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IN THE NEWS Cleveland Fed Finds Underwater Homeowners More Likely to Relocate for Jobs A report released by the Federal Reserve Bank of Cleveland answers the question: "Is negative equity preventing unemployed homeowners from moving to take on new jobs?" If underwater homeowners are hesitant to sell their homes and move for employment opportunities, as some have conjectured, then the housing crisis has perhaps exacerbated the nation's high unemployment rate. The Fed researchers point out, though, "If a job is available, the economic benefit of accepting it outweighs the potential costs of disposing of the home." The researchers find that mobility did decline during the housing crisis, particularly in states with high levels of underwater homeowners. In 2006 and 2007, the rate of homeowners moving to another state was more than 1 percent in 37 states. In 2008 and 2009, that number decreased to 23 states. In Arizona, where 51 percent of homeowners were underwater in late 2009, the mobility rate decreased from 1.7 percent in 2007 to 1.4 percent two years later. Similarly in California, 35 percent of homeowners were underwater at the end of 2009, and the mobility rate declined from 0.8 percent in 2007 to 0.6 percent in 2009. However, high underwater rates occurring alongside declining mobility rates does not necessarily signify a cause-and-effect relationship. After further examination, the Cleveland Fed found "negative equity does not limit job-related mobility and, hence, is not a major reason for elevated aggregate unemployment in the United States." In fact, the opposite appears to be true. "Our results show that individuals with low equity actually move more than those with high equity," the researchers said. Homeowners with homes valued at less than 80 percent of their mortgage debt are about 1 percent more likely to move for a job than homeowners with 20 percent positive equity in their homes, according to the study. 90 Oklahoma Pennsylvania rank: 19 90+ Day Delinquency Rate Foreclosure Rate May 2013 1.9% rank: 14 Unemployment Rate 2.8% 5.0% 90+ Day Delinquency Rate Foreclosure Rate May 2013 2.7% 3.2% year ago 2.1% 3.3% 5.1% 2.6% 3.9% -2.0% 3.9% -18.3% Top County 90+ Day Delinquency Rate Monroe CounTy 90+ Day Delinquency Rate May 2013 Foreclosure Rate 10.5% 5.6% year ago 8.1% 5.7% year-over-year change 49.4% Foreclosure Rate 12.6% year ago 2.7% -5.1% Top County May 2013 4.1% 7.9% year-over-year change -15.9% AdAir COunTy 7.5% year ago year-over-year change -9.6% Unemployment Rate 13.3% year-over-year change 29.3% -1.1% -5.8% Top Core-Based Statistical Area Top Core-Based Statistical Area MiAMi, OK eAST STroudSBurg, PA 90+ Day Foreclosure Delinquency Rate Rate May 2013 90+ Day Delinquency Rate Foreclosure Rate May 2013 2.7% 5.7% 5.6% 12.6% year ago 2.8% year ago 6.1% 5.7% year-over-year change -1.2% -6.7% -1.1% note: The 90+ day delinquecy rate is the percentage of outstanding mortgage loans that are seriously delinquent. The foreclosure rate is the percentage of outstanding mortgage loans currently in foreclosure. State rank is based on the May 2013 foreclosure rate. All figures are rounded to the nearest decimal. The unemployment rate reflects preliminary May 2013 figures released by the Bureau of Labor Statistics. All other data courtesy of LPS Applied Analytics. rank: 16 Foreclosure Rate April 2013 1.9% Unemployment Rate 3.2% 8.0% year ago 2.0% 3.6% 8.8% year-over-year change -6.6% -9.1% -9.1% Top County 90+ Day Delinquency Rate CrOOk COunTy Foreclosure Rate April 2013 2.0% 6.7% year ago 2.3% 7.6% year-over-year change -14.4% -12.2% Top Core-Based Statistical Area Prineville, Or 90+ Day Delinquency Rate Foreclosure Rate April 2013 2.0% 6.7% year ago 2.3% 7.6% year-over-year change -14.4% -5.8% note: The 90+ day delinquecy rate is the percentage of outstanding mortgage loans that are seriously delinquent. The foreclosure rate is the percentage of outstanding mortgage loans currently in foreclosure. State rank is based on the May 2013 foreclosure rate. All figures are rounded to the nearest decimal. The unemployment rate reflects preliminary May 2013 figures released by the Bureau of Labor Statistics. All other data courtesy of LPS Applied Analytics. IN THE NEWS Oregon 90+ Day Delinquency Rate 13.3% year-over-year change -12.2% note: The 90+ day delinquecy rate is the percentage of outstanding mortgage loans that are seriously delinquent. The foreclosure rate is the percentage of outstanding mortgage loans currently in foreclosure. State rank is based on the April 2013 foreclosure rate. All figures are rounded to the nearest decimal. The unemployment rate reflects preliminary April 2013 figures released by the Bureau of Labor Statistics. All other data courtesy of LPS Applied Analytics. Global DMS Integrates Valuation Software with DataQuick Solution Lansdale, Pennsylvania-based Global DMS announced the integration of its valuation management software with DataQuick's Collateral Validation solution. The integration allows for more accurate valuations by utilizing DataQuick's in-depth, area-based metrics; trending; and other factors that are not typically taken into account when underwriting loans, according to Global DMS. DataQuick's Collateral Validation solution ensures specific values fall within acceptable ranges by utilizing such data sources as multiple listing services (MLS), automated valuation models, neighborhood-level house price indexes, inventory and sales trends metrics, foreclosure data, and other housing analytics. The results are then incorporated into Global DMS' valuation determination, thus producing a highly accurate, quality appraisal.