CoreLogic® Releases Third Quarter 2012 Multifamily Applicant Risk Index Report —Third Quarter 2012 Index Up One Point Year Over Year; Report Now Includes Renter Trends— PR Newswire IRVINE, Calif., Nov. 15, 2012 IRVINE, Calif., Nov. 15, 2012 /PRNewswire/ -- CoreLogic (NYSE: CLGX), a leading provider of information, analytics and business services, today announced that CoreLogic SafeRent^®, the nation's leading suite of screening and risk management services designed for the multifamily housing industry, released its third quarter 2012 multifamily applicant risk (MAR) index report including new renter trends. The third quarter MAR Index value decreased two points from the second quarter 2012 and increased two points from a year ago, indicating a modest increase in national renter credit quality and applicant pool quality. (Logo: http://photos.prnewswire.com/prnh/20100609/CLLOGO) Published quarterly, the MAR index provides property owners and managers with a benchmark of market based trends against which to evaluate their applicant credit quality trends. It provides trends of national and regional renter traffic credit quality scores whereby a lower index value indicates an applicant pool with a higher risk of not fulfilling lease obligations. The third quarter 2012 MAR Index was equivalent for one- and two-bedroom units at 106 (see Graph 1). (Photo: http://photos.prnewswire.com/prnh/20121115/SF13785) Renter Trends (based on an analysis of 39,000 properties representing nearly 6 million apartment homes) oRent Affordability Continues to Improve: Applicant income increased in excess of 1 percent from the third quarter of 2011, while the share of household income used to pay rent decreased in the third quarter by approximately 1.5 percent year over year to approximately 22 percent of total household income. The number of transactions with multiple applicants increased and the number of transactions with only one applicant declined, particularly in class A and B properties where the decline was in excess of 3 percent. "Lower rent-to-income ratios suggest that applicants can afford higher rents in many markets," said Jay Harris, senior director of Business Development for CoreLogic SafeRent. "The decreased number of single applicants indicates that renters are continuing to share the cost of rent with roommates, family and others in shared-living situations." oMore Applicants Age 50+: Compared to a year ago, applicants age 51 to 64 and 65+ comprised a slightly larger share of all applicants across property class (A, B and C classes are categorized by design and functionality, the year of construction and the building's location) – ranging from 16 to 19 percent of applicants. The share of younger applicants, ranging in age from 18 to 24, declined both from the second quarter and year over year. oThin or No Credit File Applicants Increase: Applicants with thin (3 or fewer trade lines on credit bureau file) or no credit bureau files represented 29.2 percent of third-quarter renter applicants—the highest share of renter applicants since 2007, but only slightly higher than the second quarter figure of 28.9 percent of applicants. "Individuals without conventional credit histories are important component of the market and make up an increasing share of all rental applicants," said Harris. oOperators Are Declining Fewer Applicants: The proportion of applicants declined by users of tenant scoring during the third-quarter has dropped steadily, with the lowest number of declined applicants in the third quarter of 2012. This is part of a larger trend of fewer declined applications that has occurred since 2008. The multifamily operator determines the minimum score required to qualify at each property, or the score at which an applicant will be declined. This resident credit quality score increased slightly for all property classes during the third quarter, year on year. "The apartment industry continues to decline fewer applicants and the renter credit quality of those applicants has improved both in score and income," said Harris. Regional Multifamily Applicant Risk Index Data Regionally, the South reflected the lowest MAR Index value—103, although this is a four point increase year over year. The Northeast continues to maintain the highest MAR Index with a value of 113 (see Table 1). Table 1: Regional Multifamily Applicant Risk Index Data Change from Change from Region Q3 2012 Q2 2012 Q2 2012 to Q3 Q3 2011 Q3 2011 to Q3 2012 2012 Midwest 103 106 -3 101 2 Northeast 113 116 -3 114 -1 South 103 105 -2 99 4 West 111 112 -1 108 3 U.S. 106 109 -3 104 2 The three Metropolitan Statistical Areas (MSA) with the greatest decreases in the MAR Index year-over-year were Rochester, N.Y. (4-point decline); Philadelphia-Camden-Wilmington, Pa.