CoreLogic Releases Q4 2012 Renter Applicant Risk Index Report

        CoreLogic Releases Q4 2012 Renter Applicant Risk Index Report

—Default Risk Among Renters Decreased Year Over Year—

PR Newswire

IRVINE, Calif., Feb. 20, 2013

IRVINE, Calif., Feb. 20, 2013 /PRNewswire/ -- CoreLogic^® (NYSE: CLGX), a
leading residential property information, analytics and services provider,
today released its fourth quarter 2012 CoreLogic SafeRent^® Renter Applicant
Risk (RAR) Index Report, formerly known as the Multifamily Applicant Risk
(MAR) Index Report. Published quarterly, the RAR Index Report provides
market-based benchmarks for evaluating credit quality and risk of default for
renters applying for apartment homes in multifamily housing units. The index
also includes data from single-family rentals. Using a mean of 100, an index
value above 100 indicates decreased risk, and a value below 100 indicates
increased risk.

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According to the data, the risk of default among renters nationwide decreased
year over year in the fourth quarter of 2012 with an index value of 103
compared to the fourth quarter of 2011 with an index value of 101. On a
quarter-over-quarter basis, the risk of default increased in the fourth
quarter 2012 compared to the third quarter of 2012 when the index value was
106. The increased risk from the third quarter to the fourth quarter of 2012
reflects a riskier applicant pool that is typical in seasonally slower periods
of applicant traffic (See Figure 1).

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Renter Trends

  oLower-priced rentals see more significant decreases in rent amounts:
    Average rent amounts for Class A properties, defined as those with rents
    greater than $1100, increased 0.3 percent year over year. At the same
    time, rent amounts for Class B properties, defined as those between $750
    and $1100, remained unchanged from one year ago, while rent amounts for
    Class C properties, defined as less than $750, decreased 0.9 percent year
    over year.
  oDual applicants increase: In the fourth quarter of 2012, the number of
    transactions with two applicants increased across property class. On a
    year-over-year basis, dual-applicant transactions increased 3.9 percent
    for Class A properties, increased 2.8 percent for Class B properties and
    increased 0.3 percent for Class C properties.
  oApplicant income rises: Applicant income in the fourth quarter of 2012
    increased an average of 1.7 percent among all property classes year over
    year and also increased over the previous quarter by .5 percent. 
  oFewer applicants declined: Compared to a year ago, property managers
    denied fewer applicants in the fourth quarter of 2012. Class A property
    managers denied 5 percent fewer applicants, Class B managers denied 1.3
    percent fewer and Class C managers denied 0.6 percent fewer applicants.

Regional Renter Applicant Risk Index Data

Regionally, the Northeast and West had the highest RAR index value in the
fourth quarter of 2012, both at 110, reflecting decreased default risk (see
Figure 2). The Midwest had the lowest RAR index value at 98, reflecting
increased risk, with a five-point decline from the previous quarter when the
value was 103. The increased risk in the Midwest is reflective of increased
risk seen in two Midwest Core Based Statistical Areas* (CBSAs) (see Figure 3).

Figure 2: Regional Renter Applicant Risk Index Data

Region    Q4 2012 Q3 2012 Change from Q3 2012 to   Q4 2011 Change from Q4 2011
                          Q4 2012                          to Q4 2012
Midwest   98      103     -5                       97      1
Northeast 110     113     -3                       110     0
South     100     103     -3                       97      3
West      110     111     -1                       107     3
U.S.      103     106     -3                       101     2

The three CBSAs with the largest year-over-year increases in applicant risk
were Chicago-Joliet-Naperville, Ill.-Ind.-Wis. (three-point value decline);
Cleveland-Elyria-Mentor, Ohio (two-point value decline); and Dallas-Fort
Worth-Arlington, Texas (one-point value decline). The CBSAs with the largest
year-over-year declines in applicant risk were Denver-Aurora-Broomfield,
Colo.; New York-Northern New Jersey-Long Island, N.Y.-N.J.-Pa.; and San
Diego-Carlsbad-San Marcos, Calif., all with a four-point value increase (see
Figure 3).

Figure 3: Core Based Statistical Area & Renter Applicant Risk Index Deltas

CBSAs With Largest Decreases                   Q4 2012 Q4 2011 Change from Q4
                                                               2011 to Q4 2012
Chicago-Joliet-Naperville, Ill.-Ind.-Wis.      110     113     -3
Cleveland-Elyria-Mentor, Ohio                  98      100     -2
Dallas-Fort Worth-Arlington, Texas             94      95      -1
CBSAs With Largest Increases                   Q4 2012 Q4 2011 Change from Q4
                                                               2011 to Q4 2012
Denver-Aurora-Broomfield, Colo.                105     101     4
New York-Northern New Jersey-Long Island,      124     120     4
N.Y.-N.J.-Pa.
San Diego-Carlsbad-San Marcos, Calif.          124     120     4

NOTE: CBSAs are selected from the Top 50 CBSAs based on population and
applicant volume.

* The CBSAs referred to within the Renter Applicant Risk Index Report may
differ from the CBSAs referenced in other CoreLogic data reports. CBSAs are
defined by the Office of Management and Budget (OMB) and CoreLogic may provide
data either for the overall CBSA or a Metropolitan Division of a CBSA,
depending upon the report. The particular CBSA used is identified in the
report.

Methodology

The SafeRent Renter Applicant Risk (RAR) Index Report is published quarterly
by CoreLogic. The RAR Index is calculated exclusively from applicant-traffic
credit quality scores from the CoreLogic SafeRent statistical lease screening
model, Registry ScorePLUS^® and is based on an analysis of 39,000 properties
representing nearly 6 million apartment homes and single-family rentals. The
index provides a benchmark trend of national and regional traffic credit
quality scores. The index value indicates the relative risk of an applicant
pool fulfilling lease obligations. A risk index value of 100 indicates that
market conditions are equal to the national mean for the Index's base period
of 2004. A risk 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. Registry ScorePLUS 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.

To receive local or regional renter applicant risk index data or if you have
questions, contact CoreLogic SafeRent at smallon@corelogic.com.

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
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: Alyson Austin, Corporate Communications, +1-949-214-1414,
newsmedia@corelogic.com; Sarah Mallon, CoreLogic SafeRent Communications,
+1-303-357-7526, smallon@corelogic.com; Lori Guyton, Crosby~Volmer
International Communications, +1-901-277-6066, lguyton@cvic.com
 
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