Core Mortgage Risk Monitor™ Highlights Housing Market "Hot Spots"
-- CoreLogic releases the second quarter 2006 Core Mortgage Risk Monitor and data --
SACRAMENTO, September 18, 2006 – With fewer houses selling, increases in foreclosures and real estate prices dropping, the housing market is experiencing the “soft landing” that has been long predicted. Today, CoreLogic released the latest edition of the Core Mortgage Risk MonitorÔ findings and map, forecasting the geographic “housing hot spots” most likely to experience the economic consequences of increased levels of fraudulent activity over the next 12 – 18 months.
According to the latest Core Mortgage Risk Monitor (CMRM), the risk index rose by 5% between the first and second quarters of 2006, after increasing by 6.4% between the fourth quarter 2005 and first quarter 2006. The CMRM measures collateral risk, which is the risk associated with the accuracy of a residential property valuation and the sustainability of that valuation over the life of the mortgage due to the unique characteristics of the property, market, and mortgage contract participants. This increase indicates that the risk of mortgage fraud causing economic impact in vulnerable markets continues to rise at an unprecedented rate.
“Using its proprietary data systems, CoreLogic calculates accurate, localized predictions of areas with a high likelihood of residential loan performance issues leading to negative economic consequences for the community,” said Mark Fleming, CoreLogic chief economist. “This data helps us understand the future risk landscape so that we can provide lenders and borrowers with valuable information to protect them from fraudulent loans.”
TheTOP FIVE major metropolitan statistical areas (MSA’s) most at risk include*:
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Detroit-Livonia-Dearborn, MI
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Memphis, TN-MS-AR
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Dayton, OH
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Akron, OH
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Gary, IN
The TOP FIVE markets showing the most noticeable increase quarter over quarter are:
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Gary, IN
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Detroit-Livonia-Dearborn, MI
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Goldsboro, NC
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Flint, MI
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Florence, SC
*Top five markets among the largest 100 MSA’s in the U.S.
CoreLogic chief economist, Mark Fleming is available to discuss the data contained in the CMRM as well as other hot housing topics including:
- How CoreLogic determines at-risk areas
- The economic impact of mortgage fraud and what it means to communities
- Steps consumers can take if their city or state is located in a “housing hot spot”
- The importance of collateral risk management to the lending industry
Please contact Misha Gutierrez at 916-418-1500 or misha.gutierrez@ogilvypr.com to obtain a copy of the map or to schedule an interview.
About CoreLogic, A C&S Company
Sacramento, Calif.-based CoreLogic, A C&S Company, is the leading provider of collateral risk-analysis and management technology and services to the U.S. mortgage banking industry. Since 1997, the mortgage industry has relied on CoreLogic to enable risk management and workflow process support. Using CoreLogic technology, mortgage originators and investors are able to increase profitability and loan quality by making more informed lending and investment decisions. The CoreLogic suite of property information tools provides the data, comprehensive geographic coverage, ease-of-use and accessibility the mortgage industry needs. For more information about CoreLogic, visit www.corelogic.com.
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