Core Conversations

CoreLogic

Get in the know about real estate housing market trends, affordability, severe weather risk and climate change, as well as how that all ties into promoting thriving communities. Hosted by Maiclaire Bolton Smith, Vice President of Hazard and Risk Management at CoreLogic, tune in for timely insights and in-depth conversations with experts to keep a finger on the pulse of the global housing economy. read less
TecnologiaTecnologia
NegóciosNegócios
CiênciaCiência

Episódios

Building Codes Cost. But What is Resiliency Actually Worth?
12-06-2024
Building Codes Cost. But What is Resiliency Actually Worth?
As the frequency and severity of natural catastrophes intensify, the need to strengthen the resiliency of communities against these perils is increasingly urgent. Building codes are a critical tool in this endeavor. However, their adoption and enforcement vary significantly across states. A recent report from the Insurance Institute for Business and Home Safety (IBHS) underscores the lack of uniformity in building code implementation among states vulnerable to hurricanes.While some states, like Florida, have stringent codes that help to reinforce home resilience, other states like Texas grapple with disparities in code adoption, amplifying vulnerability to hurricane-related damages.This divergent approach to building codes has far-reaching implications for disaster preparedness and response.With the arrival of the 2024 hurricane season, understanding the intersection between building codes, community resilience, and climate change is key for entities developing mitigation strategies anchored in resilience.To talk about the importance of building codes, address concerns regarding up-front costs versus long-term benefits, and discuss the success of stronger structures in weathering storms, Host Maiclaire Bolton Smith is joined by CoreLogic's Director of Catastrophe Response, Jon Schneyer.In This Episode:2:41 – Why are building codes so important, and how can older buildings be retrofitted to code?6:18 – Examining one of the most famous examples of building codes in action.8:04 – Erika Stanley goes over the numbers in the housing market in The Sip.9:14 – Looking at the differences between Texas and Florida building codes, according to the IBHS report.11:21 – Is mitigation through building codes a financially sound investment?14:36 – Erika Stanley reviews natural catastrophes and extreme weather events across the world.15:41 – What could the inconsistent use of building codes in Texas mean if a strong hurricane hits the state this year?17:52 – How is hurricane risk developing, and how can you understand your risk?Up Next: SEC Climate Disclosure Guidance Timeline Pause: Why Companies BenefitLinks: Texas Hail(ed) 2023 a Record-Breaking Year for Insured LossesIBHS Research Report: Rating the States 2024Hazard HQ Command CentralRead CoreLogic Intelligence Find full episodes with all our guests in our podcast archive here: https://clgx.co/3HFslXD4 Copyright 2024 CoreLogic
What Are the Ethical Implications of AI in the Property Industry?
29-05-2024
What Are the Ethical Implications of AI in the Property Industry?
A full 67% of IT senior leaders are prioritizing generative AI for their businesses, according to Salesforce data. This statistic underscores the growing importance of AI in today's business landscape and highlights the urgency of understanding its implications.Although AI is not new technology, over the past couple of years, it has reshaped industries. But with its rise comes a myriad of questions and concerns, ranging from technical complexities to ethical implications.From forecasting floods to streamlining insurance claims, AI is revolutionizing how we interact with property data and make decisions. But as we navigate this technological landscape, we must also address the ethical dimensions of AI, ensuring fairness, transparency, and accountability.In this episode, host Maiclaire Bolton Smith and Amy Gromowski, CoreLogic vice president, head of Data Science, delve into these questions surrounding AI, exploring its potential, challenges, and ethical considerations.In This Episode: 2:35 – Explain AI like I’m a five-year-old.5:31 – AI not new technology. How long has CoreLogic been using it?7:05 – Why is data security and integrity so crucial for AI models?10:03 – Erika Stanley goes over the numbers in the housing market with The Sip.11:12 – What can we do to limit implicit bias and explicit bias in AI models?15:52 – What does it mean to responsibly use AI?18:48 – Erika Stanley talks about what is happening in the world of natural disasters. 20:19 – What will widespread adoption of AI look like for the property industry? Will this ever transpire?Links: Hazard HQ Command CentralRead CoreLogic Intelligence Up Next: Some Insurers Banned AI — Will Insurtech Bring It Back?Find full episodes with all our guests in our podcast archive here: https://clgx.co/3HFslXD4 Copyright 2024 CoreLogic
Can Housing Market Foreclosures Remain Low as Consumer Debt Rises?
15-05-2024
Can Housing Market Foreclosures Remain Low as Consumer Debt Rises?
