First American CoreLogic Releases Third Quarter 2008 Core Mortgage Risk Monitor
—Core Mortgage Risk Index Rises 12 Percent Over One Year Ago—
September 16, 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, which forecasts the relative risk of residential loan delinquencies, is available for download at www.facorelogic.com. For a graphic representation of the Q3 2008 Core Mortgage Risk Index, visit
“The third-quarter Core Mortgage Risk Index (CMRI) has risen 12 percent above a year ago and has increased for eleven of the last twelve quarters. The CMRI is currently 55 percent above the base period of the first quarter of 2002, a period near the end of the last U.S. economic recession. Although significantly higher now than during this base period, the CMRI is likely to continue rising nationally over the next 18 months,” said Mark Fleming, chief economist for First American CoreLogic. “The primary factor driving the most recent increase in mortgage risk is the decline in home prices. When the CMRI began to rise in late 2005, fraud and collateral risk were the driving factors—both the fraud and collateral risk indices had been rapidly rising since 2003. Late in 2007 and 2008, the rapid decline in home prices began to quickly overwhelm all other factors driving risk. Markets with high levels of mortgage risk are typically characterized by home price declines, a struggling local economy and higher-than-average fraud and collateral risk. However, in the current phase of the cycle, the largest factor driving mortgage performance is home price declines. California is currently the state with the largest price declines and eight of the ten riskiest Core-Based Statistical Areas (CBSAs) nationwide are from the state,” added Fleming.
The Core Mortgage Risk Monitor is a quarterly report which 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 eighty-nine 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.
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 over 43 million active mortgages and over $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.