Latest Issue of LoanPerformance MarketPulse™ Features Freddie Mac Home Price Growth Study
Report Also Includes Mortgage Delinquency and Pre-Payment Trend Data
SAN FRANCISCO, CA - Nov. 22, 2005 – LoanPerformance, a subsidiary of First American Real Estate Solutions (RES®) and a leader in residential mortgage data and analytics, today announced that the latest issue of its MarketPulse report is available for download at www.loanperformance.com.
This latest report features a study by Freddie Mac economists entitled “Reversion to the Mean Versus Sticking to Fundamentals: Looking to the Next Five Years of Housing Price Growth.”
The study, co-authored by Frank E. Nothaft, Freddie Mac’s chief economist; and Amy Crews Cutts, the agency’s deputy chief economist, examines the question of whether there is a house price bubble nationally or in some regions of the United States. Included is a forecast of the likely change in prices under three models: one that asserts a mean reversion correction on regional markets to return the national average gain in prices to the 50-year annual growth rate of 5 percent over the period 1998-2010; the second and third base future regional and national home price growth on economic fundamentals.
“In all cases,” the authors say, “we find the predicted worst-case outcomes to be much less dire than the ‘doomsday’ predictions reported in the mainstream press and elsewhere.”
The issue also summarizes a selection of key mortgage performance statistics for the first half of 2005, including geographic markets with the highest percentage of interest-only purchase loans, highest incidence of serious delinquency and prepayment rates for prime and subprime loans.
MarketPulse is a free quarterly report that presents analysis and insight into delinquency and prepayment trends for the prime, subprime, home equity, and mortgage-backed and asset-backed securities markets. Each issue also contains a “RiskView” section with valuable insights from thought leaders on the prime, subprime and securities mortgage marketplace. The summary data in each issue of MarketPulse is extracted from LoanPerformance’s industry-leading mortgage servicing and securities databases. MarketPulse can be accessed by completing the electronic subscription form at www.loanperformance.com/marketpulse.
LoanPerformance is a subsidiary of First American Real Estate Solutions and a member of The First American Corporation (NYSE: FAF) family of companies. LoanPerformance’s databases track the delinquency and prepayment performance of 46 million active individual mortgage payments per month and provide loan-level information on more than $1 trillion in nonagency mortgage and asset-backed securities. The company’s data and suite of predictive prepayment and risk modeling solutions enable mortgage originators, servicers, securities issuers and investors to make informed business decisions about credit risk, loss mitigation, customer retention, securitization and investment. For additional information, visit www.loanperformance.com and www.firstamres.com.
The First American Corporation (NYSE: FAF), a FORTUNE 500® company that traces its history to 1889, is the nation’s largest data provider. 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 six primary business segments, including: Title Insurance and Services, Specialty Insurance, Mortgage Information, Property Information, Credit Information and Screening Information. With revenues of $6.72 billion in 2004, First American has approximately 2,000 offices throughout the United States and abroad. More information about the company and an archive of its press releases can be found at www.firstam.com.
Media contact:
David Schulz
Corporate Communications
The First American Corporation
(714) 800-3298
dschulz@firstam.com
