By Tony Garritano
What’s going on in the mortgage market? What trends should you be aware of? Tony tells you in this daily column.

Market Analysis: What Do We Really Know About Shadow Inventory?

*What Do We Really Know About Shadow Inventory?*
**By Tony Garritano**

***Estimates about how large the shadow inventory is and how long it will take to dispose of vary. What we know for sure is that the inventory is huge and it will put a crimp in industry recovery for some time. PROGRESS in Lending has learned that according to CoreLogic, the current residential shadow inventory as of October 2011 remained at 1.6 million units, representing a supply of 5 months. This was down from October 2010, when shadow inventory stood at 1.9 million units, or 7-months’ supply, but approximately the same level as reported in July 2011.  Currently, the flow of new seriously delinquent loans into the shadow inventory has been offset by the roughly equal flow of distressed (short and real estate owned) sales. Here’s what else the CoreLogic research revealed:

****CoreLogic estimates the current stock of properties in the shadow inventory, also known as pending supply, by calculating the number of distressed properties not currently listed on multiple listing services (MLSs) that are seriously delinquent (90 days or more), in foreclosure and real estate owned (REO) by lenders. Transition rates of “delinquency to foreclosure” and “foreclosure to REO” are used to identify the currently distressed non-listed properties most likely to become REO properties. Properties that are not yet delinquent but may become delinquent in the future are not included in the estimate of the current shadow inventory. Shadow inventory is typically not included in the official metrics of unsold inventory.

****Data Highlights:

****>> As of October 2011, shadow inventory remained at 1.6 million units, or 5-months’ supply and represented half of the 3 million properties currently seriously delinquent, in foreclosure or in REO.

****>> Of the 1.6 million properties currently in the shadow inventory (Figures 1 and 2), 770,000 units are seriously delinquent (2.5-months’ supply), 430,000 are in some stage of foreclosure (1.4-months’ supply) and 370,000 are already in REO (1.2-months’ supply).

****>> Florida, California and Illinois account for more than a third of the shadow inventory. The top six states, which would also include New York, Texas and New Jersey, account for half of the shadow inventory.

****>> The shadow inventory is approximately four times higher than its low point (380,000 properties) at the peak of the housing bubble in mid-2006.  A healthy housing market should have less than one-month’s supply of shadow inventory, which would be an easily absorbed stock of distressed assets with little or no discernable impact on house prices, unless the inventory was geographically concentrated.

****>> Despite 3 million distressed sales since January 2009, a period when home prices were declining at their fastest rate, the shadow inventory in October 2011 is at the same level as January 2009.

****>> Because shadow inventory is often concentrated in suburban and exurban submarkets, where distressed sales compete with new construction sales, it is one of the reasons why new home sales continue to be weak. In normal times, new home sales account for 12 percent of all sales, but they are currently running at 7 percent of all sales.

****>> Based on current estimates of the visible inventory (both distressed and non-distressed), the shadow inventory is approximately half of all visible inventory listings. For every two homes available for sale, there is one home in the “shadows” (Figure 3).

****“The shadow inventory overhang is a large impediment to the improvement in the housing market because it puts downward pressure on home prices, which hurts home sales and building activity while encouraging strategic defaults,” said Mark Fleming, chief economist for CoreLogic.

Tony Garritano
Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at tony@progressinlending.com.

Market Analysis: Ellie Mae Isn’t Wasting Any Time

*Ellie Mae Is Wasting No Time*
**By Tony Garritano**

***Usually when a technology vendor acquires another vendor you see a slow transition whereby eventually one product becomes more robust and the other is grandfathered. However, Ellie Mase is getting to work fast on making the most out of its acquisition of DataTrac. PROGRESS has learned Ellie Mae’s second major release of its Encompass360 mortgage management solution is now live. This release contains new functionality and enhancements designed to further increase compliance, efficiency and ease of use. It also introduces Encompass Originator, an integrated front-end technology solution specifically for users of DataTrac mortgage software. Here’s the scoop:

