First American CoreLogic Releases Second Quarter 2008 Core Mortgage Risk Monitor™
June 9, 2008, SANTA ANA, Calif.
First American CoreLogic, a member of The First American Corporation (NYSE:FAF) family of companies and a leader in residential mortgage data and analytics for the mortgage industry and Wall Street, today announced that the latest issue of its Core Mortgage Risk Monitor is available for download at www.facorelogic.com.
The Core Mortgage Risk Monitor is a quarterly report that provides an economic forecast, analysis and commentary on the relative risk of residential mortgage loan delinquencies due to fraud propensity and collateral risk, house price dynamics and the health of the local market economy. The Core Mortgage Risk Monitor tracks risk in 381 metropolitan markets across the United States, representing more than 89 percent of the United States. The Core Mortgage Risk Index (CMRI) is the basis for the forecast. An elevated CMRI signals the increased potential for financially disruptive and costly economic consequences for consumers, their local community, and the mortgage industry.
“The second quarter 2008 Core Mortgage Risk Index (CMRI) is 16 percent above the same period a year ago, having increased for the fourth consecutive quarter. The CMRI forecasts delinquency risk and is now 47 percent above a base period near the end of the last recession. Although higher now than then, the CMRI is likely to continue rising over the next 18 months,” said Mark Fleming, chief economist for First American CoreLogic. “The primary driver of increasing risk has been home price depreciation. The economic slowdown and possible recession has reinforced the rise in mortgage risk as well. The riskiest markets in the country are typically characterized by double-digit home price declines and deteriorating labor markets. By far the most noteworthy trends are the continued rapidly rising risks in California, Florida and other cyclical markets and the persistence of mortgage risk in the Midwest,” added Fleming.
About First American CoreLogic
First American CoreLogic, a member of The First American Corporation (NYSE:FAF) family of companies, was formed through the merger of First American Real Estate Solutions, America’s largest provider of advanced property and ownership information, analytics and services, and CoreLogic, the leading provider of residential mortgage risk management and fraud protection technology and services, and the acquisition of LoanPerformance, the leading provider of mortgage performance data and analytics. The combined companies’ databases cover more than 3,000 counties, representing 99.1 percent of the United States population, data on more than 43 million active mortgages and more than $2 trillion in loan-level non agency mortgage securities. With more than 600,000 users nationwide, First American CoreLogic products are used by businesses to improve customer acquisition and retention, better manage credit risk, loss mitigation, securitization and investment, detect and prevent fraud, improve mortgage transaction cycle time and cost efficiency, measure the value of residential and commercial properties, identify real estate trends and neighborhood characteristics, track market performance and increase market share. More information about First American CoreLogic can be found at www.facorelogic.com.
About First American
The First American Corporation (NYSE: FAF) is a FORTUNE 500® company that traces its history to 1889. With revenues of approximately $8.2 billion in 2007, it is America’s largest provider of business information. First American combines advanced analytics with its vast data resources to supply businesses and consumers with valuable information products to support the major economic events of people’s lives, such as getting a job, renting an apartment, buying a car or house, securing a mortgage and opening or buying a business. The First American Family of Companies, many of which command leading market share positions in their respective industries, operate within five primary business segments, including: Title Insurance and Services, Specialty Insurance, Information and Outsourcing Solutions, Data and Analytic Solutions, and Risk Mitigation and Business Solutions. More information about the company and an archive of its press releases can be found at www.firstam.com.