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» VISIT US ONLINE @ DSNEWS.COM 7 A look at facts you didn't know you couldn't live without. Compiled by the DS News Staff TAKE A LOOK INSIDE THE NUMBERS D ATA B I T S The number of residential mortgage loans in active foreclosure during October 2015 totaled 721,000, a decline of 191,000 over the year (21 percent); it was the lowest number of residential loans in foreclosure since December 2007, according to Black Knight Financial Services. The U6 unemployment rate, which counts both people without work seeking full-time employment and those workers "marginally attached to the labor force and those working part-time for economic reasons," was 9.8 in October 2015, the first time it was below 10 percent for any month since May 2008, according to the U.S. Bureau of Labor Statistics. WELLS FARGO SETTLES WITH DOJ OVER BANKRUPTCY RULES VIOLATIONS INSIDE THE JOURNAL // MOVERS & SHAKERS // ON THE WEB // THE APP SPECTRUM Source: CoreLogic (as of September 2015) Source: CoreLogic (as of September 2015) STATES WITH THE HIGHEST SERIOUS DELINQUENCY RATE 1 New Jersey 8.0% 2 New York 6.5% 3 Florida 5.8% 4 Mississippi 5.0% 5 Maine 4.9% 6 Rhode Island 4.8% 7 Maryland 4.8% 8 Delaware 4.6% 9 Connecticut 4.6% 10 Nevada 4.3% State Percentage Ranking STATES WITH THE LOWEST SERIOUS DELINQUENCY RATE 1 North Dakota 1.0% 2 Alaska 1.2% 3 Montana 1.4% 4 Colorado 1.4% 5 Minnesota 1.7% 6 Utah 1.7% 7 Nebraska 1.7% 8 California 1.7% 9 Wyoming 1.8% 10 Arizona 1.8% Ranking State Percentage Wells Fargo Bank and the Department of Justice's U.S. Trustee program have entered into a settlement agreement over the bank's acknowledged violation of federal bankruptcy rules that took effect in December 2011, according to an announcement from the DOJ. Under the terms of the settlement, Wells Fargo is required to pay $81.6 million in remediation to homeowners who were in bankruptcy between December 11, 2011, and March 31, 2015. e bank has acknowledged that repeatedly failed to timely file more than 100,000 payment change notices (PCNs), which are required to be filed by mortgage creditors and served 21 days before the Chapter 13 debtor's monthly mortgage payment is adjusted (Bankruptcy Rule 3002.1). e bank also acknowledges that it failed to perform more than 18,000 escrow analyses on nearly 68,000 mortgage accounts of homeowners in bankruptcy during the three-plus year period from December 2011 to March 2015. "I am pleased that Wells Fargo has acted responsibly by accepting accountability for its deficient bankruptcy practices, agreed to compensate affected homeowners for those deficiencies and committed to making necessary improvements in its bankruptcy operations," said Director Cliff White of the U.S. Trustee Program. "When creditors fail to comply with the bankruptcy laws and rules, they compromise the integrity of the bankruptcy system and must be held accountable. Transparency in the process is of paramount importance. Homeowners in bankruptcy have the right to proper and timely notices, particularly when they are being asked to pay more. e U.S. Trustee Program remains diligent in its effort to hold financial institutions that disregard the law accountable for their actions." Wells Fargo has also agreed to change its internal operations and submit to oversight by an independent monitor who will periodically perform compliance checks and file reports with the bankruptcy court, according to the DOJ. e two parties have selected Lucy Morris of Hudson Cook LLP as the independent reviewer, and the bank will pay all costs associated with the compliance reviews. "We believe we have made the necessary investments and improvements in our systems and processes to ensure that payment change notices for the bankruptcy court and escrow analyses for customers in bankruptcy are properly prepared and delivered in a timely fashion," said Michael DeVito, executive vice president for Wells Fargo Home Mortgage. "We will work with the U.S. Trustee's office and an independent reviewer to demonstrate the effectiveness of our improvements and to provide payments to customers, as required." PAGE 36 Chief Economist, First American Financial Corporation ASK THE ECONOMIST WITH Mark Fleming

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