****The upgrade’s major enhancements include:

****>> Functionalities for complying with the new data delivery requirements, including the Uniform Loan Delivery Dataset (ULDD) and Uniform Collateral Data Portal (UCDP)

****>> Integration with DataTrac, through Encompass Originator

****>> New secondary marketing functionalities for Encompass360 Banker Edition clients

****>> New document recognition functionality with bar coding for all e-disclosure and closing documents

****>> New and expanded status online communications options

****>> Ability to process borrower credit cards in the appraisal solution center

****>> Numerous additional client-requested enhancements

****Encompass360 now supports ULDD requirements, enabling users to export one or more loan files to be submitted to the GSEs. The new UCDP service, which uses an integrated systems interface to the GSEs’ UCDP, allows users to submit electronic appraisal data files, receive status and findings, correct and modify appraisal file submissions, and request overrides should an appraisal not be accepted by the UCDP.

****This upgrade’s trade management and secondary marketing enhancements enable more flexibility with detailed viewing and tracking of mortgage-backed securities and assignment of trades. Rate lock and secondary registration enhancements include lock extensions and expanded functionality for buy side profit and price concessions.

****Among the many additional upgrades are enhancements to Encompass360’s electronic document management capabilities, which include additional bar coding, destination scanning from network scanners to eFolders, and eSigning of non-disclosure documents. New status online communications now further support and extend clients’ brands by enabling consistency and structure across outbound communications to borrowers and partners. Numerous compliance-focused changes have also been made to support USDA loans, and changes have been made to the HUD-1, the statement of denial, and other forms.

****Further, Encompass Originator provides single-click access between Encompass360 and DataTrac, creating a front-end/back-end origination solution built on the two technologies. With this integration, users of both solutions can now easily submit loans directly from Encompass360 to DataTrac, without having to re-key, import or export any data.

****Encompass Originator includes all of Encompass360’s front-end capabilities, including all the new upgrade enhancements. Now DataTrac clients can have access to Encompass CenterWise, Ellie Mae’s secure web and electronic document management service; a secure e-folder for paper-free document signing and exchange; numerous integrations with third party solution providers; easy-access customizable pipeline views; HUD integration; powerful tracking and alert systems; built-in compliance management tools designed to enhance RESPA and MDIA compliance; appraisal ordering and management, customer relationship management and more, all from the same company.

****“The industry’s changing regulations and procedures are putting a lot of new demands on lenders, and this upgrade provides the tools to respond to many of those demands, whether from regulators or investors,” said Jonathan Corr, COO of Ellie Mae. “At Ellie Mae, our clients feel comfortable about voicing their needs because they know we take action. This upgrade reflects the changing needs of our clients, while continuing our mission to build the most streamlined, easy-to-use technology for transacting the highest quality loans.”

Tony Garritano
Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at tony@progressinlending.com.

Market Analysis: The Impact Of HARP 2.0

*The Impact Of HARP 2.0*
**By Tony Garritano**

***I’ve been talking to a lot of people about HARP 2.0. Will it help? Will it hurt? Will it have any impact at all? The jury is out depending on who you talk to. Regardless, Urban Lending Solutions, a provider of residential and commercial outsource fulfillment and settlement services to the mortgage origination and servicing industry, has shifted internal resources to provide more support to lenders and servicers that will capitalize on the new streamlined Home Affordable Refinance Program (HARP).

****“This is going to be a great opportunity for the nation’s homeowners,” said Mike Forgas, President of Urban Lending Solutions. “The new guidelines will allow more borrowers to qualify and this will lead to an increase in refinance activity. Banks may not be staffed to handle this increase and they are reaching out to qualified partners to help support and streamline the HARP 2.0 refinance process. We have been very successful supporting our existing clients with the HARP process.”

