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15 Nationwide Property Inspections and Preservation Inspections Preservation Insurance Loss Inspections REO Services Violation Management Utility Management Vacant Property Registrations Foreclosure Registrations Special Services Protecting your properties. Protecting you. NFROnline.com • 800-639-2151 x 2220 THE LEADER IN DEFAULT SERVICING NEWS Help shape the next issue of DS News. Drop us a line at Editor@DSNews.com. A LOOK AT COMBINED LOAN- TO-VALUE RATIOS An analysis of the CLTV ratio, by price bucket, shows that homebuyers in 2019 borrowed more for homes in the same price range than they did in 2015, according to a new study from CoreLogic. e report reveals that "median home price in 2019 for mortgaged home sales was roughly $260,000, with an estimated average CLTV of 89%. Conversely, in 2015, homebuyers averaged a CLTV of 88% for homes when spending the same amount." e report also shows that, adjusting for home-price appreciation, CLTVs at the low end have not experienced much change. CoreLogic explains that, from 2015–2019, the median sale price increased by 17%. e report states, "While in 2015, purchase mortgages at the median sale price had roughly the same average CLTV as those sold around the median price in 2019. By accounting first for home-price appreciation, we can provide a fair comparison of the average CLTV by price bucket." Adjusting 2015 median sale price amounts in light of 2019 home appreciation, the average CLTV for homes sold was roughly the same in both years, CoreLogic reports. For home sales with a sale price amount equal to or exceeding 125% of the national median (considered "high-tier" by CoreLogic), "the CLTV in 2019 averaged about 1 percentage point less than in 2015." Between 2015–2019, nationwide home values grew an average of 22%—"possibly contributing to the improvement in CLTV for high-end home purchases," according to CoreLogic. As such, homebuyers selling an existing home in 2019 "would likely have benefited from increases in home equity, resulting in additional funds to put towards a down payment on the new home." "In recent years we've seen a steady pattern of higher CLTV ratios within low-end purchases markets and a steady CLTV decrease as the home becomes more expensive," said CoreLogic. "e pattern could be in part due to lower-priced entry-level homes being sold to buyers without established home equity to help with a down payment. ... After adjusting for changes in home price growth, there has been very little change in the average CLTV by price bucket except for a slight decline with higher-end sales."