HCI highlights for the six Index attributes for Q3 2017:
- Credit Score: The average credit score for homebuyers increased 7 points year over year between Q3 2016 and Q3 2017, rising from 739 to 746. In Q3 2017, the share of homebuyers with credit scores under 640 was 2 percent compared with 25 percent in 2001. In other words, the Q3 2017 share was less than one-tenth of the share in 2001.
- Debt-to-Income: The average DTI for homebuyers in Q3 2017 was unchanged from Q3 2016 at 36. In Q3 2017, the share of homebuyers with DTIs greater than or equal to 43 percent was 22 percent, down slightly from 24 percent in Q3 2016, but up from 18 percent in 2001.
- Loan-to-Value: The LTV for homebuyers dropped by almost 2 percentage points year over year, down from 86.4 percent in Q3 2016 to 84.9 percent in Q3 2017. In Q3 2017, the share of homebuyers with an LTV greater than or equal to 95 percent had increased by almost one-third compared with 2001.
- Investor Share: The investor share of home-purchase loans increased slightly from 4 percent in Q3 2016 to 4.4 percent in Q3 2017.
- Condo/Co-op Share : The share of home-purchase loans secured by a condominium or co-op building increased from 10 percent in Q3 2016 to 11.5 percent in Q3 2017.
- Documentation Type : Low- or no-documentation loans remained a small part of the mortgage market in Q3 2017, increasing from 1.5 percent to 2.2 percent of home-purchase loans during the past year.
The HCI combines six mortgage credit risk attributes, including borrower credit score, loan-to-value (LTV) ratio, debt-to-income (DTI) ratio, documentation level (full documentation of a borrower's economic conditions or incomplete levels of documentation, including no documentation), status of investor-owned (whether property is a non-owner-occupied investment or owner-occupied primary residence and second home) and property type (whether property is a condominium or co-op). It spans more than 15 years and covers all loan products in both the prime and subprime lending segments and includes all 50 states and the District of Columbia, permitting peak-to-peak and trough-to-trough business cycle comparisons across the U.S. The CoreLogic Loan-Level Market Analytics data includes loan-level information, both current and historical, from servicers on active first-lien mortgages in the U.S., and the Non-Agency Residential Mortgage Backed Securities (RMBS) data includes loan-level information from the securitizers. In addition, CoreLogic public records data for the origination share by loan type (conventional conforming, government, jumbo) were used to adjust the combined servicing and securities data to assure that it reflects primary market shares. These changes across different dimensions are reflected in the HCI. A rising HCI indicates increasing credit risk, while a declining HCI indicates decreasing credit risk.Source: CoreLogic The data provided are for use only by the primary recipient or the primary recipient's publication or broadcast. These 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 are illustrated with maps, charts, graphs or other visual elements, the CoreLogic logo must be included on screen or web site. For questions, analysis or interpretation of the data contact Lori Guyton at email@example.com or Bill Campbell at firstname.lastname@example.org. Data provided may not be modified without the prior written permission of CoreLogic. Do not use the data in any unlawful manner. These data are compiled from public records, contributory databases and proprietary analytics, and its accuracy depends 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, CoreLogic Housing Credit Index (HCI), and the CoreLogic logo are trademarks of CoreLogic, Inc. and/or its subsidiaries.