****The original goal of the HARP program was to allow underwater borrowers to refinance. However, strict guidelines prevented many homeowners who wanted to refinance from qualifying. Under HARP 2.0, these restrictions have been relaxed and the processing has been streamlined. Many industry experts expect the program to result in a wave of new refinances. However, industry guidance from the former GSEs has thus far been sketchy, leading many lenders to seek out professional support for their upcoming HARP 2.0 programs.

****“This is an excellent opportunity for banks to meet their annual corporate diversity goals at the same time they significantly expand their refinance business, if they partner with a qualified Minority Business Enterprise,” said Thomas “T.J.” Lewis, Corporate Diversity and Business Development Executive for ULS. “We have a proven team that is already working with some of the nation’s largest lenders and servicers and we are an MBE. It makes us a perfect choice for this program.”

****“Our experienced team of mortgage professionals will allow us to help our lender partners move quickly to secure this new business,” said Penny Nelson, Vice President of Mortgage Services Operations for ULS. “We have Urban University, and a dedicated training team that allows us to get our staff up to speed very quickly on the bank’s technology platform.”

Tony Garritano
Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at tony@progressinlending.com.

Market Analysis: Tracking Acquisitions

*Tracking Acquisitions*
**By Tony Garritano**

***In recent weeks we’ve heard about a few acquisitions. My guess is that we’ll hear about more going forward. The market is tough and the weak are getting acquired by the stronger companies that are better positioned to become the next industry leaders. For example, PROGRESS in Lending has learned that TD Service Financial Corp., a provider of services to the mortgage industry, has acquired Security Connections, Inc. Here’s the scoop:

****The Idaho Falls, Idaho-based company provides outsource solutions to the mortgage banking industry. It will operate as a wholly-owned subsidiary of TD Service Financial Corporation, Inc., and retain its brand identity. Going forward, the firm will market itself as ‘Security Connections, a member of the TD Service Financial Family’.

****TD Service Financial Corporation, through its TD Service Company subsidiary, provides specialized services in the areas of default, lien release, assignments, and document retrieval through the use of custom software. Another subsidiary, Trustee’s Assistance Corporation, provides posting and publishing services.

****According to Dale L. Dykema, who started TD Service Company in 1964, the acquisition of Security Connections allows his company to offer an entirely new line of business.

****“This integration should represent a particularly compelling value proposition for our mortgage banking clients,” says Mr. Dykema, who still serves as TD Service Financial’s CEO and Chairman. “Because there’s such a natural fit for Security Connections’ services, I believe the whole of our combined company will represent more than than just the sum of its parts.”

****Security Connections offers a comprehensive line of file management services aimed at the mortgage banking industry. Focusing primarily on document imaging, long-term record storage and full service post closing solutions. In addition, the firm provides assignment processing, document retrieval, and lien release processing.

****“Operating under the larger TD Service Financial Corporation umbrella will allow Security Connections to reach a substantially larger marketplace,” said Karleen Maughan, the company’s founder. “More than that, the strength of our combined companies will provide access for their customers to additional lines of services.”

****In addition to TD Service Company and Security Connections, California-based TD Service Financial Corporation is the parent of TD Service Company of Arizona, TD Service Company of Washington, and Trustee’s Assistance Corporation. The firm was recently awarded the LPS Default Solutions Performance Excellence Award, and has been top-rated since 2009.

Tony Garritano
Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at tony@progressinlending.com.

Market Analysis: A New LOS Debuts

*A New LOS Debuts*
**By Tony Garritano**

***A New LOS has hit the market. Automated underwriting and loan pricing technology provider PriceMyLoan has launched LendingQB, a 100% web browser-based mortgage lending platform. “With LendingQB, we believe we are doing more than just providing a ‘cloud computing’ loan origination system,” said Binh Dang, LendingQB’s managing partner. “We believe we are fundamentally changing the way that lenders use technology.” Here’s the scoop:

****Since 2004, PriceMyLoan has been providing lenders with technology to automate the underwriting and pricing of their loans. Over the past seven years, PriceMyLoan has had the unique opportunity to work closely with their clients and carefully observe their utilization of technology. “Each one of our clients had a valuable LOS story to tell us,” said Gigi Campbell, national sales director for LendingQB. “What became evident is their desire for a ‘one-stop shop’ lending system, and a system that would adapt to the way they work.”

