New First American CoreLogic Study Quantifies Benefit of Economic Stimulus Tied to Mortgage Rates

—An Estimated $11.5 Billion in Mortgage Payment Savings Will Accrue to U.S. Borrowers Over the Next Five Years—

September 15, 2009, SANTA ANA, Calif.

First American CoreLogic, a member of The First American Corporation (NYSE: FAF) family of companies and America’s largest provider of advanced property and ownership information, analytics and services, today released a new study that measures the consumer impact of recent government actions to reduce mortgage rates. The study can be downloaded at

Entitled “How the U.S. Consumer Has Benefitted from Mortgage Finance Programs in 2009,” the study by Mark Fleming, Ph.D. and chief economist for First American CoreLogic, examines the effect of the Federal Reserve’s interest rate reductions and government refinance programs on refinance activity and the results in increased consumer disposable income. Using data from the First American CoreLogic public-record database, which covers 96 percent of the U.S. population, the study analyzes more than 2.2 million residential mortgage refinances that occurred between October 2008 and June 2009. With the use of public-records data on sale and mortgage transaction activity, the First American CoreLogic study estimates the degree of debt burden reduction and the magnitude of dollars saved as a result of refinancing.  The study projects that this refinance activity will result in $2.3 billion of mortgage payment savings for borrowers who refinanced in the first six months of 2009. According to the study, the median individual monthly savings was $120, a 10.5 percent reduction from the median borrower’s previous mortgage payment. Over the next five years, the total benefit to homeowners who refinanced in 2009 will grow to $11.5 billion.

“The quantitative easing policies of the Federal Reserve and refinance activity made possible by the Home Affordable Refinance Program (HARP) have allowed more than 2 million consumers to reduce their monthly mortgage debt obligations and put more money in their pockets,” said Fleming. “This permanent increase in monthly income is likely to, in part, be used to increase consumption and help to drive growth as the economy rebounds. Additionally, these refinanced loans are likely to be more sustainably affordable debt obligations. The combination of lower payments and fixed-rate terms should also reduce the risk of future foreclosure.”

About First American CoreLogic
First American CoreLogic
, a member of The First American Corporation (NYSE:FAF) family of companies, is the largest provider in the U.S. of real estate, property, ownership, fraud, mortgage, and mortgage securities data—and the advanced analytics that use them—for the assessment of real estate sales, collateral valuation, home price trends, mortgage originations, mortgage- and asset-based securities pricing, foreclosures, delinquencies, and asset dispositions. Our market-specific data covers 98 percent of all U.S. ZIP codes and 3,059 counties in all 50 states and the District of Columbia, representing 99 percent of the U.S. population, 97 percent of all properties (140 million), more than 50 million active mortgages and 96 percent of loan-level, non-agency mortgage securities. First American CoreLogic’s products and services enable customers to manage credit and mortgage risk, protect against fraud, acquire and retain customers, mitigate loss, decrease mortgage-transaction cycle times, value properties accurately, determine real estate trends, and project future market performance. For more information about First American CoreLogic, please visit

About First American

The First American Corporation (NYSE: FAF) is a FORTUNE 500® company that traces its history to 1889. With revenues of approximately $6.2 billion in 2008, 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



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