As housing prices remain elevated, it's crucial to examine the other side of the coin, where worries about affordability linger despite the substantial equity many homeowners have amassed.In a housing market characterized by high prices, soaring equity, and ballooning consumer debt, it is worth examining mortgage delinquency and foreclosure rates, which are currently hovering around historic lows. But what's behind this trend, and what does it signify for the future of the housing market and real estate?In this episode, host Maiclaire Bolton Smith and CoreLogic Principal Economist Molly Boesel examine the monumental increases in home prices over the past decade, the subsequent strain on affordability, and how these trends have been exacerbated by a surge in mortgage rates and a persistent scarcity of housing supply. Compounding the market complexity is the relationship between mortgage delinquencies and consumer debt. Nevertheless, amidst these challenges, mortgage delinquencies are at historic lows, buoyed by a robust job market and homeowners' substantial equity cushions.Maiclaire and Molly unpack how rising prices for essentials like groceries and gas are stretching household budgets and how people can navigate through the uncertainties of potential economic shifts while maintaining an optimistic outlook for the housing market.In This Episode:1:54 – What is the state of affordability in the U.S. economy?3:26 – How are mortgages affected by overall real estate market trends?5:15 – Why is it important to track mortgage delinquencies?7:49 – How does rising consumer debt affect property owners’ ability to pay mortgages?  Is it a leading indicator that there may be more late payments soon?11:15 – What is the status of foreclosures in the market?12:42 – How are mortgage servicers using equity to protect property owners from late payment and foreclosure?15:46 – Erika Stanley goes over the numbers in the housing market in The Sip.17:08 – How have home equity gains differed across the U.S.?19:52 – Are there certain states where the potential for mortgage delinquencies is higher?20:35 – Erika Stanley reviews natural catastrophes and extreme weather events across the world22:00 – What does the future look like for mortgage delinquencies are foreclosures?Links: Hazard HQ Command CentralRead CoreLogic Intelligence Up Next: Are Investors and Interest Rates Abolishing the Dream of Homeownership?Find full episodes with all our guests in our podcast archive here: https://clgx.co/3HFslXD4 Copyright 2024 CoreLogic
Why Valuing Barndominiums, Tiny Homes Needs the Cost Approach
01-05-2024
Why Valuing Barndominiums, Tiny Homes Needs the Cost Approach
Whether you're valuing, insuring, underwriting or even simply buying and selling real estate, understanding the nuances of property valuation is crucial.But why do homes have so many different values and what role does each value play in the grand scheme of things? From market value to insurable value to the cost approach, who you are and what type of value you’re looking for plays a pivotal role in how you consider property values.But then there is the world of unconventional homes like barndominiums and tiny houses.In this episode, host Maiclaire Bolton Smith and Ed Martinez, director of industry solutions at CoreLogic, discuss how a home's location, size and effective age make the cost approach an excellent benchmark when valuing these unique properties.In This Episode: 2:12 – An explanation of why there are different values on the same property.3:26 – What is the cost approach and why can’t all property valuations be uniform?5:38 – How does the value of land factor into overall valuations?6:58 – How do you influence the effective age of a structure? Is it really kitchen and bathroom remodels?8:42 – Erika Stanley goes over the numbers in the housing market in The Sip.10:05 – Why are barndominiums so popular right now?12:27 – For non-traditional homes, why is the cost approach the most accurate method?15:22 – How much of a cost savings do barndominiums offer, really?18:12 – Erika Stanley reviews natural catastrophes and extreme weather events across the world.19:22 – What are the most important factors when assessing the value of a home?Links: Hazard HQ Command CentralRead CoreLogic Intelligence Up Next: Which U.S. Metros Sit in the Crosshairs of Remote Work Migration?Find full episodes with all our guests in our podcast archive here: https://clgx.co/3HFslXD4 Copyright 2024 CoreLogic
SEC Climate Disclosure Guidance Timeline Pause: Why Companies Benefit
17-04-2024
SEC Climate Disclosure Guidance Timeline Pause: Why Companies Benefit
On March 6, 2024, the Securities and Exchange Commission (SEC) sent shockwaves through the financial world by mandating that publicly traded companies disclose details about how climate change affects their businesses. However, this rule hit a roadblock on April 4 when legal challenges led the SEC to pause the implementation timeline, throwing compliance requirements into uncertainty.While the future of this rule is in limbo, the implications of such a mandate for businesses, investors, and the economy are immense. Should the SEC reinstate the rule following litigation, it will be a fundamental shift in how corporations assess and report climate-related risks, potentially reshaping investment strategies and business models.To navigate this labyrinthine, we're joined by Russell McIntyre, a seasoned policy analyst at CoreLogic. Russell sheds light on the intricacies of the SEC ruling, dissecting its reporting requirements and the implications of the uncertain implementation timeline.This discussion also covers the reasons why, despite this pause in implementation, businesses should prepare for these reporting requirements and what data and analysis future compliance will require.In This Episode: 1:56 – What happened with this SEC ruling? What does the stay mean for implementation timelines?4:07 – What is the mood on Capitol Hill following the pause on this landmark rule?5:43 – What happened to make the SEC put these rulings into effect now?8:45 – What are the reporting requirements in this rule?11:06 – Even though there’s a pause, why should companies still prepare for this type of reporting?13:46 – Erika Stanley does the numbers in the housing market in The Sip.15:03 – Russell and Maiclaire discuss what parts of the rule they wish weren’t removed.16:49 – Why insurance recovery data may soon be public investor information.19:49 – How can companies gather the necessary data to comply with these rules in the future?20:28 – Erika Stanley reviews natural catastrophes and extreme weather events across the world.21:37 – Is this just the first step in a larger effort to disclose climate risk?Links: Study Shows Economic Impacts of Greenhouse Gas Emissions | DartmouthSEC Final Climate Disclosure RuleHazard HQ Command CentralRead CoreLogic Intelligence Up Next: Can Property Data Accurately Predict Shifts in the Property Market?Find full episodes with all our guests in our podcast archive here: https://clgx.co/3HFslXD4 Copyright 2024 CoreLogic
Can Property Data Accurately Predict Shifts in the Property Market?