****To that end, LendingQB was built to include a list of features, such as electronic documents with e-signatures; a full complement of tools for loan processing, underwriting, secondary marketing, closing and post-closing; and specialized tools for wholesale and retail environments, such as broker website portals and online consumer loan applications. Naturally, PriceMyLoan powers the automated underwriting and loan pricing aspects of the LendingQB platform.

****But the most innovative feature of LendingQB is not their technology, but the way that they work with their clients, says PriceMyLoan. “Lenders need more than just a piece of software,” said Campbell. “They need a technology partner that is willing to listen and respond to their specific needs. That’s the true value of our web-based model. We can reach directly into a client’s system and instantly deploy any changes they request. It creates a truly customized experience that molds to their particular workflow.”

****LendingQB positions itself as more than a technology provider; they want to be an active part of a lender’s team. “As a lending quarterback, we want to take the field with our clients and help lead them to success,” said Campbell. “Give us the ball and we’ll execute the plays that lead to higher productivity, higher profits and better business performance overall.”

****We at PROGRESS in Lending will keep you updated on the status of this new development.

Tony Garritano
Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at tony@progressinlending.com.

Market Analysis: We All Need A Good Laugh Once In A While

*We All Need A Laugh Once In A While*
**By Tony Garritano**

***Let’s face it, things aren’t great going into the holidays. But that doesn’t mean that your spirits should be low. Here’s something to cheer you up: Mortgage Cadence, LLC has produced a series of short films under the guise of “The Lender Blender” to the public. This series of shorts irreverently illustrates the dangers that come with mismanaged processes in the midst of an industry overhaul.

****Contrary to the light-hearted nature of these films, Mortgage Cadence is a solution-oriented system that continuously seeks to help lenders increase their return on investment and bottom line while maintaining compliance. The film portrayals of disarray and lack of compliance serve as a magnifying glass on some of the issues facing lenders today. Mortgage Cadence’s technology platform helps lenders minimize risk through the use of advanced technology. The product suite is proven to increase employee productivity through the elimination of paper and the creation of custom data-driven workflows.

****Along with a modern sense of humor, the videos strive to highlight the asset Mortgage Cadence can be for companies struggling with their lending processes. “The need for workflow automation to streamline processes and reduce risk is more important now than ever before,” stated John Levonick, chief legal and compliance officer for Mortgage Cadence. “Outdated processes and lack of compliance is unsuitable for a sustainable business where the risk of buybacks has never been greater. Despite the comedic nature of The Lender Blender, I hope it inspires lenders to reevaluate their lending practices to determine how they can increase efficiency while ensuring compliance.”

****By offering seamless automated workflow that is not only efficient and dynamic but also comes with a team of dedicated legal resources and subject matter experts, Mortgage Cadence can take your business from merely surviving to thriving. Staying compliant with the most recent regulations can feel like an added pressure, which is precisely why we are dedicated to focusing on the rules so you can focus on growing your business.

****You can find the video series located at thelenderblender.com or http://www.youtube.com/thelenderblender. The videos are also on the PROGRESS in Lending iPad app that you can download for free on iTunes. I know you need a good chuckle. These videos will do the trick.

Tony Garritano
Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at tony@progressinlending.com.

Market Analysis: Don’t Sit Back, Act

*Don’t Sit Back, Act*
**By Tony Garritano**

***Okay, the column today might not be for everyone, but I am so upset right now. Everyone who knows me knows how passionate I am about mortgage automation. Everyone who knows me also knows that I love the singing competition shows. Last night both of my passions came together and really made me think. Here’s what I concluded:

****First, too often lenders are failing today because they are not acting. The regulatory environment alone calls for lenders to automate. I scratch my head when I hear lenders aren’t doing something as simple as e-delivery. That’s a no-brainer. My mouth drops to the floor when I hear that some lenders are still using e-mail to send sensitive documents. WOW! You have to act Mr. Lender. You have to automate.