-N.J.- Del.- Md. (1-point decline); and Boston-Cambridge-Quincy, Mass – N.H. (1-point decline).The MSAs with the greatest increases in the MAR Index year-over-year were Denver-Aurora-Broomfield, Colo. (4-point increase); Washington-Arlington-Alexandria, D.C.- Va.- Md.-W. Va. (5-point increase); and Austin-Round Rock, Tex. (5-point increase) (see Table 2). Table 2: Metropolitan Statistical Area & Multifamily Applicant Risk Index Deltas Change from Q3 MSAs With Leading Decreases Q3 Q3 2011 2012 2011 to Q3 2012 Rochester, N.Y. 99 103 -4 Philadelphia-Camden-Wilmington, Pa.-N.J.- Del. – Md. 113 114 -1 Boston-Cambridge-Quincy, Mass – N.H. 114 115 -1 Change from Q3 MSAs With Leading Increases Q3 Q3 2011 2012 2011 to Q3 2012 Denver-Aurora-Broomfield, Colo. 109 105 4 Washington-Arlington-Alexandria, D.C. – Va.-Md.-W. 115 110 5 Va. Austin-Round Rock, Tex. 117 112 5 Understanding the Multifamily Applicant Risk Index (MAR Index) The MAR Index is published quarterly by CoreLogic SafeRent. The Index is based exclusively on applicant traffic credit quality scores from the CoreLogic SafeRent statistical lease screening model (Registry ScorePLUS^®). It provides trends of national and regional traffic credit quality scores whereby a lower index value indicates an applicant pool with a higher risk of not fulfilling lease obligations. A MAR Index value of 100 indicates that market conditions are equal to the national mean for the index's base period of 2004. A MAR Index value greater than 100 indicates market conditions with reduced average risk of default relative to the index's base period mean. A value less than 100 indicates market conditions with increased average risk of default relative to the index's base period mean. The MAR Index is derived from the statistical screening model from CoreLogic SafeRent, which is the multifamily industry's only screening model that is both empirically derived and statistically validated. The statistical screening model was developed from historical resident lease performance data to specifically evaluate the potential risk of a resident's future lease performance. The model generates scores for each applicant indicating the relative risk of the applicant not fulfilling lease obligations. A lower score indicates a more risky applicant. To receive the MAR Index data and renter trends for your Metropolitan Statistical Area or if you have questions, contact CoreLogic SafeRent at email@example.com. About CoreLogic CoreLogic (NYSE: CLGX) is a leading residential property information, analytics and services provider in the United States and Australia. Our combined data from public, contributory and proprietary sources spans over 700 million records across 40 years including detailed property records, consumer credit, tenancy, hazard risk and location information. The markets CoreLogic serves include real estate and mortgage finance, insurance, capital markets, transportation and government. We deliver value to our clients through unique data, analytics, and workflow technology, advisory and managed services. Our clients rely on us to help identify and manage growth opportunities, improve performance and mitigate risk. Headquartered in Irvine, Calif., CoreLogic operates in seven countries. For more information, please visit www.corelogic.com. CORELOGIC, the CoreLogic logo, SAFERENT and REGISTRY SCOREPLUS are trademarks of CoreLogic, Inc. and/or its subsidiaries. SOURCE CoreLogic Website: http://www.corelogic.com Contact: Media; Alyson Austin, Corporate Communications, +1-714-250-6180, firstname.lastname@example.org, or Katherine McDonald, CoreLogic SafeRent Communications, +1-678-229-5206, email@example.com, OR Investor; Dan Smith, Investor Relations, +1-703-610-5410, firstname.lastname@example.org
CoreLogic® Releases Third Quarter 2012 Multifamily Applicant Risk Index Report
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