03-04-2024
Can Property Data Accurately Predict Shifts in the Property Market?
In today's ever-changing property market, decisions can be swayed by fluctuating interest rates, population shifts, affordability concerns, and climate challenges. However, one constant remains to provide a clear path forward: data-driven insights.From guiding high-level business decisions to shaping regulatory policies, data has become the cornerstone for professionals navigating the property market. But with the proliferation of data comes the challenge of harnessing its potential. Where does one begin when seeking actionable insights in a sea of information?It all begins with technologies that can translate the vast quantities of data collected within the property industry into insights that inspire action. Whether it’s the transformative power of geospatial data, the role of predictive analytics in risk mitigation, or the implications of emerging technologies like generative AI, these technology solutions will leave their marks on the future of the property business.In this episode of Core Conversations, host Maiclaire Bolton Smith sits down with CoreLogic’s Chief Innovation Officer John Rogers to dive into the untapped potential of data and its profound impact on the future of real estate. In This Episode:2:40 – What is Climate Risk Analytics and how does it help mitigate the financial impact of climate change that the SEC now requires?5:24 – Can banks, companies, and homeowners see the effects of a changing climate on a single property?8:12 – What kind of data is needed to power forecasting efforts and define development plans?10:40 – How does geospatial data help define wildfire risk? What else can it help enterprises determine?13:33 – Erika Stanley does the numbers in the housing market in The Sip.14:51 – Have there been any surprising migration patterns that geospatial data has identified?17:31 – Who is John and why does he always have a giant screen?20:28 –  Erika Stanley reviews natural catastrophes and extreme weather events across the world.21:51 – How can we ensure that there are good data inputs powering gen AI to avoid the consequences of the adage “garbage in, garbage out”?Links: Hazard HQ Command CentralRead CoreLogic Intelligence Up Next: Some Insurers Banned AI — Will Insurtech Bring It Back?Find full episodes with all our guests in our podcast archive here: https://clgx.co/3HFslXD4 Copyright 2024 CoreLogic
What Makes Geospatial Data Unique to Expand Telco Infrastructure?
20-03-2024
What Makes Geospatial Data Unique to Expand Telco Infrastructure?
In the telecommunications industry, navigating infrastructure investments to draft a road map for 5G success is a complex but necessary undertaking. Success requires both location intelligence and geospatial data.As the needs for 5G infrastructure increase in parallel with the demand for connectivity for everything from core networks to self-driving cars and wearable devices, it’s imperative to not only understand how much connectivity to provide today but also where it will be needed tomorrow.From respecting regulatory compliance to pinpointing growth hot spots, host Maiclaire Bolton Smith and guest Joe Francica, a principal on the location intelligence product team, discuss how infrastructure planners in the telco industry can get ahead in the race for connectivity supremacy.In This Episode2:11 – What is the difference between location intelligence and geospatial data, and how dramatically can the data points influence infrastructure project placement?4:55 – How can the infrastructure required for the expansion of 5G networks rely on location intelligence?8:55 – Are there any particular regions seeing especially high demand for bandwidth?11:02 – Erika Stanley does the numbers in the housing market in The Sip.12:59 – What is the first step to define a target area for 5G infrastructure expansion?14:36 – Compliance and regulation considerations are woven into the telecommunications industry, how can location intelligent data help ensure compliance?17:18 – Why is rural 5G infrastructure a big deal?18: 02 – Erika Stanley reviews natural catastrophes and extreme weather events across the world.Links: Hazard HQ Command CentralRead CoreLogic Intelligence Up Next: Which U.S. Metros Sit in the Crosshairs of Remote Work Migration?Find full episodes with all our guests in our podcast archive here: https://clgx.co/3HFslXD4 Copyright 2024 CoreLogic
Are Investors and Interest Rates Abolishing the Dream of Homeownership?
