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132 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 507-424-6026 Bruce McAlpin Jeff Detloff Long H. Doan Maribel Garcia Garth Johnson Craig Murphy Michael Olsen Brian Rossow MIDWEST REGION HARP Refi Numbers Dwindling Despite FHFA's Efforts e total number of loans refinanced through the Home (HARP) to an unexpected turn downward in the third quarter. According to the Federal Housing Finance Agency(FHFA) third quarter Refinance Report, a total of 25,824 HARP refinances were complet- ed between July and September, down from the 31,561 refinances completed from April to June. In addition, HARP volume accounted for 5 percent of total refinance volume in the third quarter. e FHFA reported that over 3.3 million borrowers have refinanced through the HARP program, which was enacted in 2009 to help homeowners that are not able to refinance due to falling home values. e Agency approximates that over 429,000 borrowers nationwide have a financial incentive to use the HARP program but still have not. HARP refinances were highest in Florida, California, Illinois, Michigan, and Georgia, the FHFA stated. e report showed that Florida, Ohio, Il- linois, Michigan, and Georgia are the top five states with the most "in the money" borrowers that are able to use HARP. ese borrowers could save an average of $200 per month on mortgage payments. FHFA deems borrowers to be "in the mon- ey" if they meet HARP eligibility require- ments, have a mortgage balance of $50,000 or more, have a remaining mortgage of no more than ten years, and an interest rate at least 1.5 percent higher than current market rates. "FHFA is continuing its efforts to reach HARP-eligible borrowers and has held town-hall style events with local community leaders in Chicago, Atlanta, Detroit, Miami, Newark and Phoenix to get the word out about HARP," the report stated. ose who refinance using HARP are typically have a lower delinquency rate com- pared to those who are eligible for the program but choose not to use it, the FHFA says. Of all HARP refinances for underwater borrowers (those with a loan-to-value ratio greater than 105 percent), 28 percent resulted in 15-and 20-year mortgages. e FHFA noted that this method helps build equity for bor- rowers quicker than 30-year mortgages. e FHFA cautioned potential refinancers that "HARP will sunset on December 31, 2016." MICHIGAN Potestivo & Associates Expands with New Office Potestivo & Associates, a legal solutions provider for the real estate finance and credit industries headquartered in Rochester Hills, Michigan, has announced the opening of a new office in Downtown Rochester Hills. e Downtown Rochester Hills office offers state-of-the-art technology and is the firm's fourth location—their second in Roch- ester Hills. e firm also has offices in Grand Rapids, Michigan, and in Chicago, Illinois. Potestivo & Associates has been serving the real estate finance and credit industries for more than 25 years. is expansion, and the augmentation of the Potestivo & Associates team, will allow the firm to better service their clients' compli- ance and security requirements. "We look forward to being a part of the ongoing evolution of Downtown Rochester," said President and Managing Attorney, Brian A. Potestivo. "e new office has a new look— combining the new with the traditions that have made our firm a success." MISSOURI Rising Home Sales in Most Fed Districts Indicate 'Moderate' Improvement While tight inventory combined with increasing home prices have caused some con- cern about affordability as of late, the Federal Reservereported in its December Beige Book released Wednesday that housing markets improved at a "moderate" pace on balance since the previous Beige Book was issued in mid-October. Rising home sales in seven of the Fed's 12 districts—Boston, New York, Philadelphia, Cleveland, Richmond, Chicago, and Kansas City—were largely responsible for the Fed's re- ports of moderate growth in housing markets, though the Philadelphia district reported a "slow growth" market in which supply was at a low but stable level. e Boston, Cleveland, Richmond, and St. Louis districts all reported year-over-year declines in housing inventory, the Fed reported. Other contributors to the moderate improvement in housing markets were an increased demand for mortgage lending in sev- eral Fed districts, notably Richmond, Atlanta, St. Louis, and San Francisco; a slight decline in mortgage lending was reported in the Philadelphia district. Meanwhile, the Dallas and Richmond and Dallas districts reported rising demand for home equity loans and lines of credit, according to the Fed. e December Beige Book reported a modest to moderate pace of residential construction growth since the previous Beige Book was issued, with growth seen in the New York, Philadelphia, Cleveland, Atlanta, Chicago, St. Louis, and Kansas City districts. Residential construction in the Dallas and Minneapolis districts remained flat since the previous report, however. New York, Philadel- phia, and Chicago all reported improvements in residential real estate at a "mild" pace; how- ever, in New York the Fed's contacts indicated weak sales activity at the high end of the single-family home market, particularly the co-op and condo market in New York City. Overall, the 12 Fed districts reported that economic activity had increased at a "modest" pace in most regions since the previous Beige Book. Districts that reported modest economic growth were Cleveland, Richmond, Atlanta, Chicago, St. Louis, Dallas, and San Francisco. Michigan had the third- largest distressed sales share among states with 19.6 percent as of the end of September 2015, behind only Maryland (20.7 percent) and Florida (19.8 percent), according to CoreLogic. KNOW THIS

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