November 2012

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LOCAL EDITION ANALYTICS Home Sales Up Annually in Connecticut THOUGH MEDIAN PRICING IS DECLINING IN THE STATE, HOME SALES ARE ON THE UPTICK, RISING BY NEARLY 12 PERCENT YEAR-OVER-YEAR. CONNECTICUT // Connecticut home sales improved in August, while the state's median sales price told a different story, a report from the Warren Group revealed. Single-family home sales totaled 2,583, an 11.9 percent increase from August 2011. The August total is also the fourth consecutive month sales stayed above the 2,000 mark. Year-to-date, Connecticut home their mortgage debt in exchange for advance fees. As a result of his alleged deceit, homeowners' financial condition worsened, and for some, the opportunity to participate in legitimate loan modification programs such as the government-sponsored Home Affordable Modification Program was lost," said Christy Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP). If convicted, Tikal faces a sen- sales have improved 12.9 percent with 16,217 sales compared with 14,363 from January to August 2011. "Strong home sales have shown once again that the housing market's future looks promising," said Warren Group CEO Timothy M. Warren Jr. "Even though we are comparing to a slow market in 2011, the 12 percent increase is a promising indicator." Activity for the median sales investigation by SIGTARP, IRS' Criminal Investigation divi- sion, the California Department of Justice, and the Stanislaus County District Attorney's Office. It is a joint prosecution by the United States Attorney's Office for the Eastern District of California and the California Attorney General's Office. "As the foreclosure crisis tence of up to 30 years in prison. The case is the product of an price of single-family homes was unchanged in August, remaining at $255,000. Year-to-date, the median price dropped, falling 4 percent to $240,000 compared with $250,000 during the same period a year ago. Warren focused on the poten- tial positive outcome from the falling home prices, stating, "In past housing market recoveries, we've seen sales volume increase before prices followed. Perhaps these low prices will lure even more buyers into the market and bring a sustained recovery." Connecticut condominium for Connecticut condos declined 11 percent to $160,000 in August, down from $180,000 a year ago. The year-to-date median price decreased 8.6 percent from $175,000 a year ago. Arrest Made in $3.1M Mortgage Fraud Case sales in August improved to the highest level so far this year, in- creasing 15 percent with 649 sales compared with 564 a year ago. Year-to-date condo sales are higher by 5.8 percent compared with the same period last year. The median sales price of con- dos also fell despite the increase in sales. The median sales price 64 | THE M REPORT NAILED FOR MAIL FRAUD, A SCAM ARTIST WHO HELMED A MULTISTATE, MORTGAGE- RELATED SCHEME HAS BEEN TAKEN INTO CUSTODY. CALIFORNIA // A California man was placed under arrest in early October, on allegations of mail fraud conducted in conjunc- tion with his role in running a multistate scam that bilked homeowners out of more than $3.1 million. Brentwood, California, was ar- rested at his home for a com- plaint that he scammed more than 1,000 homeowners out of millions of dollars in a fraudu- lent foreclosure rescue scheme. According to court documents, Alan David Tikal of Tikal operated a large-scale mortgage rescue scam that began in January 2010 and continued to the present. He allegedly convinced homeowners that he could work out their mort- gage debt and replace it with a lower debt to his own company, KATN Trust. Having been instructed to tion duped victims with false claims of drastically lowering ignore all correspondence from their original lenders, victims paid thousands of dollars in up- front fees and then made regular payments on their new loans. "As alleged, Tikal's opera- continues, we are seeing a rise in scams that target strug- gling homeowners," said State Attorney General Kamala Harris. "These predators rob innocent families of their life savings and their piece of the American dream. I am thankful for the fine work of the California Mortgage Fraud Strike Force and of our U.S. Department of Justice col- leagues in cracking this case." Which State Pays the Highest Effective Mortgage Rates? CALLING IT "ONE OF THE MOST SIGNIFICANT MISPRICING OF RISKS" IN THE MARKETPLACE, OPERA SOLUTIONS TARGETS RATES IN ONE SOUTHWESTERN STATE. TEXAS // According to a report published by Opera Solutions, the Lone Star State pays one of the nation's highest weight average coupon rates on its mortgages. The information comes as a surprise, considering Texas is one of the best-performing housing markets since the credit crisis started. Opera said the incongru- ity represents "one of the most SECONDARY MARKET ANALYTICS SERVICING ORIGINATION

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