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State PR E S ENTS ofAffairs TOP NEWS Forty-nine participating states and the District of Columbia received $2.5 billion of the $25 billion national mortgage settlement to mitigate foreclosures, stabilize communities, and prevent financial fraud. As of mid-October, less than half of the states' money was being used for housing initiatives as intended, according to the nonprofit advocacy group Enterprise Community Partners, Inc. States announced plans to spend $966 million of the settlement money on housing- and foreclosure-related activities. State governments diverted $988 million, funneling the money instead to their own general funds or toward non-housing ventures. Texas and Florida hold most of the remaining $588 million that has not yet been allocated. In a number of states—like Ohio, Tennessee, and Connecticut—Enterprise says settlement funds have begun to flow as intended. While the majority of states do plan to use most of their funds for housing-related activities, Enterprise says it's the largest recipients—including California, Florida, and Texas—that are not currently addressing their local housing issues with the settlement money. The nonprofit's study revealed six states have deviated completely from the agreed-upon uses of the funds, allocating zero percent to housing: Alabama, California, Georgia, Missouri, New Jersey, and South Carolina. Note: The state-by-state trends are based on a compilation of August 2012 real estate public records data and proprietary mortgage loan performance transactions provided by Lender Processing Services, Inc. as well as a preliminary unemployment rate for August 2012 based upon public information from the Bureau of Labor Statistics. Lender Processing Services, Inc. (LPS) is a provider of mortgage and consumer loan processing services, mortgage settlement services, default solutions, and loan performance analytics, as well as solutions for the real estate industry, capital markets investors, and government offices. Formed from a 2008 spin-off, LPS' predecessor companies date back nearly half a century to the early beginnings of computing and statistical services. LPS' high-performance technology, robust data, innovative services, and award-winning customer support are why most of the nation's top 50 banks have chosen LPS to provide the solutions they need in today's competitive marketplace. To learn more about LPS visit lpsvcs.com.