Foreclosure backlog looms
RealtyStore has completed a new study of the foreclosure
status in three major housing markets, finding the amount of
pending listings exceeds the amount of active foreclosures
listed for sale by a margin of over 2 to 1. This shadow
inventory of foreclosed homes illustrates the significant
overhang of foreclosure listings that are anticipated to be
unleashed on the housing in the wake of resolving the
so-called foreclosure robo-signing situation in late 2010.
The study was conducted for Cook County, IL (including metro
Chicago), Miami-Dade County, FL (including metro Miami) and
Maricopa County, AZ (including metro Phoenix). Foreclosure
counts in each location were tabulated by owner, including
bank or lender owned homes, foreclosures owned by Fannie Mae
or Freddie Mac, and HUD homes. Although Arizona had
previously been one of the hardest hit areas for foreclosure
activity, Cook County, IL shows a near equal total amount of
foreclosed homes. Miami-Dade foreclosures number at roughly
half the count of either other market.
The breakdown of active foreclosure listings vs pending, or
shadow inventory, foreclosures listings was consistent
across each market surveyed. On average, 29% of total
foreclosures across the counties are currently listed for
sale. Cook County, IL foreclosures were most heavily
represented with active listings, with 32% of its
foreclosures presently being marketed to buyers, and 68% of
foreclosures pending listing. Maricopa County, AZ
foreclosure listings for sale represent only 25% of recorded
foreclosures in the county, with 75% of local foreclosures
yet to be listed for re-sale. Miami-Dade, FL currently
offers 29% of its total foreclosures on the market for
re-sale, with 71% of its foreclosure inventory awaiting
listing on the market. According to RealtyStore, median
list prices of foreclosures for sale in Cook, Maricopa and
Miami-Dade counties continue to run below average home
prices. Cook County foreclosures are listed at a median
price of just $72,650 and an average price of $95,997.
Miami-Dade foreclosures list at a median price of $106,900
and average $145,059, while Maricopa lists foreclosed homes
slightly higher with a median of $109,900 and the average
foreclosure listed at a price of $168,744.
The foreclosure median list prices come in at 56% and 42%
below the median sales prices of single-family homes selling
in metro-Chicago and Miami, respectively, as reported by the
NAR in Q4, 2011. Metro-Phoenix posts a smaller price gap at
7%, suggesting foreclosure saturation may be peaking in
Maricopa County. Individual foreclosure listings continue
to cover all portions of the pricing spectrum, ranging from
as low as $5,900 for a single family foreclosed home in
Chicago, IL to as high as a foreclosed estate in Paradise
Valley, AZ listed at $5,700,000.
Jobless claims up
Initial claims for state unemployment benefits slipped 2,000
to a seasonally adjusted 386,000, the Labor Department said.
But the prior week's figure was revised up to 388,000 from
the previously reported 380,000. The four-week moving
average for new claims, considered a better measure of labor
market trends, rose 5,500 to 374,750. Economists polled by
Reuters had forecast claims falling to 370,000 last week.
The claims data covered the week for April's nonfarm
payrolls survey. The four-week average of new applications
rose marginally between the March and April survey periods,
suggesting not much change in labor market conditions.
Employers added 120,000 new jobs to their payrolls in March,
the least since October, after averaging 246,000 jobs per
month over the prior three months. Most economists have
viewed the pull-back in job growth as payback after the
weather-induced gains in the previous months. The number of
people still receiving benefits under regular state programs
after an initial week of aid rose 26,000 to 3.30 million in
the week ended April 7. The number of Americans on
emergency unemployment benefits fell 19,419 to 2.78 million
in the week ended March 31, the latest week for which data
is available. A total of 6.77 million people were claiming
unemployment benefits during that period under all programs,
down 187,807 from the prior week.