****Second, I’m a proud Dad of two great little boys. My boys are just amazing, if I do say so myself. However, I’ve always wanted a little girl. This year on the X-Factor (the new Simon Cowell singing competition) I have fallen in love with 14-year-old Rachel Crow. She was a baby born addicted to drugs, left behind by her birth parents. This nice couple adopted her and really gave her a second chance at life. Watching Rachel has touched my heart. Last night because of the inaction of one of the judges Rachel was sent home. I was, and still am, shocked and angry.

****Last night, for me, was just another example of how bad things happen when you don’t act. So, I hope lenders are reading this. Don’t delay. Now is the time to improve your process by moving to automate.

****And by the way, check this out:

httpv://www.youtube.com/watch?v=TvdN945-GPU

****Don’t tell me that this little girl isn’t amazing. She is the X-Factor.

Tony Garritano
Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at tony@progressinlending.com.

Market Analysis: Are You Confused?

*Are You Confused?*
**By Tony Garritano**

***I have been pleasantly surprised at to how well the industry has responded to the new appraisal rules. I remember the issues with RESPA. And loan officer compensation was tough for most to comply with when it hit earlier this year, too. I think the ease of compliance this time is due in part to how vendors have responded with quality educational pieces. For example, Global DMS did a great white paper. If you’re still confused, here’s how they describe all the changes:

****“UAD stands for Uniform Appraisal Dataset, and is a component of the Uniform Mortgage Data Program (UMDP). UCDP is the Uniform Collateral Data Portal, and is also a component of the UMDP. While these programs will work in conjunction with each other, there are distinct differences in the programs and the requirements.

****“The GSEs define the UAD program as:

****“All fields required for an appraisal submission for specific appraisal forms and standardizes definitions and responses for a key subset of fields. The UAD-compliant file can be delivered in either a PDF or an XML file. However the UAD program DOES NOT need to be delivered in an XML format. The MISMO 2.6 XML file is required for the UCDP, although you can submit a PDF file to the portal and the information can be extracted into an XML file for a fee.

****“The GSEs define UCDP as:

****“A single portal for the electronic submission of appraisal data files. Lenders will be required to use the UCDP to submit electronic appraisal data files that conform to all GSE requirements, including the Uniform Appraisal Dataset (UAD) when applicable, before the delivery date of the mortgage to Fannie Mae and Freddie Mac. The general UAD process will be driven by the appraisers. The appraiser will be responsible for delivering the appraisal file in the required UAD format. The delivery to the portal will be driven by the lender. The lender can deliver the file to the GSEs, or have an Appraisal Management Company (Agent) deliver the file on their behalf.”

****It was a great white paper. To read more go to the Global DMS website or the PROGRESS in Lending iPad app. It’s a great read!

Tony Garritano
Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at tony@progressinlending.com.

Market Analysis: We Live in A Data-Centric World

*We Live In A Data-Centric World*
**By Tony Garritano**

***With all of the emphasis on loan quality and transparency, the GSEs are now mandating a more data-centric approach. This trend is just going to continue. Investors need complete visibility into each and every loan, and data makes that possible. To this end, vendors are stepping up to make it easier for lenders to embrace the data. For example, ClosingCorp, an independent, real estate closing cost data and technology company that develops online data services for mortgage lenders, real estate professionals and consumers, has launched DART, a data service that provides recording fee and transfer tax amounts for title and settlement professionals to use for closing transactions. Here’s the scoop:

****DART delivers access to accurate recording fee and transfer tax information for any address in the U.S., and reflects unique requirements based on geographic location. DART’s highly sophisticated data engine also calculates Buyer/Seller splits, commonly called “who pays” rules, and has a strength or confidence level based on collected data of statutory and customary practices by geographic location.

