CoreLogic Reports 200,000 More Residential Properties Return To Positive Equity In Fourth Quarter Of 2012

   CoreLogic Reports 200,000 More Residential Properties Return To Positive
                       Equity In Fourth Quarter Of 2012

--10.4 Million Residential Properties with a Mortgage Still in Negative
Equity--

PR Newswire

IRVINE, Calif., March 19, 2013

IRVINE, Calif., March 19, 2013 /PRNewswire/ --CoreLogic^® (NYSE: CLGX), a
leading provider of information, analytics and business services, today
released new analysis showing approximately 200,000 more residential
properties returned to a state of positive equity during the fourth quarter of
2012. This brings the total number of properties that moved from negative to
positive equity in 2012 to 1.7 million and the number of mortgaged residential
properties with equity to 38.1 million. The analysis also shows that 10.4
million, or 21.5 percent of all residential properties with a mortgage, were
still in negative equity at the end of the fourth quarter of 2012. This figure
is down from 10.6 million* properties, or 22 percent, at the end of the third
quarter of 2012.

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Negative equity, often referred to as "underwater" or "upside down," means
that borrowers owe more on their mortgages than their homes are worth.
Negative equity can occur because of a decline in value, an increase in
mortgage debt or a combination of both.

The national aggregate value of negative equity decreased $42 billion to $628
billion at the end of the fourth quarter from $670 billion at the end of the
third quarter in 2012. This decrease was driven in large part by an
improvement in home prices.

Of the 38.1 million residential properties with positive equity, 11.3 million
have less than 20 percent equity. Borrowers with less than 20 percent equity,
referred to as "under-equitied," may have a more difficult time obtaining new
financing for their homes due to underwriting constraints. At the end of the
fourth quarter, 2.3 million residential properties had less than 5 percent
equity, referred to as near-negative equity. Properties that are near negative
equity are at risk should home prices fall. Under-equitied mortgages accounted
for 23.2 percent of all residential properties with a mortgage nationwide in
the fourth quarter of 2012. The average amount of equity for all properties
with a mortgage is 31 percent.

"In the fourth quarter we again saw an improvement in the equity position of
households," said Dr. Mark Fleming, chief economist for CoreLogic. "Housing
market improvements, particularly in the hardest hit states, are the catalyst
for households to regain equity and become participants in 2013's housing
market."

"The scourge of negative equity continues to recede across the country. There
is certainly more to do but with fewer borrowers underwater, the fundamentals
underpinning the housing market will continue to strengthen," said Anand
Nallathambi, president and CEO of CoreLogic. "The trend toward more homeowners
moving back into positive equity territory should continue in 2013." 

Highlights as of Q4 2012:

  oNevada had the highest percentage of mortgaged properties in negative
    equity at52.4 percent, followed by Florida (40.2 percent), Arizona (34.9
    percent), Georgia(33.8 percent) and Michigan (31.9 percent). These top
    five states combined account for 32.7 percent of negative equity in the
    U.S.
  oOf the largest 25 metropolitan areas, Tampa-St. Petersburg-Clearwater,
    Fla. had the highest percentage of mortgaged properties in negative equity
    at 44.1 percent, followed by Miami-Miami Beach-Kendall, Fla. (40.7
    percent), Atlanta-Sandy Springs-Marietta, Ga.(38.1 percent),
    Phoenix-Mesa-Glendale, Ariz. (36.6 percent), and Riverside-San
    Bernardino-Ontario, Calif. (35.7 percent).
  oOf the total $628 billion in negative equity, first liens without home
    equity loans accounted for $313 billion aggregate negative equity, while
    first liens with home equity loans accounted for $315 billion.
  o6.5 million upside-down borrowers hold first liens without home equity
    loans. The average mortgage balance for this group of borrowers is
    $213,000. The average underwater amount is $45,000.
  o3.9 million upside-down borrowers hold both first and second liens. The
    average mortgage balance for this group of borrowers is $296,000.The
    average underwater amount is $80,000.
  oThe bulk of home equity for mortgaged properties is concentrated at the
    high end of the housing market. For example, 86 percent of homes valued at
    greater than $200,000 have equity compared with 72 percent of homes valued
    at less than $200,000.

*Third Quarter 2012 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 Equity Report with additional charts is available here. 

Figure 1: National Home Equity Distribution by LTV Segment

Figure 2: Home Equity Share by State and Equity Cohorts

Figure 3: Near and Negative Equity Share by State

Map 1: Under-Equity and Negative Equity Share Combined by County

State Table: CoreLogic Q4 2012 Negative Equity by State*
*This data only includes properties with a mortgage. Non-mortgaged properties
are by definition not included.

Methodology
The amount of equity for each property is determined by comparing the
estimated current value of the property against the mortgage debt outstanding
(MDO). If the MDO is greater than the estimated value, then the property is
determined to be in a negative equity position. If the estimated value is
greater than the MDO, then the property is determined to be in a positive
equity position. The data is first generated at the property level and
aggregated to higher levels of geography. CoreLogic data includes 49 million
properties with a mortgage, which accounts for more than 85 percent of all
mortgages in the U.S. CoreLogic uses its public record data as the source of
the MDO which includes both first-mortgage liens and second liens and is
adjusted for amortization and home equity utilization in order to capture the
true level of MDO for each property. The calculations are not based on
sampling, but rather on the full data set to avoid potential adverse selection
due to sampling. The current value of the property is estimated using a suite
of proprietary CoreLogic valuation techniques, including valuation models and
the CoreLogic Home Price Index (HPI). Only data for mortgaged residential
properties that have a current estimated value is included. There are several
states or jurisdictions where the public record, current value or mortgage
coverage is thin. These instances account for fewer than 5 percent of the
total U.S. population.

Source: CoreLogic
The data provided is for use only by the primary recipient or the primary
recipient's publication or broadcast. This data may not be re-sold,
republished or licensed to any other source, including publications and
sources owned by the primary recipient's parent company without prior written
permission from CoreLogic. Any CoreLogic data used for publication or
broadcast, in whole or in part, must be sourced as coming from CoreLogic, a
data and analytics company. For use with broadcast or web content, the
citation must directly accompany first reference of the data. If the data is
illustrated with maps, charts, graphs or other visual elements, the CoreLogic
logo must be included on screen or web site. For questions, analysis or
interpretation of the data contact Lori Guyton at lguyton@cvic.comor Bill
Campbell at bill@campbelllewis.com. 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 depends upon these sources.

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 and the CoreLogic logo are trademarksof CoreLogic, Inc. and/or its
subsidiaries.

SOURCE CoreLogic

Website: http://www.corelogic.com
Contact: Real estate industry and trade media, Bill Campbell, +1-212-995-8057
(office), bill@campbelllewis.com, or general news media, Andrea Hurst,
+1-405-487-7721 (mobile), +1-405-235-2842 (office), ahurst@cvic.com
 
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