84% 2.74% 6.4 YEAR AGO 3.11% 3.42% 7.8 YEAR-OVER-YEAR CHANGE -8.6% -19.8% -1.4 Top County MONROE COUNTY 90+ Day Foreclosure Delinquency Rate Rate JANUARY 2014 3.46% 4.14% YEAR AGO 2.94% 3.75% YEAR-OVER-YEAR CHANGE 17.9% 10.5% Top Core-Based Statistical Area EAST STROUDSBURG, PA 90+ Day Foreclosure Delinquency Rate Rate JANUARY 2014 5.47% 10.93% YEAR AGO 6.26% 13.19% YEAR-OVER-YEAR CHANGE -12.7% -17.1% 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 January 2014 foreclosure rate. All fi gures are rounded to the nearest decimal. The unemployment rate refl ects preliminary January 2014 fi gures released by the Bureau of Labor Statistics. All other data courtesy of LPS Data & Analytics. Rhode Island RANK: 11 90+ Day Foreclosure Unemployment Delinquency Rate Rate Rate JANUARY 2014 3.99% 2.79% 9.2 YEAR AGO 4.04% 3.89% 9.6 YEAR-OVER-YEAR CHANGE -1.3% -28.3% -0.4 Top County PROVIDENCE COUNTY 90+ Day Foreclosure Delinquency Rate Rate JANUARY 2014 4.96% 3.33% YEAR AGO 4.93% 4.79% YEAR-OVER-YEAR CHANGE 0.6% -30.6% Top Core-Based Statistical Area PROVIDENCE-NEW BEDFORD-FALL RIVER, RI-MA 90+ Day Foreclosure Delinquency Rate Rate JANUARY 2014 4.43% 2.72% YEAR AGO 4.04% 3.89% YEAR-OVER-YEAR CHANGE 9.7% -30.1% 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 January 2014 foreclosure rate. All fi gures are rounded to the nearest decimal. The unemployment rate refl ects preliminary January 2014 fi gures released by the Bureau of Labor Statistics. All other data courtesy of LPS Data & Analytics. Pennsylvania Michael A. Kusenko, Jr. Broker/President ERA Meridian Real Estate Group 2624 Leechburg Road, Lower Burrell, PA 15068 724-335-5681 phone | 724-335-6699 fax erameridianreo@comcast.net email www.meridiansells.com web Sales growth last year rose 31.19 percent in Queens, New York, according to DataQuick. KNOW THIS The share of homes with negative equity in Pennsylvania was 7.4 percent in January, according to CoreLogic. KNOW THIS

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