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» VISIT US ONLINE @ DSNEWS.COM Compiled by the DS News Staff FIVE MINUTES WITH DON ST. JOHN PRESIDENT AND COO OF HOME SERVICING PAGE 27 inside the journal // movers & shakers // on the web // the app spectrum Short Sales Positioned as Next Year's 'Primary Loss Mitigation Tool' Even though the number of foreclosure filings has risen dramatically in recent months in some parts of the country— specifically in judicial states—the ratings agency DBRS expects total foreclosure filings to show evidence of a steady decline in 2013 when compared to 2012. This is due to "the record number of servicers that are using short sales as their primary loss mitigation tool to prevent delinquent loans from entering foreclosure," the agency's analysts said in a research note issued Monday. The Office of the Comptroller of the Currency (OCC) found evidence of such a shift as early as 2012's first quarter. With the release of its Q1 mortgage performance report, the federal regulator noted that the number of home retention actions implemented over the January-to-March timeframe was down 36.7 percent from a year earlier, while the number of short sales increased 19.7 percent. New short sale actions completed in the first quarter totaled 59,996, according to the OCC's report, expected to delegate or automate their acceptance and counter offer More servicers are process to be more responsive to short sale bids. which covers about 60 percent of the first-lien mortgage population. Over the Q2 period, another 63,403 short sale actions were completed by the OCC's subject group. The OCC doesn't release its third- quarter mortgage performance data and mitigation numbers until December, but anecdotal evidence from those in the field suggests the increase in short sales has sustained. DBRS believes short sales will be an effective loss mitigation tool for curbing the industry's shadow inventory backlog of unsold REO properties. Short sales are an effective way to get the home sold without having to incur the cost of foreclosure, preparing the home for sale, paying a listing agent, and maintaining the property, therefore lowering loss severity, the agency's analysts noted. As a result, DBRS expects short sales to be one of the key loss mitigation techniques used in 2013 with more servicers delegating or automating their acceptance and counter offer process in order to be more responsive to short sale bids on properties. A look at facts you didn't know you couldn't live without The International Monetary Fund has cut its forecast for global growth to 3.3% in 2012 and 3.6% in 2013. 1 2 3 4 5 6 7 8 9 10 top10 inside the numbers Take a look data bits Rank* Metropolitan Statistical Area (MSA) Biggest Price Gains* Seattle – Tacoma – Bellevue, WA Projected to See Six-Month Forecast Phoenix – Mesa – Scottsdale, AZ Las Vegas – Paradise, NV San Francisco – Oakland – Fremont, CA Sacramento – Arden – Roseville, CA San Jose – Sunnyvale – Santa Clara, CA Washington, DC – Arlington, VA – Alexandria, VA Tucson, AZ Minneapolis, MN – St. Paul, MN – Bloomington, WI Fresno, CA Rank* Metropolitan Statistical Area (MSA) 41 42 43 44 45 46 47 48 49 50 Smallest Price Gains* Boston – Cambridge – Quincy, MA Projected to See Six-Month Forecast Nashville – Davidson – Murfreesboro, TN Rochester, NY 0.4% 0.3% 0.0% Hartford – West Hartford – East Hartford, CT -0.1% Philadelphia, PA – Camden, NJ – Wilmington, DE -0.6% Birmingham – Hoover, AL Charlotte – Gastonia – Concord, NC Memphis, TN Raleigh – Cary, NC Milwaukee – Waukesha – West Allis, WI -1.1% -1.4% -2.1% -2.1% -2.1% which account for more than half of the entire U.S. housing population. Source: Clear Capital. *Among 50 largest MSAs, Wells Fargo Securities' economics group forecasts commitment rates on conventional 30-year fixed-rate mortgages to hold below the 4% mark through at least 2014. 13 10.8% 10.7% 9.5% 8.9% 7.6% 6.8% 6.8% 6.7% 6.6% 6.0%

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