06-03-2024
Are Investors and Interest Rates Abolishing the Dream of Homeownership?
Soaring U.S. rental prices have prompted discussions about the nation's trajectory towards a renter-centric society.From the exorbitant rental prices in Miami to the ongoing wisdom that homeownership is an advantageous financial decision, as renters and homeowners search for affordability and stability, they will need to navigate an increasingly complex market.With rental costs experiencing a staggering 30% increase over a three-year period, this episode of Core Conversations examines various factors contributing to this phenomenon, including a severe shortage of rental properties, heightened demand from new households, and the impact of high mortgage rates on homeownership rates.As Americans search for solutions to growing rental prices, build-to-rent communities have stepped into this dynamic. These developments offer solutions to the rental supply crisis but also raise questions about the long-term impact of these communities on local economies and housing market dynamics.In this episode, host Maiclaire Bolton Smith and CoreLogic Principal Economist Molly Boesel discuss the complex interplay between economic factors, housing policies, and societal trends shaping the rental landscape in the United States.In This Episode2:29 – Why are rents so expensive? Is the lack of affordability transforming the U.S. into a land of renters?7:38 – How does the recent 30% increase in rental prices compare to the long-term average? How do rent-controlled apartments skew the growth?9:10 – Looking at regional rent affordability and what happened in Miami.10:15 – How is the rental economy distributed between single-family and multifamily units? Is the build-to-rent economy further tipping the balance?           16:46 – Who is investing in these build-to-rent communities? Is it venture capitalism? Banks? Individual investors? And how are these communities impacting local economies?17:39 – Erika Stanley goes over the numbers in the housing market.18:39 – How are high rental prices correlated with the slowdown in homeownership rates?19:48 – Why are first-time homebuyers still making up a large share of buyers despite high interest rates?         21:42 – Erika Stanley reviews global natural catastrophes and their effect on the insurance market.23:00 – Are there advantages to being a renter versus a homeowner even in the current rental market?Links: Hazard HQ Command CentralRead CoreLogic Intelligence Up Next: Why US Property Retains Its Value Compared to Other Global MarketsFind full episodes with all our guests in our podcast archive here: https://clgx.co/3HFslXD4 Copyright 2024 CoreLogic
What Can 2023 Teach Us About Future Natural Catastrophes?
21-02-2024
What Can 2023 Teach Us About Future Natural Catastrophes?
It already seems like 2023 is long ago, but the consequences of natural disasters and the lessons we’ve learned from them are far from the past.Record-breaking hailstorms; devastating wildfires in Lahaina, Hawaii; and other catastrophic events made global headlines, and for good reason. Historical patterns are changing – just look at the increasing rapid intensification of storms and sea-surface temperatures. However, changing climate patterns do not mean that there is no way to ensure resilience.Research, property data, stringent building codes, and a commitment to preparedness are all lessons that insurers and homeowners can glean from 2023 to get ready to mitigate property risk for the 2024 season.In this episode, host Maiclaire Bolton Smith and CoreLogic Director of Catastrophe Response Jon Schneyer look into what happened in the world of natural catastrophes in 2023. They also examine what we can learn from these events to give listeners a deeper understanding of the complex interplay between weather phenomena, human settlement patterns, and disaster response strategies.In This Episode1:34 – What is the biggest natural catastrophe story from 2023, and why was it record-setting?4:04 – Looking into how population growth centers are increasing hail damage costs.6:20 – What dominated international headlines for natural catastrophes – it wasn’t hurricanes.8:52 – Erika Stanley goes over the numbers in the housing market in the Sip.10:12 – How did El Niño and sea surface temperatures interact to influence hurricane season 2023?13:35 – Wildfires in California were tempered, but will this continue in 2024?16:17 – Why were the wildfires in Maui so devastating?18:45 – What can we learn from these devastating natural catastrophes? (Hint: Building codes are important.)21:42 – Erika Stanley discusses current natural catastrophe events.Links:Hazard HQ Command CentralRead CoreLogic IntelligenceUp Next: Are Insurers Prepared for an El Niño-Fueled Hurricane Season?Find full episodes with all our guests in our podcast archive here: https://clgx.co/3HFslXD4 Copyright 2024 CoreLogic
Some Insurers Banned AI — Will Insurtech Bring It Back?
07-02-2024
Some Insurers Banned AI — Will Insurtech Bring It Back?
