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confirmed as a preferred partner by the National Association of Federal Credit Unions (NAFCU) to provide mortgage insurance to its more than 800 affiliated credit unions. The preferred partner designation is awarded after a review process conducted by a committee of credit union executives. Genworth's confirmation is a renewal of the preferred provider recognition the company received in 2011. Capital One to Pay $12M for Alleged SCRA Violations Virginia, agreed to pay approximately $12 million to settle a lawsuit alleging the bank did not uphold certain protections in the Servicemembers Civil Relief Act (SCRA). According to the Justice Department, viola- tions included wrongful foreclosures and improper denials of the 6 percent annual interest limit the SCRA requires for active members of the military. Capital One will pay about $7 million in Capital One, headquartered in McLean, J. Woodard, the bank's CEO and chair- man; his son Troy, who was employed by a wholly owned subsidiary of the bank as a VP and mortgage loan specialist; EVPs and loan officers Simon Hounslow and Stephen G. Fields; and Dwight A. Etheridge and Thomas E. Arney, two "friends" of the bank who benefitted from the fraud. All men are charged with conspiracy to The 25-count indictment names Edward Washington rank: 32 90+ Day 4.44% 3.54% 25.34% commit bank fraud. The individuals face varying charges, including false entry in a bank record, unlawful participation in a loan, false statement to a financial institu- tion, and misapplication of bank funds. Each charged contained in the indictment carries a maximum penalty of 30 years in prison if convicted. The indictment alleges that many of the damages to servicemembers, including at least $125,000 in compensation for service- members who lost their home to a wrongful foreclosure. Another $5 million will be used to compensate servicemembers who were shorted on SCRA benefits for other con- sumer loans and accounts. Eligible service- members will be identified and compensated on accounts dating back to July 15, 2006. Capital One agreed to pay more than the $12 million settlement amount if ongoing, independent audits reveal violations in ac- counts that the company recently acquired from HSBC or ING Direct. Capital One also adopted a new policy of offering a 4 percent interest rate to qualifying service- members. Bank Executives, Borrowers Indicted for Fraud were indicted by a federal grand jury for their alleged role in a massive fraud scheme that led to the biggest Virginia bank collapse since 2008. The accused are charged with mask- ing non-performing assets at the Bank of the Commonwealth in Norfolk, to the detriment of the bank and its eventual failure in 2011, costing the FDIC an estimated $268 million. Top executives and favored borrowers 140 bank's loans were funded and administered with no regard for industry standards or the bank's own internal controls. By 2008, the volume of the bank's troubled loans and foreclosed real estate increased, and from 2008 to 2011, bank insiders allegedly hid its true financial condition to avoid any negative impact on investor and customer confidence. The indictment also alleges that bank 90+ Day 6.31% year ago 5.07% percent point change 24.35% 3.41% Top Core-Based Statistical Area LONGVIEW, WA 90+ Day 4.41% year ago 3.22% percent point change 37.21% 3.99% note: The 90+ Day delinquecy rate is the percentage of outstanding mortgage loans that are 90- plus days delinquent. The foreclosure rate is the percentage of outstanding mortgage loans currently in insiders overdrew accounts to make loan payments, used funds from related entities to hide the institution's troubled assets, admin- istered change-in-terms agreements to make loans appear current, and extended new loans or additional principal on existing loans to cover payment shortfalls. In addition, the accused allegedly provided preferential financing to troubled borrowers to purchase bank-owned properties in order to convert non-earning assets to earning assets. The bank lost nearly $115 million from 2008 to 2011. The forfeiture notice in the indictment attributes at least $71 million as illegal proceeds of the fraud. STAT INSIGHT 14,084 REOs sold in Virginia in the 12 months ended in June. Source: CoreLogic foreclosure. State rank is based on the June 2012 foreclosure rate. All figures are rounded to the nearest decimal. The unemployment rate reflects preliminary June 2012 figures released by the Bureau of Labor Statistics. All other data courtesy of Lender Processing Services. 2.81% Delinquency Rate june 2012 2.92% Foreclosure Rate 3.66% Delinquency Rate Foreclosure Rate june 2012 2.56% year ago 2.64% percent point change -3.29% Top County PIERCE COUNTY Delinquency Rate june 2012 3.79% Unemployment Rate 8.3% 9.3% -10.8% Foreclosure Rate IN THE NEWS High-Priced Transactions Drive Seattle Home Sales in June year-over-year increases in Seattle home sales, according to DataQuick. Although sales in some lower price ranges declined, increased activity for higher-priced homes made up for the drops. June's total sales rose 4.6 percent in the June marked the 12th straight month of Seattle metro compared to the previous month and were up 10.5 percent from June 2011, DataQuick reported. A total of 4,886 new and resale houses closed escrow during the month. The increase in sales was attributed to activity above the $200,000 price mark. While the number of homes that sold for less than $200,000 fell 1.0 percent from June 2011, sales above $300,000 rose 24.3 percent, and sales from $200,000-$600,000 rose 14.3 percent. The number of homes sold in the

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