Tag Archives: CoreLogic

The depreciation of home values over the past half-decade has left millions of mortgage borrowers owing more than their home is worth -- 10.7 million, according to CoreLogic. The company's latest negative equity study found 22.1 percent of all residential properties with a mortgage were underwater as of the end of September. That's down from 22.5 percent - or 10.9 million - at the end of the second quarter, but CoreLogic says the number remains high and makes borrowers more vulnerable to economic shocks such as job loss or illness.

CoreLogic has announced a new set of services designed specifically to address the anticipated increase in refinance activity expected from revisions to the Home Affordable Refinance Program (HARP). Many lenders are expected to look to third-party providers to help them manage the expected spike in mortgage refinancing. CoreLogic says its new HARP 2.0 offerings will combine the company's data and analytics with experienced teams of outsourcing professionals to improve operational pull-through.

The third quarter of 2011 saw a net increase of 2,738 mortgage-related jobs, according to recent industry data. This increase is the first recorded in five quarters. The recent increase in refinances encouraged by remarkably low interest rates sparked a demand for loan originators and processors, while continuing high levels of delinquencies and foreclosures bolstered the need for servicing staff. The 2,738 gain compares to a net loss of 464 jobs in the previous quarter and a loss of 936 jobs a year ago.

Estimates of the industry's shadow inventory vary widely, but one thing analysts do agree on is that the overhang is massive and will likely weigh on market dynamics for years to come. Measurements of soon-to-be repossessed and foreclosed homes that have yet to hit the market range from 1.6 million to 8.2 million. Capital Economics' assessment falls in the middle of that range, and the company's analysts say if anything, theirs is probably an underestimate. They put the industry's shadow inventory at 4.3 million homes.

RE/MAX has deployed CoreLogic's HomeStandings technology, which is configured with a reporting component that the companies say can help agents quickly identify potentially profitable foreclosed properties that are eligible for resale. The HomeStandings report combines property, neighborhood, and market characteristics to provide a complete local understanding of a home's value, marketability, and rent potential. HomeStandings then generates a grade for each property, enabling RE/MAX agents to assess the overall purchase quality of a home.

CoreLogic released its latest market analysis of residential property values Monday. The company's index shows U.S. home prices fell another 1.1 percent between August and September. It marks the second consecutive monthly decline recorded by CoreLogic and signals price depreciation is deepening. The company's previous report documented a 0.4 percent drop between July and August. CoreLogic says home prices are adjusting to correct the supply-demand imbalance, and as a result, declines will continue through the winter.

The administration unveiled its revamped Home Affordable Refinance Program (HARP) last week to allow borrowers who owe significantly more than their home is worth take out new loans with lower interest rates. CoreLogic says the impact will be targeted to those markets and local economies that have suffered the most from the housing collapse. The company believes HARP 2.0 will be positive for the GSEs and the origination market, negative for bondholders, and neutral for housing itself because distressed borrowers and shadow inventory are left out of the equation.

The foreclosure tide has yet to ebb, and the massive supply of bank-owned homes building over the last half-decade has taken its toll on market fundamentals. What's become of all those properties seized by banks? CoreLogic delved into the stats to find out. Looking at the outcomes of 355,000 properties foreclosed on in 2006, the company found that 105,000 were liquidated as REO sales to third-party buyers in six months or less, while more than 20,000 remain part of the industry's REO inventory.

CoreLogic and Amherst Holdings, LLC, have partnered to release the Agency Prepayment Analyzer, an online investment analysis tool. The analyzer intertwines CoreLogic's data with Amherst's analytics and forecasting to deliver prepayment risk trends for agency mortgage-backed securities. Designed for fixed-income investors, Agency Prepayment Analyzer tracks the rates at which residential mortgage loans prepay, either voluntarily or involuntarily due to refinancing, defaults, or sales - instances in which the GSEs require buybacks.

The analysts at Fitch Ratings warn that before the housing market pulls out of this downturn, half of prime borrowers could wind up underwater on their mortgage. Data released last month by CoreLogic shows that one in five of all residential mortgages in the U.S. is in a negative equity position. But segment out just those homeowners with prime mortgages, and Fitch says one in three currently owe more on their mortgage than the home is worth.