****“Since title and settlement agents ultimately pay and file recording fees and transfer taxes, having timely access to the most reliable data available is critical,” said Paul Mass, president of ClosingCorp. “ClosingCorp now represents the only true “sole source” provider of all actual closing cost data that title and settlement professionals need. This additional offering complements our complete line of data solutions, which includes everything from title and settlement fees, to home inspection, home warranty, and other “Block 6” fees. We are pleased to enter the market and provide a very competitive, alternative data source to title and settlements agents who depend on accurate recording fee and transfer tax amounts to close a residential real estate transaction.”

****ClosingCorp’s initial version of DART will deliver the recording fees and transfer tax information via web services, enabling title/settlement companies and real estate solutions providers to seamlessly integrate the data into their current workflow. ClosingCorp provides a DART API to facilitate easy implementation of the service. The data is returned via XML for use within the requesting application.

Tony Garritano
Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at tony@progressinlending.com.

Market Analysis: Here’s Why We Need To Automate

*Here’s Why We Need To Automate*
**By Tony Garritano**

***I always preach about the benefits of automation. But I preach a lot. My kids say I’m a broken record when I talk to them about the value of doing well in school, for example. However, when it comes to automation, and the value of a good education, I’m right on both accounts and the data backs me up. PROGRESS in Lending has been told that CoreLogic released its October Home Price Index (HPI) which shows that home prices in the U.S. decreased 1.3 percent on a month-over-month basis, the third consecutive monthly decline. Let’s face it: with home prices continuing to decline lenders need to automate to be as efficient as possible and also to offer first-class service. Here’s what else the HPI found:

****According to the CoreLogic HPI, national home prices, including distressed sales, also declined by 3.9 percent on a year-over-year basis in October 2011 compared to October 2010. This follows a decline of 3.8 percent in September 2011 compared to September 2010. Excluding distressed sales, year-over-year prices declined by 0.5 percent in October 2011 compared to October 2010 and by 2.1 percent in September 2011 compared to September 2010. Distressed sales include short sales and real estate owned (REO) transactions.

****“Home prices continue to decline in response to the weak demand for housing. While many housing statistics are basically moving sideways, prices continue to correct for a supply and demand imbalance. Looking forward, our forecasts indicate flat growth through 2013,” said Mark Fleming, chief economist for CoreLogic.

****Highlights as of October 2011:

****>> Including distressed sales, the five states with the highest appreciation were:  West Virginia (+4.8 percent), South Dakota (+3.1 percent), New York (+3.0 percent), District of Columbia (+2.4 percent) and Alaska (+2.1 percent).

****>> Including distressed sales, the five states with the greatest depreciation were: Nevada (-12.1 percent), Illinois (-9.4 percent), Arizona (-8.1 percent), Minnesota (-7.9 percent) and Georgia (-7.3 percent).

****>> Excluding distressed sales, the five states with the highest appreciation were: South Carolina (+4.6 percent), Maine (+3.1 percent), New York (+3.1 percent), Alaska (+2.9 percent) and Kansas (+2.8 percent).

****>> Excluding distressed sales, the five states with the greatest depreciation were: Nevada (-8.8 percent), Arizona (-7.0 percent), Minnesota (-5.7 percent), Delaware (-3.9 percent) and Georgia (-3.6 percent).

****>> Including distressed transactions, the peak-to-current change in the national HPI (from April 2006 to October 2011) was -32.0 percent.  Excluding distressed transactions, the peak-to-current change in the HPI for the same period was -22.4 percent.

****>> Of the top 100 Core Based Statistical Areas (CBSAs) measured by population, 78 are showing year-over-year declines in October, two fewer than in September.

****If this data doesn’t scream out: “This industry needs to automate!” I don’t know what it will take to get this idea across.

Tony Garritano
Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at tony@progressinlending.com.