CoreLogic - First Quarter 2012 Multifamily Applicant Risk
Index Report
CoreLogic today announced that CoreLogic SafeRent, provider
of the nation's leading suite of screening and risk
management services designed for the multifamily housing
industry, released its first quarter 2012 multifamily
applicant risk (MAR) index report. The first quarter MAR
Index value increased one point from the fourth quarter 2011
and three points from a year ago, indicating an increase in
national renter credit quality and slightly better applicant
pool. The MAR Index for first quarter 2012 is based
exclusively on applicant traffic credit quality scores from
the CoreLogic SafeRent statistical lease screening model
(Registry ScorePLUS) and is updated quarterly to provide
property owners and managers with a benchmark against which
to evaluate their applicant credit quality trends against
market based MAR Index trends. This comparison indicates the
relative strength of their property portfolio to attract and
secure applicants with higher credit quality and an
increased likelihood of fulfilling lease obligations.
When comparing applicants for one- versus two-bedroom units,
the first quarter 2012 MAR Index is slightly higher for
one-bedroom units at 102, compared with 101 for two-bedroom
units. Regionally, the South and Midwest reflected the
lowest MAR Index, each with values of 98, a one point
increase from the fourth quarter 2011. The Northeast
continues to maintain the highest MAR Index with a value of
111. The three Metropolitan Statistical Areas (MSA) with
the steepest decreases in the MAR Index were
Cincinnati-Middletown, Ohio, Ky., Ind.; Columbus, Ohio; and
Birmingham-Hoover, Ala.; each with decreases of three
points. The three MSAs with the greatest increases in the
MAR Index were Chicago-Naperville-Joliet, Ill., Ind., Wis.;
Denver-Aurora, Colo.; and Salt Lake City, Utah; each with
increases of four points.
Understanding the Multifamily Applicant Risk Index (MAR
Index)
The MAR Index is published quarterly by CoreLogic SafeRent.
It provides trends of national and regional traffic credit
quality scores whereby a lower index value indicates an
applicant pool with a higher risk of not fulfilling lease
obligations. A MAR Index value of 100 indicates that market
conditions are equal to the national mean for the index's
base period of 2004. A MAR Index value greater than 100
indicates market conditions with reduced average risk of
default relative to the index's base period mean. A value
less than 100 indicates market conditions with increased
average risk of default relative to the index's base period
mean. The MAR Index is derived from the statistical
screening model from CoreLogic SafeRent, which is the
multifamily industry’s only screening model that is both
empirically derived and statistically validated. The
statistical screening model was developed from historical
resident lease performance data to specifically evaluate the
potential risk of a resident’s future lease performance.
The model generates scores for each applicant indicating the
relative risk of the applicant not fulfilling lease
obligations. A lower score indicates a more risky
applicant.
BOA tops estimates
Bank of America (BOA) reported lower first-quarter profit as
the second-largest US bank took accounting charges related
to its debt, but results topped analysts' estimates as
credit quality improved. The bank reported charges of $4.8
billion related to changes in the value of its debt,
partially offset by gains of $3.4 billion from equity
investments and debt-related transactions. Excluding debt
valuation adjustments, it earned 31 cents a share.
First-quarter net income was $653 million, or 3 cents a
share, down from $2.05 billion, or 17 cents per share, a
year earlier. Revenue declined to $22.3 billion from $26.9
billion. The Charlotte, N.C.-based bank took a loan-loss
provision of $2.4 billion, compared with $3.8 billion a year
ago. In its capital markets operations, Bank of America
reported sales and trading revenue of $3.8 billion, up from
$1.5 billion in the fourth quarter but down from $4.6
billion a year ago.
California foreclosure reform moves forward
Seven bills reforming some foreclosure rules passed
committees in the California state legislature this week.
The bills were introduced in February. One set of bills
extends protections to tenants, giving them 90 days before
eviction after the foreclosure sale of the property. Another
increases penalties to banks that fail to maintain blighted
homes. Servicers would be required to provide documentation
to the borrower establishing its right to foreclose before
the filing first step in the process, under other passed
bills. Evidence of ownership and chain of title must also be
shown to the borrower. Two other bills charge servicers a
$25 fee for every notice of default recording. The money
will fund investigations for California AG Kamala Harris.
Another piece of legislation passed by committee allows
Harris to convene a grand jury to investigate financial
crimes in different jurisdictions. "All Californians have
been impacted by the toll the mortgage and foreclosure
process has taken on our neighborhoods," Harris said. "Our
California Homeowner Bill of Rights will provide relief for
homeowners, tenants and communities. I thank the authors and
supporters of these important bills."