Insurance is a topic of perennial interest, but it is not often discussed for furthering cutting-edge technologies like generative AI and machine learning. However, Insurtech, with its ability to redefine business models and leverage cutting-edge technologies, has left an indelible mark on the insurance industry landscape.Whether it’s a homeowner navigating insurance policies or an industry professional charting the course for future business growth, Insurtech’s broad reach has enabled companies to take on new types of risks to reshape risk management strategies in the face of evolving climate risk and changing regulations. In this episode of Core Conversations, host Maiclaire Bolton Smith sits down with InsTech CEO Matthew Grant. The two unpack just how far the industry has come and how far things still need to go as bleeding-edge technologies come to the forefront of the international conversation and stand to bridge the gap between this traditional industry and the evolution of consumer expectations.In This Episode:3:13 – How insurance won out over technological innovations, leaving homeowners to purchase policies in a traditional manner.4:22 – So why did technology revolutionize the way insurers underwrite policies?7:22 – As data leads to increased visibility for risk, how does that affect insurers ability to offer coverage?8:40 – How tech tools put the power in the hands of a policyholder to speed up the claims process.10:17 – Where does AI have the most potential to expedite the claims process?12:52 – Erika Stanley goes over the numbers in the housing market with The Sip.13:55 – Will generative AI and algorithmic underwriting define the future of insurance decisions?16:05 – Why has reinsurance been so quick to adopt new technology?18:43 – Erika Stanley talks about what is happening in the world of natural disasters.20:21 – Is the Insurtech revolution over, or is it only beginning?Links:RAA Conference: Cat Risk Management 2024InsTech PodcastHazard HQ Command CentralRead CoreLogic IntelligenceUp Next: How Will Property Data Help Manage the California Insurance Crisis?Find full episodes with all our guests in our podcast archive here: https://clgx.co/3HFslXD4 Copyright 2024 CoreLogic
How Will Big Data Automation Impact Insurance Field Data?
24-01-2024
How Will Big Data Automation Impact Insurance Field Data?
As the claims and restoration business adapt to pressures of surging inflation, persistent labor shortages and the escalating frequency of natural disasters, automation has emerged as an investment avenue to help streamline processes and enhance efficiency.However, not all technology solutions are created equal. In an industry when data fidelity is crucial for those in the field and automation is increasingly a stopgap amid ongoing staffing challenges, the insurance claims industry is increasingly seeking solutions that address these hurdles, while adhering to complex requirements from industry standards.Discover the evolving landscape of insurance claims, the challenges it faces and the innovative solutions technology provides. Stay tuned for insights into the future, where CoreLogic Senior Principal of Industry Relations Brandon Burton unveils Mitigate, CoreLogic’s groundbreaking field documentation tool set to revolutionize data fidelity and reduce the time burden on technicians.Find out more about CoreLogic's Mitigate productIn This Episode:1:57 – How has technology altered the claims side of the insurance industry?4:08 – Why hasn’t technology already solved existing challenges within the industry?5:43 – What are some recent changes to industry standards and how have they specifically impacted the industry?8:15 – How dramatically are labor shortages affecting the claims and restoration industries?10:19 – Erika Stanley goes over the numbers in the housing market in The Sip.11:56 – How can automation help alleviate the strain imposed by labor shortages?13:03 – The American National Standards Institute maintains a list of industry standards; which standards are upcoming and which are up for revision?14:53 – Erika Stanley talks about what is happening in the world of natural disasters.16:36 – What is on the horizon for claims professionals?18:49 – What is Mitigate, and why is it going to facilitate industry advancement?Links:Brandon Burton's Podcast: Technically SpeakingHazard HQ Command CentralRead CoreLogic IntelligenceUp Next: How Will Property Data Help Manage the California Insurance Crisis?Find full episodes with all our guests in our podcast archive here: https://clgx.co/3zqhBZt4 Copyright 2024 CoreLogic
Which U.S. Metros Sit in the Crosshairs of Remote Work Migration?
10-01-2024
Which U.S. Metros Sit in the Crosshairs of Remote Work Migration?
