equity mortgage new york.pdf

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Negative Equity mortgage state American CoreLogic mortgage debt outstanding Negative Equity position Negative Equity share property Negative Equity mortgage

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Negative Equity mortgage state American CoreLogic mortgage debt outstanding Negative Equity position Negative Equity share property Negative Equity mortgage

 
 
First American CoreLogic’s Negative Equity Data Report 
(as of September 30, 2008) 
Overview: 
The First American CoreLogic Negative Equity Report is the industry’s first state-level assessment of 
negative equity estimates for all single-family residential properties in the U.S. The data includes nearly 
42 million properties that have a first and/or second mortgage, which account for over 80% of all 
mortgages in the US. The first report looks at negative equity and near-negative equity as of September 
30, 2008. First American CoreLogic will update this report on a quarterly basis.  
Summary of findings: 
• Over 7.5 million mortgages or 18% of all properties with a mortgage were in a negative equity 
position as of the end of September 2008. There are an additional 2.1 million mortgages that are 
approaching negative equity. These are defined as mortgages within 5% of being in a negative 
equity position.  Negative-equity and near-negative equity mortgages combined account for over 
23% of all properties with a mortgage. 
• The distribution of negative equity is heavily skewed to a small number of states. Nevada and 
Michigan have the highest percentages of negative equity - Nevada led the nation with an 
estimated 48% and Michigan was second with 39%. Five other states have negative equity shares 
in excess of 20%: Florida (29%), Arizona (29%), California (27%), Georgia (23%), and Ohio 
(22%).    
• The top 6 states in terms of negative equity account for over 58% of all negative equity 
mortgages, although they only account for 36% of all mortgages. The average negative equity 
share among the top 6 states is 29% compared to 18% for the US overall.  
• Excluding the top 6 states, the average negative equity in the remaining 44 states is 12%, well 
below the national average. New York has the lowest share of mortgages in negative equity at 
7%, followed closely by Hawaii (8%), Pennsylvania (9%) and Montana (10%).  
• The states with high negative equity shares tend to fall in three groups. The first group is 
composed of states that experienced a rapid housing-price boom and speculative investments and 
are now experiencing rapid price depreciation. These states include Nevada, Arizona, California 
and Florida. The second group is made up Midwestern states, such as Michigan and Ohio, that 
have experienced manufacturing-driven economic stagnation and have had distressed housing 
markets for some time. A third group is emerging: Southern states that did not necessarily 
experience a large housing boom, but have higher negative equity rates than the majority of 
states. These include Texas, Georgia, Arkansas, and Tennessee. 
 
 
Methodology:  
First American CoreLogic used its industry-leading public record data as the source of the mortgage debt 
outstanding (MDO), and includes first mortgage liens and junior mortgage liens in order to capture the 
true level of mortgage debt outstanding for each property. The current value was estimated by using First 
American CoreLogic’s Automated Valuation Models (AVM). Certain data was filtered to exclude 
properties outside of AVM accuracy confidence levels.  
The amount of equity for each property was determined by subtracting the property’s estimated current 
value from the mortgage debt outstanding. If the mortgage debt was greater than the estimated value, then 
the property is in a negative equity position.  
For more information: 
Mortgage industry trade publication inquiries: 
Bill Campbell, Campbell Lewis Communications 
bill@campbelllewis.com 
d (212) 995.8057 t 
c (917) 328.6539c  
All other media inquiries: 
Analisa Schelle, Ogilvy Public Relations Worldwide 
 
analisa.schelle@ogilvypr.com 
d. 415-677-2721 
c 510-292-5410