RealtyStore has completed a new study of the foreclosure
status in three major housing markets, finding the amount of
pending listings exceeds the amount of active foreclosures
listed for sale by a margin of over 2 to 1. This shadow
inventory of foreclosed homes illustrates the significant
overhang of foreclosure listings that are anticipated to be
unleashed on the housing in the wake of resolving the
so-called foreclosure robo-signing situation in late 2010.
The study was conducted for Cook County, IL (including metro
Chicago), Miami-Dade County, FL (including metro Miami) and
Maricopa County, AZ (including metro Phoenix). Foreclosure
counts in each location were tabulated by owner, including
bank or lender owned homes, foreclosures owned by Fannie Mae
or Freddie Mac, and HUD homes. Although Arizona had
previously been one of the hardest hit areas for foreclosure
activity, Cook County, IL shows a near equal total amount of
foreclosed homes. Miami-Dade foreclosures number at roughly
half the count of either other market.
The breakdown of active foreclosure listings vs pending, or
shadow inventory, foreclosures listings was consistent
across each market surveyed. On average, 29% of total
foreclosures across the counties are currently listed for
sale. Cook County, IL foreclosures were most heavily
represented with active listings, with 32% of its
foreclosures presently being marketed to buyers, and 68% of
foreclosures pending listing. Maricopa County, AZ
foreclosure listings for sale represent only 25% of recorded
foreclosures in the county, with 75% of local foreclosures
yet to be listed for re-sale. Miami-Dade, FL currently
offers 29% of its total foreclosures on the market for
re-sale, with 71% of its foreclosure inventory awaiting
listing on the market. According to RealtyStore, median
list prices of foreclosures for sale in Cook, Maricopa and
Miami-Dade counties continue to run below average home
prices. Cook County foreclosures are listed at a median
price of just $72,650 and an average price of $95,997.
Miami-Dade foreclosures list at a median price of $106,900
and average $145,059, while Maricopa lists foreclosed homes
slightly higher with a median of $109,900 and the average
foreclosure listed at a price of $168,744.
The foreclosure median list prices come in at 56% and 42%
below the median sales prices of single-family homes selling
in metro-Chicago and Miami, respectively, as reported by the
NAR in Q4, 2011. Metro-Phoenix posts a smaller price gap at
7%, suggesting foreclosure saturation may be peaking in
Maricopa County. Individual foreclosure listings continue
to cover all portions of the pricing spectrum, ranging from
as low as $5,900 for a single family foreclosed home in
Chicago, IL to as high as a foreclosed estate in Paradise
Valley, AZ listed at $5,700,000.
Jobless claims up
Initial claims for state unemployment benefits slipped 2,000
to a seasonally adjusted 386,000, the Labor Department said.
But the prior week's figure was revised up to 388,000 from
the previously reported 380,000. The four-week moving
average for new claims, considered a better measure of labor
market trends, rose 5,500 to 374,750. Economists polled by
Reuters had forecast claims falling to 370,000 last week.
The claims data covered the week for April's nonfarm
payrolls survey. The four-week average of new applications
rose marginally between the March and April survey periods,
suggesting not much change in labor market conditions.
Employers added 120,000 new jobs to their payrolls in March,
the least since October, after averaging 246,000 jobs per
month over the prior three months. Most economists have
viewed the pull-back in job growth as payback after the
weather-induced gains in the previous months. The number of
people still receiving benefits under regular state programs
after an initial week of aid rose 26,000 to 3.30 million in
the week ended April 7. The number of Americans on
emergency unemployment benefits fell 19,419 to 2.78 million
in the week ended March 31, the latest week for which data
is available. A total of 6.77 million people were claiming
unemployment benefits during that period under all programs,
down 187,807 from the prior week.