In the first episode of Season 4 of Core Conversations, Host Maiclaire Bolton Smith and CoreLogic Chief Economist Selma Hepp dive into the aftermath of the pandemic's influence on migration patterns and how remote work has reshaped the housing landscape.While the pandemic may no longer dominate headlines, it continues to exert its influence. Remote work opportunities flourished, prompting an exodus from high-cost coastal metros to more affordable regions. This migration then spurred home price inflation across the country, while also altering income distribution, patterns of gentrification and urban sprawl.The consequences for major cities are profound. Already, large metros have been presented with challenges in retaining high-wage workers, navigating shrinking tax bases and facing declining home prices. Conversely, smaller towns have experienced upticks in wages and local spending.This episode explores the ripple effects of these changes, discussing how cities like San Francisco and New York are adapting and how smaller, more affordable metros are seizing opportunities. Similarly, going forward, it will be critical to ponder the long-term consequences of remote work on cities' functions and how they can reinvent themselves.LinkedIn Remote Work StudyFannie Mae study: Remote Work and Housing Location PreferencesSelma Hepp's Op-Ed on pandemic migrationRead CoreLogic IntelligenceCopyright 2024 CoreLogic In This Episode:2:29 – What is "pandemic migration" and how did remote work enable this trend?4:05 – Will there be any long-term consequences for cities and towns from remote work migration?7:06 – What are the economic and housing market implications of migration to more affordable areas?10:28 – Erika Stanley goes over the numbers in the housing market in The Sip.12:13 – What is the future for America's high-price cities and tech hubs?16:11 – How will migration influence the future of small towns?17:33 – Erika Stanley reviews natural catastrophes and extreme weather events across the world.18:40 – How have U.S. home prices fared in the face of this continued migration? 22:44 – How have high interest rates affected migration trends and home prices?Links:Read CoreLogic IntelligenceRegister for INTRCONNECT...
2023 Economic Look Back: A Tale of Two Housing Markets
29-11-2023
2023 Economic Look Back: A Tale of Two Housing Markets
In the season finale of Core Conversations, host Maiclaire Bolton Smith and CoreLogic Chief Economist Selma Hepp dive into a discussion about the dynamic landscape of the U.S. housing market in 2023.This year, mortgage rates surged by almost 500 basis points, home prices catapulted by 42% over three years and mortgage payments witnessed a staggering 60% hike. This episode peels back the layers of the housing market, exploring the sometimes-contrasting contexts of the real estate sector with the larger economy.One of the major topics that this discussion covers is why some homeowners can navigate these economic shifts while others grapple with pressing affordability challenges. Although housing affordability is a crucial point for both homeowners and renters, according to Pete Carroll, executive of public policy for CoreLogic, the affordable housing crisis is a bit of a misnomer. At its core, the crisis is due to a lack of housing inventory with respect to demand. So, how is it that the U.S. has arrived at a point where inventory is low, prices and interest rates are climbing, and rentals seem out of reach in some markets?As 2023 comes to an end, join the conversation to reflect on what happened, where we are now, and what we can expect in the future of the U.S. housing economy.In This Episode:1:58 – What have the general trends been in the U.S. economy in 2023?4:09 – Why was there a disconnect in how the housing market and the overall economy fared?6:05 – How much of the Consumer Price Index (CPI) does housing represent? Did inflation dramatically effect this percentage?7:47 – Discussing the housing market slowdown of 202310:35 – Erika Stanley reviews the number in the housing market in The Sip.12:08 – How did the U.S. rental market do in 2023?15:26 – What is the future for adjustable-rate mortgages (ARMs) with the current rates of inflation?18:05 – How did the lock-in effect affect the overall housing market?Links:Read CoreLogic IntelligenceRegister for INTRCONNECT 2024Up Next: Occupancy Fraud May Be the Next Risk for the Mortgage IndustryFind full episodes with all our guests in our podcast archive here: https://clgx.co/3zqhBZt
Why the US Mortgage System Is a Shield From Inflation
15-11-2023
Why the US Mortgage System Is a Shield From Inflation
Ever wondered why the U.S. mortgage market offers 30-year, fixed-rate mortgages and what impact this unique loan offering has on housing prices? This is a question that host Maiclaire Bolton Smith and CoreLogic Professional Economist Thom Malone dive into during part two of this episode on the differences between the U.S. and international housing markets.From the surprising benefits of the U.S. system for homeowners to the potential hazards in concentrating mortgage risk, this conversation explores the effects of inflation on housing prices, drawing connections to global trends. Stay tuned until the end for insights into if and where property markets will experience shifts in the upcoming months. To continue the conversation and connect the dots between interest rates, inflation and housing prices, make sure to tune into Episode 60 as well.In This Episode1:04 – What are the advantages/disadvantages of the U.S.’s 30-year, fixed-rate mortgage system?2:56 – How do interest rate increases affect housing prices in other countries?5:46 – Are there specific U.S. markets where we’re seeing the potential for people to default on their mortgages?8:20 – How does the national cycle of housing price change express itself? (Hint: like a waterfall)10:50 – Are international markets seeing similar home price trends to the U.S.?12:11 – Erika Stanley reviews natural catastrophes and extreme weather events across the globe.13:51 – What can we expect to see from home prices in the next few months?Links:Read CoreLogic IntelligenceRegister for INTRCONNECT 2024Hazard HQ Command CentralTM natural disaster coverageMore First-Time Homebuyers Reside in Midwestern and High-Tech Coastal MetrosThom Malone author pageUp Next: Why US Property Retains Its Value Compared to Other Global MarketsFind full episodes with all our guests in our podcast archive here: https://clgx.co/3zqhBZt
Why US Property Retains Its Value Compared to Other Global Markets
08-11-2023
Why US Property Retains Its Value Compared to Other Global Markets
