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84 STATE OF AFFAIRS: MIDWEST ยป IN THE NEWS Companies Team Up to Create Waterfall Loss Mitigation Program In Michigan, DLS Servicing Consul- tants and WorkSmart Database Masters have come together to release WaterfallCalc.com, a new Web-based Waterfall loss mitigation program for Federal Housing Administra- tion (FHA) mortgages. Created by Donna Schmidt, managing director at DLS Servic- ing Consultants, and Andy Tabisz, president of WorkSmart Database Masters, Water- fallCalc.com is designed to provide FHA servicers with the correct Waterfall option based on basic loan and borrower data. e program also performs all workout calculations using the provided information, which can either be entered manually or up- loaded using an export file from the lender's servicing system. Created to fit the specifica- tions of FHA Mortgagee Letter 2013-32 and the Home Affordable Modification Program (HAMP) FAQs, WaterfallCalc.com also allows for FHA-approved variances unique to housing finance agencies. Minnesota RANK: 47 90+ Day Foreclosure Unemployment Delinquency Rate Rate Rate APRIL 2014 1.28% 0.59% 4.7 YEAR AGO 1.29% 1.13% 5.2 YEAR-OVER-YEAR CHANGE -0.7% -47.7% -0.5 Top County PIPESTONE COUNTY 90+ Day Foreclosure Delinquency Rate Rate APRIL 2014 2.06% 2.43% YEAR AGO 2.29% 1.74% YEAR-OVER-YEAR CHANGE -10.1% 40.0% Top Core-Based Statistical Area NEW ULM, MN 90+ Day Foreclosure Delinquency Rate Rate APRIL 2014 2.43% 1.33% YEAR AGO 1.65% 0.67% YEAR-OVER-YEAR CHANGE 47.7% 100.4% 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 April 2014 foreclosure rate. All fi gures are rounded to the nearest decimal. The unemployment rate refl ects preliminary April 2014 fi gures released by the Bureau of Labor Statistics. All other data courtesy of LPS Data & Analytics. Minnesota www.MinnesotaREO.com 612-669-6324 952-829-2938 763-432-7640 612-821-7500 952-844-1511 763-533-9133 651-209-8444 Bruce McAlpin Jeff Detloff Long H. Doan Maribel Garcia Garth Johnson Craig Murphy Michael Olsen Missouri RANK: 40 90+ Day Foreclosure Unemployment Delinquency Rate Rate Rate APRIL 2014 2.30% 0.84% 6.6 YEAR AGO 2.35% 1.21% 6.6 YEAR-OVER-YEAR CHANGE -2.1% -30.2% 0 Top County MISSISSIPPI COUNTY 90+ Day Foreclosure Delinquency Rate Rate APRIL 2014 4.24% 2.91% YEAR AGO 3.16% 2.27% YEAR-OVER-YEAR CHANGE 34.4% 28.3% Top Core-Based Statistical Area MOBERLY, MO 90+ Day Foreclosure Delinquency Rate Rate APRIL 2014 2.55% 2.33% YEAR AGO 3.62% 1.18% YEAR-OVER-YEAR CHANGE -29.5% 98.5% 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 April 2014 foreclosure rate. All fi gures are rounded to the nearest decimal. The unemployment rate refl ects preliminary April 2014 fi gures released by the Bureau of Labor Statistics. All other data courtesy of LPS Data & Analytics. IN THE NEWS Missouri Man Sentenced to 4 Years for Defrauding TARP Bank e Office of the Special Inspector Gen- eral for the Troubled Asset Relief Program (SIGTARP) announced the latest victory in its ongoing effort to protect taxpayers by combating fraud, waste, and abuse connected with the U.S. Department of the Treasury's Troubled Asset Relief Program (TARP). Michael Edward Filmore of Chesterfield, Missouri, was sentenced to four years in federal prison and ordered to pay $6.5 million in restitution for defrauding Pulaski Bank. Filmore will remain on supervised release for three years after the completion of his time in prison. e prosecution was brought in coordination with President Barack Obama's Financial Fraud Enforcement Task Force, whose sole purpose is to wage an aggressive effort to investigate and prosecute financial crimes. Court records indicated that Filmore rep- resented to Pulaski that he owned Healthcare Partners Group, LLC, a medical equipment sales firm in need of financing for the acquisi- tion of equipment, which would then be sold or leased to consumers. In order to obtain financing, Filmore fabricated and altered his brokerage account statements to show that he had millions of dollars in securities, which he would pledge as collateral for outstanding loans. e securities and other medical equip- ment, however, did not exist. Filmore was able to obtain 15 separate loans from Pulaski totaling more than $6 million. In November 2013, bank employees began to become suspi- cious of Filmore's activities and reported him to authorities after an internal investigation revealed that he had supplied false informa- tion to the bank. Fllmore pled guilty to one count of felony bank fraud in December 2013. To date, there is still an outstanding balance on the loans of more than $5 million. "Filmore's 10-year fraud scheme cost Pulaski Bank more than $5 million, the bank was unable to repay TARP in full, and tax- payers took a $3.6 million loss on Treasury's discounted sale of its TARP stock in the bank," said Christy Romero, special inspector general for TARP. Romero continued, "Before and during the time that Pulaski Bank was in TARP, Filmore obtained more than $6 million in Pulaski Bank loans by fabricating documents, using shell companies, and outright lying about collateral. SIGTARP and our law en- forcement partners will bring justice to those who commit crimes that jeopardize TARP investments." Missouri home prices in April have increased in the previous 3-month span by 2.5 percent, according to CoreLogic. KNOW THIS