CoreLogic® Reports Shadow Inventory Continues Decline in October 2012

    CoreLogic® Reports Shadow Inventory Continues Decline in October 2012

- Shadow Inventory, Now at 2.3 Million Units, Seen as Manageable in 2013 -

PR Newswire

IRVINE, Calif., Jan. 2, 2013

IRVINE, Calif., Jan. 2, 2013 /PRNewswire/ -- CoreLogic (NYSE: CLGX), a leading
provider of information, analytics and business services, reported today that
the current residential shadow inventory as of October 2012 fell to 2.3
million units*, representing a supply of seven months. The October inventory
level represents a 12.3 percent drop from October 2011, when shadow inventory
stood at 2.6 million units.

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CoreLogic estimates the current stock of properties in the shadow inventory,
also known as pending supply, by calculating the number of properties that are
seriously delinquent, in foreclosure and held as real estate owned (REO) by
mortgage servicers but not currently listed on multiple listing services
(MLSs). Transition rates of "delinquency to foreclosure" and "foreclosure to
REO" are used to identify the currently distressed unlisted 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 reporting measurements of unsold inventory.

"The size of the shadow inventory continues to shrink from peak levels in
terms of numbers of units and the dollars they represent," said Anand
Nallathambi, president and CEO of CoreLogic. "We expect a gradual and
progressive contraction in the shadow inventory in 2013 as investors continue
to snap up foreclosed and REO properties and the broader recovery in housing
market fundamentals takes hold."

"Almost half of the properties in the shadow are delinquent and not yet
foreclosed," said Mark Fleming, chief economist for CoreLogic. "Given the long
foreclosure timelines in many states, the current shadow inventory stock
represents little immediate threat to a significant swing in housing market
supply. Investor demand will help to absorb the already foreclosed and REO
properties in the shadow inventory in 2013."

Data Highlights as of October 2012:

  oAs of October 2012, shadow inventory fell to 2.3 million units, or seven
    months' supply, and represented 85 percent of the 2.7 million properties
    currently seriously delinquent, in foreclosure or in REO.
  oOf the 2.3 million properties currently in the shadow inventory (Figures 1
    and 2), 1.04 million units are seriously delinquent (3.3 months' supply),
    903,000 are in some stage of foreclosure (2.8 months' supply) and 354,000
    are already in REO (1.1 months' supply).
  oAs of October 2012, the dollar volume of shadow inventory was $376
    billion, down from $399 billion a year ago.
  oOver the three months ending in October 2012, serious delinquencies, which
    are the main driver of the shadow inventory, declined the most in Arizona
    (13.3 percent), California (9.7 percent), Michigan (6.8 percent), Colorado
    (6.8 percent) and Wyoming (5.9 percent).
  oAs of October 2012, Florida, California, Illinois, New York and New Jersey
    make up 45 percent of the 2.7 million properties that are seriously
    delinquent, in foreclosure or in REO. In October 2011, these same states
    made up 51.3 percent of all the distressed mortgages that were at least 90
    days delinquent, in foreclosure or REO.

*Previous data was revised. Revisions with public records data are standard,
and to ensure accuracy, CoreLogic incorporates the newly released public data
to provide updated results.

The full October 2012 Shadow Inventory Report with additional charts and roll
rate information is available here.

Figure 1: Shadow Inventory Detail
Count in Millions, Not Seasonally Adjusted

Figure 2: Months' Supply Shadow Inventory Detail
Number of Months, Not Seasonally Adjusted

Figure 3: Months' Supply
Number of Months, Not Seasonally Adjusted

CoreLogic uses its Loan Performance Servicing and Securities databases to size
the number of 90+ day delinquencies, foreclosures and real estate owned (REO)
properties. Cure rates, which measure the proportion of loans in one stage of
default that cured (versus moving to more severe states of default), are
applied to the number of loans in default at each stage of default. CoreLogic
calculates the share of loans in default that are currently listed on MLS by
matching public record properties in default to MLS active listings. It
applies the percentage of defaulted loans that are currently listed to the
estimate of outstanding loans that will proceed to further stages of default
to calculate the pending supply inventory and adds that to the reported
visible inventory. Visible inventory is compiled from CoreLogic ListingTrends.
To determine months' supply for visible and shadow inventories, CoreLogic uses
the number of non-seasonally adjusted home sales according to CoreLogic data.

Source: CoreLogic
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citation must directly accompany first reference of the data. If the data is
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logo must be included on screen or website. For questions, analysis or
interpretation of the data, contact Lori Guyton at lguyton@cvic.comor Bill
Campbell at Data provided may not be modified without
the prior written permission of CoreLogic. Do not use the data in any
unlawful manner. This data is compiled from public records, contributory
databases and proprietary analytics, and its accuracy is dependent upon these

About CoreLogic
CoreLogic (NYSE: CLGX) is a leading property information, analytics and
services provider in the United States and Australia. The company's combined
data from public, contributory, and proprietary sources includes over 3.3
billion records spanning more than 40 years, providing detailed coverage of
property, mortgages and other encumbrances, consumer credit, tenancy,
location, hazard risk and related performance information. The markets
CoreLogic serves include real estate and mortgage finance, insurance, capital
markets, transportation and government. CoreLogic delivers value to clients
through unique data, analytics, workflow technology, advisory and managed
services. Clients rely on CoreLogic 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

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Inc. and/or its subsidiaries.

SOURCE CoreLogic

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