Property is the world’s largest asset class, so any fluctuation within this market has far-reaching effects. Just consider how property values in countries like Australia, New Zealand, Canada, the U.K., and the U.S. have sent ripples throughout the global economy.There are many factors that affect the housing market, and one is the amount of investment activity. Investors contributed to the dramatic home price growth seen in recent years. The surge in investor activity significantly impacted home prices, but the precise extent of this influence remains a subject of ongoing debate among economists.Another factor affecting the property market is interest rates. When these rates plummeted several years ago, housing prices surged across the world. Then rates began to climb, and the substantial home price gains seen in the aforementioned countries began to correct. But home prices in the U.S. have remained above their 2020 peak, defying expectations.That leaves the question: Why is the U.S. an outlier in the property market?In this episode, host Maiclaire Bolton Smith sits down with CoreLogic Professional Economist Thom Malone to discuss the effect that the U.S. securitized mortgage system and investor activity has had on both the national and global property markets.In This Episode:2:04 – What has happened to housing prices since the pandemic and what makes 2023 such a pivotal year?5:47 – Who are the investors that are participating in the market? Who are the mega investors and what role do they play?8:33 – How has investor activity impacted home prices?10:54 – Erika Stanley goes over the numbers in the housing market in The Sip.12:05 – What is happening in the world of international housing prices?14:16 – What are the advantages and disadvantages of the U.S.’s securitized mortgage system?19:53 – Maiclaire Bolton Smith and Thom Malone talk about their experiences speaking with friends from their home countries about buying a house in the U.S.Links: Read CoreLogic IntelligenceRegister for INTRCONNECT 2024Up Next: What Is the Future of Mortgage Interest Rates in the Current Real Estate Market?Find full episodes with all our guests in our podcast archive here: https://clgx.co/3zqhBZt
How Could Gig Work and Automation Lead to More Mortgage Fraud?
25-10-2023
How Could Gig Work and Automation Lead to More Mortgage Fraud?
Instances of mortgage fraud have remained relatively stable in recent years. In the second quarter of 2023, CoreLogic estimates that 1 in 134 applications contained fraud, up from 1 in 131 during the same period in 2022. But that doesn’t mean that lenders shouldn’t be on the lookout for warning signs.In the 2023 Mortgage Fraud Report, researchers found that suspected occupancy loans have nearly tripled since 2020. This type of fraud, which is difficult to spot during origination, typically occurs when someone identifies an investment property as a primary residence to obtain more favorable rates. Not only is this subcategory of fraud requiring more attention, but a changing economy and the increase in automation is bringing unique challenges to the industry.In this episode, host Maiclaire Bolton Smith sits down with Bridget Berg, a senior leader in loan solutions at CoreLogic, to talk about who ends up paying when someone defaults on a loan and how automation may open the door for increased fraud. In This Episode:0:53 – Who ends up paying when someone default on a loan that has fraud and what happens to lenders that have to buy back loans?4:10 – Does the normalization of automated underwriting have the potential to lead to more mortgage fraud?6:30 – Are cash-based borrowers without traditional credit histories turning mortgage fraud more of a concern?9:07 – Erika Stanley gives an overview of natural disaster headlines from CoreLogic's Hazard HQ Command Central.10:58 – What does the future of fraud risk look like.Links:Why Extreme Heat-Related Property Risk Is the Next Significant Business HurdleHazard HQ Command Central Natural Disaster Coverage2023 Mortgage Fraud ReportOctober 2023 U.S. Home Price Insights ReportUp Next: HELOC Loans May Be the Next Threat for Mortgage FraudFind full episodes with all our guests in our podcast archive here: https://clgx.co/3zqhBZt
Occupancy Fraud May Be the Next Risk for the Mortgage Industry
18-10-2023
Occupancy Fraud May Be the Next Risk for the Mortgage Industry
Elevated interest rates have had ripple effects across the U.S. property market. From the appearance of the lock-in effect, which has slowed down home purchases, to increasing questions of affordability, the climbing cost of taking out a mortgage has spurred many to consider how to lower the price tag.One trend that CoreLogic® has spotted in the property market is an increase in suspected occupancy fraud. In the 2023 Mortgage Fraud Report, researchers found that suspected occupancy loans have nearly tripled since 2020. This type of fraud, which is difficult to spot during origination, typically occurs when someone identifies an investment property as a primary residence to obtain more favorable rates.Despite this uptick in the subcategory, the overall instance of mortgage fraud has remained relatively flat. In the second quarter of 2023, CoreLogic estimates that 1 in 134 applications contained fraud, up from 1 in 131 during the same period in 2022.But occupancy fraud is not the only tactic on the table. In this episode, host Maiclaire Bolton Smith sits down with Bridget Berg, a senior leader in loan solutions at CoreLogic, to talk about the types of mortgage fraud, where it is most prevalent in the industry and why it can be so difficult to detect.In This Episode:2:19 – An overview of the prevalence of fraud through the years.3:56 – Host Maiclaire describes what it’s like to go through a routine audit following a mortgage, and guest Bridget Berg explains the different ways people can defraud lenders.5:56 – Is there more fraud happening now than in previous years? How did the pandemic change the trend?8:29 – Why should occupancy fraud should be top of mind for lenders?9:47 – Is mortgage fraud difficult to detect, and are there triggers and are there ways that lenders can identify risks?11:16 – Erika Stanley goes over the numbers in the property market in The Sip.12:33 – A discussion about the fraud risk associated with occupancy declarations and HELOC loans.Links:2023 Mortgage Fraud ReportOctober 2023 U.S. Home Price Insights ReportUp Next: HELOC Loans May Be the Next Threat for Mortgage FraudFind full episodes with all our guests in our podcast archive here: https://clgx.co/3zqhBZt
How Will Climate Change Influence Wildfires in the US?
