Equity Report Q1 2017 - corelogic.com

1 Equity ReportFIRST QUARTER 2017 Homeowner Equity increased by $766 billion over the last year, the largest increase since Q2 2014. The rising cushion of home Equity is one of the main drivers of improved mortgage performance. Since home Equity is the largest source of homeowner wealth, the increase in home Equity also supports consumer balance sheets, spending and the broader economy. Frank Martell, president and CEO of CoreLogic2 Negative Equity value fell $ billion from $ billion in Q4 2016 to $283 billion in Q1 2017, an decrease of 2017 corelogic Proprietary. This material may not be reproduced in any form without express written QUARTER 20173 Equity Report national Overview Rising home prices led to improvements in home Equity , with 91 thousand residential properties regaining Equity in Q1 2017. The number of mortgaged residential properties with Equity is now at million. An additional million properties would regain Equity if home prices rose another 5 percent.

2 Over 51 million with a mortgage, million, or percent, of properties with a mortgage have positive Equity , but are considered under-equitied, with less than 20 percent $ mortgaged homes have negative equitydecrease in aggregate value of negative equityCoreLogic analysis indicates that approximately million homes, or percent of all residential properties with a mortgage, were still in negative Equity at the end of the fi rst quarter of 2017. Negative Equity means that a borrower owes more on a home than it is worth. These properties may be referred to as underwater or upside Equity value decreased $ billion from $ billion in Q1 2016 to $283 billion in Q1 2017, a decrease of additional Million properties would regain Equity if home prices rose another 5 percent.* Q4 2016 data was revised. Revisions with public records are standard, and to ensure accuracy, corelogic incorporates the newly released public data to provide updated Equity Properties with less than 20 percent mortgaged residential properties are under-equitiedof residential properties are near-negative equityBorrowers with less than 20-percent home Equity are referred to as under-equitied.

3 Of the 48 million properties with a mortgage currently with Equity , approximately million, or percent, have less than 20-percent , at the end of the fi rst quarter, million homes, or percent, had less than 5 percent Equity . This is referred to as near-negative Equity , which puts these properties at risk should home prices fall. One million borrowers achieved positive Equity over the last year, which means mortgage risk continues to steadily decline as a result of the home price increases. Pockets of concern remain with markets such as Miami, Las Vegas or Chicago, which are top three markets for negative Equity among large metros and each has a negative Equity share at least twice or more the national average. Dr. Frank Nothaft, chief economist for CoreLogicUNDERWRITING CONSTRAINTS MAY MAKE IT MORE DIFFICULT FOR UNDER-EQUITIED BORROWERS TO OBTAIN NEW HOME Loan to ValueUnderwater borrowers hold a fi rst lien without a home Equity loanof more expensive homes have positive Equity positionThe average loan-to-value ratio for all mortgaged homes is percent.

4 Of residential properties with a mortgage, 600,000, or percent, have a loan-to-value ratio of 100 percent to 105 percent. Another million, or percent, have a loan-to-value ratio greater than 125 million upside-down borrowers hold fi rst liens without home Equity loans. With an average balance of $266,000, these borrowers are underwater $85,000 on average. An additional million upside-down borrowers hold both fi rst and second liens. The average balance for this group is $334,000. Their average underwater amount is $99, Equity is concentrated at the higher end of the market. For example, 96 percent of homes valued at greater than $200,000 have Equity compared with 90 percent of homes valued at less than $200,000. 2017 corelogic Proprietary. This material may not be reproduced in any form without express written QUARTER 20175 national Equity DistributionA look at loan-to-value ratiosLoan-to-Value SegmentNational Equity Distribution by LTV Segment0%1%2%3%4%5%6%7%8%9%10%50% to 54%55% to 59%60% to 64%65% to 69%70% to 74%75% to 79%80% to 84%85% to 89%90% to 94%95% to 99%100% to 104%105% to 109%110% to 114%115% to 119%120% to 124%125% +Source: corelogic Q1 2017 Equity Share by State and Equity Cohorts0%10%20%30%40%50%60%70%80%90%100% TXWACONYCAIDNDKSNCMNNEPAKYMIALAKNMDENJCT OHNVMDS ource: corelogic Q1 2017 Less than 80% LTV80% to 100% LTVQ1 2017Q4 20166 national Equity DistributionA look at loan-to-value ratiosEquity Share with Average LTV by Property Value0%10%20%30%40%50%60%70%80%90%100%0 - 100K100K - 200K200K - 300K300K - 400K400K - 500K500K +Source.

