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skyscraper-m-report-tree-ad-feb.pdf 1 2/1/2012 11:05:58 AM FEATURE ANALYTICS The Source of Confidence is Certainty. 2006 Q2, which, when combined with home equity loans and loans of credit, produced equity withdrawals of $89.7 billion. In the four years since the recession began, equity withdrawals through refinancing aver- aged $14.1 billion per quarter, while the aver- age median quarterly property appreciation was 1 percent; in the preceding four years, the quarterly average withdrawal was $60.1 billion, while median appreciation averaged 23 percent. Six Parts to the Refi Product Transition Report T he Refinance Product Transition Report publishes the distribution of loan products that borrowers chose when they refinanced their existing first mortgage. For each type of loan held by borrowers initially, you can see what proportion kept the same product or opted for a different one. The report examines ins and outs of six product categories: 1. One-year adjustable-rate mortgages (this data includes some other types of loans for which rates reset at an equal frequency, such as 3/3 and 5/5 ARMs, etc.). 2. Hybrid ARMs (ARMs with the first rate re- set period longer than subsequent rate reset periods, such as 3/1 ARMs, 5/1 ARMs, etc.). 3. Balloon mortgages (loans that have one interest-rate adjustment, such as 5/25s, etc.). 4. 15-year fixed-rate mortgages (FRMs; includes data on some shorter-term loans). 5. 20–25-year FRMs. 6. 30-year FRMs. All data are reported for the U.S. Trends for the transition report show a sharp move to shorter loan terms, with bor- rowers moving from 20- and 30-year fixed- rate loans to 15-year fixed-rate loans, a trend that has accelerated since the beginning of 2010. From 2004 through 2009, the tendency had been to move to longer terms, from 15- and 20-year loans to 30-year loans. Data from these reports can alert lenders as to the types of products borrowers prefer, to adjust sales strategies, but at the same time can be used by macroeconomists to understand consumer attitudes. In this case, it would appear consumers are increasingly reluctant to take on long-term obligations, another indicator of lower levels of confi- dence in the economy. The devil, of course, is in the details. Turn to the original. C M Y CM MY CY CMY K First American Data Tree provides lenders and servicers a suite of products and services from document retrieval to custom data solutions, designed to streamline operations and provide the necessary intelligence for making sound lending decisions. Data from these reports can alert lenders as to the types of products borrowers prefer, to adjust sales strategies, but at the same time can be used by macroeconomists to understand consumer attitudes. Be Certain. ™ Rely on a brilliant source. www.DataTree.com/theMreport First American Data Tree LLC makes no expressed or implied warranty respecting the information presented and assumes no responsibility for errors or omissions. ©2012 First American Data Tree LLC, a division of First American Financial Corporation. All rights reserved. THE M REPORT | 65 ORIGINATION SERVICING ANALYTICS SECONDARY MARKET