CoreLogic - First Quarter 2012 Multifamily Applicant Risk
Index Report
CoreLogic today announced that CoreLogic SafeRent, provider
of the nation's leading suite of screening and risk
management services designed for the multifamily housing
industry, released its first quarter 2012 multifamily
applicant risk (MAR) index report. The first quarter MAR
Index value increased one point from the fourth quarter 2011
and three points from a year ago, indicating an increase in
national renter credit quality and slightly better applicant
pool. The MAR Index for first quarter 2012 is based
exclusively on applicant traffic credit quality scores from
the CoreLogic SafeRent statistical lease screening model
(Registry ScorePLUS) and is updated quarterly to provide
property owners and managers with a benchmark against which
to evaluate their applicant credit quality trends against
market based MAR Index trends. This comparison indicates the
relative strength of their property portfolio to attract and
secure applicants with higher credit quality and an
increased likelihood of fulfilling lease obligations.
When comparing applicants for one- versus two-bedroom units,
the first quarter 2012 MAR Index is slightly higher for
one-bedroom units at 102, compared with 101 for two-bedroom
units. Regionally, the South and Midwest reflected the
lowest MAR Index, each with values of 98, a one point
increase from the fourth quarter 2011. The Northeast
continues to maintain the highest MAR Index with a value of
111. The three Metropolitan Statistical Areas (MSA) with
the steepest decreases in the MAR Index were
Cincinnati-Middletown, Ohio, Ky., Ind.; Columbus, Ohio; and
Birmingham-Hoover, Ala.; each with decreases of three
points. The three MSAs with the greatest increases in the
MAR Index were Chicago-Naperville-Joliet, Ill., Ind., Wis.;
Denver-Aurora, Colo.; and Salt Lake City, Utah; each with
increases of four points.
Understanding the Multifamily Applicant Risk Index (MAR
Index)
The MAR Index is published quarterly by CoreLogic SafeRent.
It provides trends of national and regional traffic credit
quality scores whereby a lower index value indicates an
applicant pool with a higher risk of not fulfilling lease
obligations. A MAR Index value of 100 indicates that market
conditions are equal to the national mean for the index's
base period of 2004. A MAR Index value greater than 100
indicates market conditions with reduced average risk of
default relative to the index's base period mean. A value
less than 100 indicates market conditions with increased
average risk of default relative to the index's base period
mean. The MAR Index is derived from the statistical
screening model from CoreLogic SafeRent, which is the
multifamily industry’s only screening model that is both
empirically derived and statistically validated. The
statistical screening model was developed from historical
resident lease performance data to specifically evaluate the
potential risk of a resident’s future lease performance.
The model generates scores for each applicant indicating the
relative risk of the applicant not fulfilling lease
obligations. A lower score indicates a more risky
applicant.
BOA tops estimates
Bank of America (BOA) reported lower first-quarter profit as
the second-largest US bank took accounting charges related
to its debt, but results topped analysts' estimates as
credit quality improved. The bank reported charges of $4.8
billion related to changes in the value of its debt,
partially offset by gains of $3.4 billion from equity
investments and debt-related transactions. Excluding debt
valuation adjustments, it earned 31 cents a share.
First-quarter net income was $653 million, or 3 cents a
share, down from $2.05 billion, or 17 cents per share, a
year earlier. Revenue declined to $22.3 billion from $26.9
billion. The Charlotte, N.C.-based bank took a loan-loss
provision of $2.4 billion, compared with $3.8 billion a year
ago. In its capital markets operations, Bank of America
reported sales and trading revenue of $3.8 billion, up from
$1.5 billion in the fourth quarter but down from $4.6
billion a year ago.
California foreclosure reform moves forward
Seven bills reforming some foreclosure rules passed
committees in the California state legislature this week.
The bills were introduced in February. One set of bills
extends protections to tenants, giving them 90 days before
eviction after the foreclosure sale of the property. Another
increases penalties to banks that fail to maintain blighted
homes. Servicers would be required to provide documentation
to the borrower establishing its right to foreclose before
the filing first step in the process, under other passed
bills. Evidence of ownership and chain of title must also be
shown to the borrower. Two other bills charge servicers a
$25 fee for every notice of default recording. The money
will fund investigations for California AG Kamala Harris.
Another piece of legislation passed by committee allows
Harris to convene a grand jury to investigate financial
crimes in different jurisdictions. "All Californians have
been impacted by the toll the mortgage and foreclosure
process has taken on our neighborhoods," Harris said. "Our
California Homeowner Bill of Rights will provide relief for
homeowners, tenants and communities. I thank the authors and
supporters of these important bills."
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