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12 BANKRUPTCY FILINGS RISE IN FEBRUARY; ALABAMA, TENNESSEE SEE MOST e number of bankruptcy filings nationally rose in February, according to the February 2017 Bankruptcy Trends report by Epiq Systems. Overall, Epiq reported 58,336 national filings last month—up from 54.574 filings in January. February's totals, however, were down from 64,712 filings a year earlier. e month's numbers continue a trend of total national filings for the month declining with each passing February. Peak filings occurred in 2011, when there were 109,614 filings that February. February's totals followed January's unusual bankruptcy filings, which dropped 46 percent from December's but were up 5 percent from the prior January. National bankruptcy filings at the end of last year were also up 6 percent year-over- year for the first time in half a decade. According to Epiq's AACER data, the United States has seen a cumulative 112,125 bankruptcies this year, though the end of February. at's an increase of 5 percent compared to this time a year ago. Filings per capita averaged 2.19 filings per 10,000 population. Fifty-nine percent of filings were 7 Ratio bankruptcies. Alabama and Tennessee were again ranked first and second in the number of filings per 10,000. So far in 2017, Alabama filed 5.54 bankruptcies per 10,000. at's largely flat, at a 0.06 percent decrease compared to last year. Tennessee filed 5.23. bankruptcies per 10,000, down 0.34 percent from a year ago. North Dakota has seen the biggest percentage increase in filings compared to this time a year ago. North Dakota reported 111 overall filings, 85 percent higher than in January. Conversely, Rhode Island saw a 22-percent drop. To date this year, Rhode Island has filed 313 bankruptcies. e District of Columbia, with 102 filings, saw a 21-percent decrease. Louisiana, however, led states with the largest drop in filings over 1,000. Cumulatively in 2017, Louisiana has filed 1,897 bankruptcies; February saw an 11-percent decrease in overall filings. California continued to have the most overall filings. By the end of February, California filed 10,401 this year, down a quarter of a percent from a year ago. Illinois' 7,792 filings cumulative this year placed the state second in overall filings. ose were down nearly a half-percent compared to a year ago. Businesses filed 2,797 filings in 19 filing days in February. at's 147 filings per day, and all numbers were down from January. ey were also down from the 153 filings per day in February 2016. Epiq Systems is a leading global provider of technology-enabled solutions for electronic discovery, bankruptcy, and class action administration. It has locations in the United States, Europe, and Asia. FREDDIE MAC PREDICTS 25-PERCENT DROP IN SALES Due to declining refinances and rising mortgage rates, originations will drop more than 25 percent this year, according to a recent outlook report from Freddie Mac. Released in March, the outlook predicted that national growth and employment improvements won't be enough to stifle rising interest rates in 2017, especially as the Fed hints at future rate hikes down the line. "e housing market posted strong gains in 2016," the report stated. "Total home sales of just over 6 million units marked the largest annual growth in almost 10 years, and mortgage originations reached $2.1 trillion. However, rising mortgage rates will weigh on the market going forward, and mortgage originations will drop a little over 25 percent in 2017, almost exclusively as the result of plummeting refinances." In Q 4 2016, the nation saw a 1.9 percent jump in GDP growth, and as of February, the Consumer Price Index increased 2.7 percent over the year. Unemployment also dropped 4.7 percent, and nonfarm employment rose by more than 230,000 jobs. According to Freddie Mac's outlook, home prices are outpacing income growth significantly, and that's putting a home purchase out of reach for many citizens. "Since January 2000, home prices have risen a bit faster than incomes, though recently home price growth has outpaced income growth by a wider margin," the report stated. "But house prices have accelerated in recent years while per capita disposable income growth has been more stable. For example, in 2016, house prices rose 6.2 percent while per capita disposable income increased 3.4 percent." Come spring, this disconnect could block many potential homebuyers from the market, the report stated. "As we get into the spring selling season, we expect affordability to start to bite in many markets pushing some prospective buyers to the sidelines and contributing to a modest decline in total home sales in 2017 relative to 2016." In total, Freddie Mac predicts total 2017 home sales to hit around 5.9 million. Appraisal values were 1.77 percent lower than homeowner estimates in March. Source: Quicken Home Price Perception Index STAT INSIGHT 1.77%

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