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October, 2012

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Lots of other national fi eld service providers talk about quality ... But ask them about their claims against their liability insurance ... And they get that sinking feeling. National Field Network 4581 Route 9, Suite 100 Howell, NJ 07731 732-276-5563 www.NationalFieldNetwork.com LPS EXAMINES NEGATIVE EQUITY AND ITS IMPACT ON CURRENT LOANS underwater, according to Lender Processing Services' (LPS) September release of the Mortgage Monitor report. In states where the percentage of current loans sitting underwater is extremely high, the share of new problem loans is also higher, the company noted. For example, the state with the highest Eighteen percent of current loans remain percentage of new problem loans in July was Nevada, where 54.7 percent of current loans were underwater. Florida had the second highest percentage of new delinquencies, 36 between high loan-to-value ratios (LTV) and the likelihood of becoming a new problem loan. For loans that had an LTV greater than 150 percent, 4.4 percent went from being cur- rent to delinquent during the month of July. For loans with an LTV of 110-120 percent, 2.2 percent became new problem loans. "As negative equity increases, we see cor- LPS also examined the relationship and 33.1 percent of its current loans were in a negative equity position. Arizona and Georgia posted the third and fourth high- est new delinquency rates, with their current-to-underwater ratios at 28.4 percent and 42.8 percent, respectively. Florida, two of the states with the highest percentage of underwater borrowers, more than three percent of borrowers who were up- to-date on their payments are 60 or more days delinquent six months later. This suggests that further home price declines—should they oc- cur—could jeopardize recent improvements." Overall, LPS says the delinquency rate for NFN keeps clients afl oat with its stellar record of ZERO claims last year. RISK IS A SERIOUS MATTER. Let National Field Network navigate the treacherous waters of default for you. July was 7.03 percent, a yearly drop of 11 per- cent and a 30 percent decline from the January 2010 peak. July saw about 186,000 foreclosure starts, down 10.5 percent annually, but up 7.1 percent compared to the previous month. There were about twice as many foreclosure starts as fore- closure sales or liquidations, which numbered around 93,000. The percent of inventory in foreclosure stood at 4.08 percent in July, LPS reported, mostly unchanged both monthly (-0.2 percent) and annually (-0.9 percent). At 6.46 percent, foreclosure inventory in responding increases in the number of new problem loans," explained Herb Blecher, SVP of LPS Applied Analytics. "In Nevada and judicial states remained elevated compared to non-judicial states (2.38 percent). Foreclosure sales were also much lower in judicial states, where 2.09 percent of foreclosure inventory went to sale compared to 6.71 percent in non- judicial states.

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