04-10-2023
How Will Climate Change Influence Wildfires in the US?
Wildfires are an annual occurrence in many areas of the U.S. However, as our climate changes, fires are beginning to ignite in areas that are traditionally at low risk. Just look at the Hawaiian island of Maui.Despite the increasing number of regions experiencing wildfires, only about 9% of U.S. properties meet the threshold for high or extreme wildfire risk. So how exactly is this risk measured and what role can mitigation play in reducing this natural danger?In this episode host Maiclaire Bolton Smith sits down with CoreLogic Chief Actuary Howard Kunst to talk about this subject. The two will discuss the wildfire season with a focus on California — one of the most high-profile, wildfire-burdened states in the country — and how the historic rainfall from earlier this year will influence upcoming wildfire risk.In This Episode:1:25 – California had one of the wettest winters on record last year. How has that changed wildfire risk in the state? Hint: It didn’t necessarily improve things.4:08 – Why is awareness of wildfires important for mitigation and how do we create awareness in low-risk areas?6:07 – Is climate change really making wildfires worse?7:30 – Erika Stanley talks about extreme weather events in the Natural Disaster Digest.Links:U.S. Home Price Insights ReportWildfire Risk ReportHow Will Property Data Help Manage the California Insurance Crisis?Up Next: Does Low Wildfire Risk Create a False Sense of Security?Find full episodes with all our guests in our podcast archive here: https://clgx.co/3zqhBZt
Does Low Wildfire Risk Create a False Sense of Security? Spoiler: Yes
27-09-2023
Does Low Wildfire Risk Create a False Sense of Security? Spoiler: Yes
Knowing the wildfire risk of a home is becoming increasingly important — both for homeowners and insurers. However, it is insufficient to simply know that there is a probability of a wildfire occurring at a certain property. It is imperative to understand the development of historic risks into current risks and how this score will evolve in the future. After all, low risk today does not mean no risk tomorrow.While only about 9% of U.S. properties meet the threshold for high or extreme wildfire risk, it is worth questioning why wildfires are creating increasingly large damage figures for homeowners and insurers. In short, climate change, where homes are built, and their construction type all play a role.However, that is not the full story.Understanding how risk scores are created, what a property’s risk score actually means, and knowing how to promote mitigation — even among homes that qualify as low risk — are essential strategies for maintaining safety in environments that are experiencing prolonged and more frequent wildfire seasons than usual.In this episode, host Maiclaire Bolton Smith sits down with CoreLogic Chief Actuary Howard Kunst to talk about wildfire risk, how to use a risk score to map those potential threats, and what different actions insurers can take based on the score.In this Episode:2:14 – How do we calculate wildfire risk?3:25 – How are these scores used and why are they different than probabilistic models?7:04 – How long is a risk score valid, and why is it wise to annually evaluate risk scores across a property portfolio?8:52 – What are the thresholds for low, medium and high risk? Why are nearly all U.S. properties low risk?12:08 – Erika Stanley goes over the numbers in the property market with The Sip.13:15 – Why are low-risk areas like Maui, Hawaii seeing wildfire events that cause widespread devastation?Links:U.S. Home Price Insights ReportWildfire Risk ReportHow Will Property Data Help Manage the California Insurance Crisis?Up Next: Can Wildfire Mitigation Stop the California Insurer Exodus?Find full episodes with all our guests in our podcast archive here: https://clgx.co/3zqhBZt