5 corelogic Q1 2017 Cumulative Distribution of Equity by Property Value0%10%20%30%40%50%60%70%80%90%100%0 - 100K100K - 200K200K - 300K300K - 400K400K - 500K500K +Source: corelogic Q1 2017 Equity ShareAverage LTV120+ LTV100 to 120 LTV80 to 100 LTV50 to 80 LTV0 to 50 LTV 2017 corelogic Proprietary. This material may not be reproduced in any form without express written QUARTER 20177 national Equity DistributionA look at loan-to-value ratiosDefault Rate by LTV0%1%2%3%4%5%Less than 50%50% to 54%55% to 59%60% to 64%65% to 69%70% to 74%75% to 79%80% to 84%85% to 89%90% to 94%95% to 99%100% to 104%105% to 109%110% to 114%115% to 119%120% to 124%125% +Source: corelogic Q1 20178 national Level DetailNational Residential EquityQ1 2014Q2 2014Q3 2014Q4 2014Q1 2015Q2 2015Q3 2015Q4 2015Q1 2016Q2 2016Q3 2016Q4 2016Q12017 Positive Equity PositionLTV > 0 to < > 0 to < 80 to < Negative Equity (95 to < 100) Equity PositionLTV 100+ 100 to < 105 to < 125+ of Negative Equity Properties (millions) Amount of Negative Equity ($B) Homeowner Equity ($B) $5,500 $5,956 $6,052 $5,938 $6,145 $6,557 $6,712 $6,684 $6,826 $7,218 $7,404 $7,421 $7,592 Mortgage Debt Outstanding ($B) $8,636 $8,686 $8,751 $8,799 $8,841 $8,926 $8,998 $9,062 $9,110 $9,186 $9,249 $9,320 $9,377 Average *Thousands of Units*Quarters Q4 2015 and forward were revised 2017 corelogic Proprietary.

6 This material may not be reproduced in any form without express written QUARTER 20179 national SnapshotMap of Average Year-Over-Year Equity Gain per BorrowerUnited States 14K38K38K24K24K26K26K15K15K24K24K13K13K3 K3K24K24K7K7K3K3K11K11K7K7K5K5K4K4K11K11 K5K5K7K7K3K3K10K10K7K7K10K10K6K6K9K9K6K6 K6K6K10K10K8K8K11K11K14K14K10K10K9K9K5K5 K4K4K25K25K20K20K0K0K17K17K38K24K26K15K2 4K13K3K24K7K3K11K7K5K4K11K5K7K3K10K7K10K 6K9K6K6K10K8K11K14K10K9K5K4K25K20K0K33K2 2K11K5K7K3K19K17K17K $15K$8K to $14K$4K to $7K $3K* Louisiana, Maine, Mississippi, Vermont, West Virginia and Wyoming have insufficient Equity data to Report .** Hawaii average Equity gained is from Q4 2016 Source: corelogic Q1 201710 Only 15 states have a higher negative Equity share than the , Florida, Illinois, New Jersey, and Conneticut account for percent of negative Equity in the United HighlightsNear and Negative Equity Share0%5%10%15%20%25%30%35%40%NVILNJOHAZ WIVAARUSIAMOSCNEKYNCKSNYNDINAKCOUTTXS ource: corelogic Q1 2017 Negative Equity ShareNear-Negative Equity fi ve states where mortgaged residential properties have equityTop fi ve states where mortgaged residential properties have negative Equity 2017 corelogic Proprietary.

