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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 According to ATTOM Data Solutions' Year-end 2016 U.S. Home Equity & Underwater Report, 5.4 million U.S. homes were deemed seriously underwater at the close of 2016. Existing home sales are expected to climb to 5.54 million in 2017, according to the National Association of Realtors' December Pending Home Sales Index. HUD FINDS ITS OWN FAULTS INSIDE THE JOURNAL // MOVERS & SHAKERS // ON THE WEB // THE APP SPECTRUM TAKE A LOOK INSIDE THE NUMBERS D ATA B I T S Source: ATTOM Data Solutions Year-End 2016 Foreclosure Market report Source: ATTOM Data Solutions Year-End 2016 Foreclosure Market report YEAR END ROUNDUP—STATES WITH THE HIGHEST AND LOWEST PERCENTAGES OF FORECLOSURE FILINGS IN 2016 1 New Jersey 1.86% 2 Delaware 1.51% 3 Maryland 1.37% 4 Florida 1.18% 5 Illinois 1.10% 6 Nevada 1.09% 7 South Carolina 0.92% 8 Connecticut 0.91% 9 Ohio 0.89% 10 New Mexico 0.78% Cities Percentage Ranking THE LOWEST 1 North Dakota 0.06% 2 South Dakota 0.09% 3 West Virginia 0.12% 4 Montana 0.17% 5 Vermont 0.16% 6 Alaska 0.26% 7 Mississippi 0.27% 8 Nebraska 0.30% 9 Kansas 0.33% 10 Wyoming 0.34% Ranking Cities Percentage PAGE 14 Chief Economist, Stifel Fixed Income ASK THE ECONOMIST WITH Dr. Lindsey Piegza A recent internal HUD audit found the department failed to follow its own required clearance procedures when making changes to Federal Housing Administration (FHA) programs. e report issued by HUD's Office of Inspector General (HUD-OIG) found that HUD's Office of Single Family Housing didn't always pursue the required developmental clearance before posting draft documents or directives in final form. OIG claims that by posting documents without departmental clearance, the public can't be assured of their accuracy or that draft directives would actually be pursued. "When departmental clearance was pursued, HUD did not always ensure that key officials reviewed the documents before issuance," HUD-OIG said. "is condition occurred because HUD did not have adequate controls over the directives process. Specifically, HUD did not implement clearly understood and updated guidance for directives and did not adequately monitor its clearance tracking system." e OIG said significant policy information was distributed without proper review and clearance, which as a result undermined the intent and integrity of the process. e documents HUD posted without clearance were intended to solicit public comment: Loan Quality Assessment Methodology, the Addendum to Uniform Residential Loan Application, and the Single-Family Housing Policy Handbook. e audit found an additional 10 more documents and policies were posted for public review without proper departmental clearance. "HUD did not implement clearly understood and updated guidance for directives and did not adequately monitor its clearance tracking system," OIG said. "As a result, significant policy information was distributed without proper review and clearance, which undermined the intent and integrity of the process. is action effectively bypassed the required review by other HUD offices, including OIG, which had questioned or opposed document policies in some cases." e Office of Inspector General recommended HUD to go back and obtain clearance for the 13 total documents and policies released and recall those that can't be cleared, as well as updating its clearance tracking system and implement controls and appropriate policies to ensure a similar breakdown doesn't occur in the future. "When departmental clearance was pursued, HUD did not always ensure that key officials reviewed the documents before issuance." THE HIGHEST

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