Market Overview

CoreLogic Loan Performance Insights Finds Overall U.S. Mortgage Delinquency and Foreclosure Rates Lowest for May in 12 Years

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  • Early-Stage Delinquencies Drop 0.1 Percentage Points Year Over Year
    in May
  • Florida was the Only State to Post an Annual Increase in Overall
    Delinquency Rate
  • Existing Mortgages at Risk in Regions Impacted By Current Wildfires

CoreLogic® (NYSE:CLGX), a leading global property
information, analytics and data-enabled solutions provider, today
released its monthly Loan
Performance Insights Report.
The report shows that, nationally, 4.2
percent of mortgages were in some stage of delinquency (30 days or more
past due, including those in foreclosure) in May 2018, representing a
0.3 percentage point decline in the overall delinquency rate compared
with May 2017, when it was 4.5 percent.

This press release features multimedia. View the full release here:
https://www.businesswire.com/news/home/20180814005204/en/

CoreLogic National Overview of Mortgage Loan Performance, featuring May 2018 Data (Graphic: Business ...

CoreLogic National Overview of Mortgage Loan Performance, featuring May 2018 Data (Graphic: Business Wire)

As of May 2018, the foreclosure inventory rate – which measures the
share of mortgages in some stage of the foreclosure process – was 0.5
percent, down 0.2 percentage points from 0.7 percent in May 2017. The
May 2018 foreclosure inventory rate was the lowest for any month since
September 2006, when it was also 0.5 percent, and it was the lowest for
May since 2006.

Measuring early-stage delinquency rates is important for analyzing the
health of the mortgage market. To monitor mortgage performance
comprehensively, CoreLogic examines all stages of delinquency, as well
as transition rates, which indicate the percentage of mortgages moving
from one stage of delinquency to the next.

The rate for early-stage delinquencies – defined as 30 to 59 days past
due – was 1.8 percent in May 2018, down from 1.9 in May 2017. The share
of mortgages that were 60 to 89 days past due in May 2018 was 0.6
percent, unchanged from May 2017. The serious delinquency rate – defined
as 90 days or more past due, including loans in foreclosure – was 1.8
percent in May 2018, down from 2 percent in May 2017. The May 2018
serious delinquency rate was the lowest for that month since 2007, when
it was 1.6 percent.

Since early-stage delinquencies can be volatile, CoreLogic also analyzes
transition rates. The share of mortgages that transitioned from current
to 30 days past due was 0.8 percent in May 2018, unchanged from 0.8
percent in May 2017. By comparison, in January 2007, just before the
start of the financial crisis, the current- to 30-day transition rate
was 1.2 percent, while it peaked in November 2008 at 2 percent.

"While the strong economy has nudged serious delinquency rates to their
lowest level in 12 years, areas hit by natural disasters have had
increases," said Dr. Frank Nothaft, chief economist for CoreLogic. "The
tragic wildfires in the West will likely lead to a spike in
delinquencies in hard-hit neighborhoods. As an example, the wildfire in
Santa Rosa last year destroyed or severely damaged more than 5,000
homes. Delinquency rates rose in the aftermath, and in the ensuing
months we observed home-price growth accelerate and sales decline. We
will likely see the same scenario unfold in fire-ravaged communities
this year."

In California, where current delinquency rates are well below the
national level, the regions impacted by recent wildfires are becoming
more susceptible to mortgages entering some stage of delinquency as the
fires continue to burn. According to a recent Carr
Fire analysis by CoreLogic
, the 2018 season is outpacing 2017 with
more than 292,000 acres burned this year thus far. The Carr Fire outside
the city of Redding and the French Gulch community presented the
greatest risk to homeowners with CoreLogic estimating a total of $3.5
billion potential reconstruction costs in that area.

"Serious delinquency rates continue to remain lower than a year earlier
except in Florida and Texas, the hardest-hit states during last year's
hurricane season," said Frank Martell, president and CEO of CoreLogic.
"We have observed continued challenges for families to make mortgage
payments in regions impacted during the 2017 Hurricane season. For the
coming months, we will monitor mortgage and housing trends in areas now
plagued by wildfires, particularly in California, Montana, and Arizona."

For ongoing housing trends and data, visit the CoreLogic Insights Blog: www.corelogic.com/insights.

Methodology

The data in this report represents foreclosure and delinquency activity
reported through May 2018.

The data in this report accounts for only first liens against a property
and does not include secondary liens. The delinquency, transition and
foreclosure rates are measured only against homes that have an
outstanding mortgage. Homes without mortgage liens are not typically
subject to foreclosure and are, therefore, excluded from the analysis.
Approximately one-third of homes nationally are owned outright and do
not have a mortgage. CoreLogic has approximately 85 percent coverage of
U.S. foreclosure data.

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 website. For questions, analysis or interpretation of the
data, contact Alyson Austin at newsmedia@corelogic.com
or Allyse Sanchez at corelogic@ink-co.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 is dependent upon these sources.

About CoreLogic

CoreLogic (NYSE:CLGX) is a leading global property information,
analytics and data-enabled solutions provider. The company's combined
data from public, contributory and proprietary sources includes over 4.5
billion records spanning more than 50 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, and the public sector. 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 North America,
Western Europe and Asia Pacific. For more information, please visit www.corelogic.com.

CORELOGIC and the CoreLogic logo are trademarks of CoreLogic, Inc.
and/or its subsidiaries.

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