7 This material may not be reproduced in any form without express written QUARTER 201711 STAT EAVERAGE LT VEQUITY SHARE LT V SHARE >0 TO <80%LT V SHARE 80% TO <100% NEGATIVE Equity SHARE NEAR-NEGATIVE Equity SHARE (95% TO < 100% LTV)NEAR- Equity SHARE (100% TO <105% LTV)TOTAL MORTGAGED PROPERTY COUNT (THS.) 93 449 313 1,353 6,700 1,190 852 District of 102 210 3,981 1,734 249 464 289 2,228 870 346 401 1,557 1,359 1,440 764 *Only those properties with mortgages are DetailQ1 2017 Negative Equity by State*12 Equity All Loan to Value: Share: to Value Share >0 to <80%: to Value Share 80% to <100%: Equity Share: Equity Share (95% to <100% Loan to Value): Equity Share (100% to 105% Loan to Value): Mortgaged Property Count (ths.): 51,286 States with Negative Equity Share Higher Than the national Average: 15 Homes with Negative Equity : millionSTAT EAVERAGE LT VEQUITY SHARE LT V SHARE >0 TO <80%LT V SHARE 80% TO <100% NEGATIVE Equity SHARE NEAR-NEGATIVE Equity SHARE (95% TO < 100% LTV)NEAR- Equity SHARE (100% TO <105% LTV)TOTAL MORTGAGED PROPERTY COUNT (THS.)

8 858 143 North 1,761 North 83 263 New 264 New 1,820 New 270 551 New 2,048 2,178 501 745 2,109 Rhode 242 South 762 1,067 3,716 514 1,486 1,482 806*Only those properties with mortgages are included. 2017 corelogic Proprietary. This material may not be reproduced in any form without express written QUARTER 201713 Equity All Loan to Value: Share: to Value Share >0 to <80%: to Value Share 80% to <100%: Equity Share: Equity Share (95% to <100% Loan to Value): Equity Share (100% to 105% Loan to Value): Mortgaged Property Count (ths.): 51,286 States with Negative Equity Share Higher Than the national Average: 15 Homes with Negative Equity : millionMetropolitan Area HighlightsLargest 10 MetrosFive metros with highest percentage of residences in negative York-Jersey City-White Plains, NY-NJWashington-Arlington-Alexandria, DC-VA-MD-WVChicago-Naperville-Arlington Heights, ILLas Vegas-Henderson-Paradise, NVMiami-Miami Beach-Kendall, FLFive metros with highest percentage of residences with , MALos Angeles-Long Beach-Glendale, CAHouston-The Woodlands-Sugar Land, TXDenver-Aurora-Lakewood, COSan Francisco-Redwood City-South San Francisco, CAMETROPOLITAN AREAAVERAGE LT VEQUITY SHARE LT V SHARE >0 TO <80%LT V SHARE 80% TO <100% NEGATIVE Equity SHARE NEAR-NEGATIVE Equity SHARE (95% TO < 100% LTV)NEAR- Equity SHARE (100% TO <105% LTV)TOTAL MORTGAGED PROPERTY COUNT (THS.)

9 New York-Jersey City-White Plains, 1,628 Los Angeles-Long Beach-Glendale, 1,493 Chicago-Naperville-Arlington Heights, 1,352 Washington-Arlington-Alexandria, 1,063 Houston-The Woodlands-Sugar Land, 1,010 Denver-Aurora-Lakewood, 647 Miami-Miami Beach-Kendall, 437 Boston, 411 Las Vegas-Henderson-Paradise, 406 San Francisco-Redwood City-South San Francisco, 260 * Metropolitan Areas used are CBSAs as defined by the Office of Management and Budget (OMB) or the Metropolitan Division of a CBSA where available.** This table represents the largest 25 Metropolitan Areas by mortgage count, sorted by highest Equity Area HighlightsQ1 2017 Negative Equity by CBSA* 2017 corelogic Proprietary. This material may not be reproduced in any form without express written QUARTER 201 7 corelogic , Inc. All rights and the corelogic logo are trademarks of corelogic , Inc. and/or its subsidiaries. All other trademarks are the property of their respective holders.

10 17-EQTYQ117-0617-00 For an expanded perspective on housing economies and property markets, visit the corelogic Insights Blog and follow us on:CoreLogicCoreLogic EconCoreLogic Equity Report MethodologyThe amount of Equity for each property is determined by comparing the estimated current value of the property against the mortgage debt outstanding (MDO). If the MDO is greater than the estimated value, then the property is determined to be in a negative Equity position. If the estimated value is greater than the MDO, then the property is determined to be in a positive Equity position. The data is fi rst generated at the property level and aggregated to higher levels of geography. corelogic data includes 49 million properties with a mortgage, which accounts for more than 85 percent of all mortgages in the corelogic uses its public record data as the source of the MDO, which includes both fi rst-mortgage liens and second liens, and is adjusted for amortization and home Equity utilization in order to capture the true level of MDO for each property.