Safeguard Properties

Trump Nominates Former CFPB Deputy Brian Johnson to Lead Bureau

Posted on by Safeguard

Industry Update
June 11, 2026

Source: Mortgage Professional America

President Donald Trump moved Wednesday to give the Consumer Financial Protection Bureau (CFPB) its first permanent director since returning to office, nominating Brian Johnson, a former agency insider with deep roots in Capitol Hill and the mortgage industry, to lead the bureau.

Johnson served as CFPB deputy director from 2018 to 2020 under Kathy Kraninger during Trump’s first term, where he had significant sway over what the bureau did and did not pursue. Before joining the CFPB, he spent more than 12 years on Capitol Hill, including as chief counsel for the House Committee on Financial Services.

After leaving the bureau in 2020, he worked as a managing director at Patomak Global Partners before moving to Capital One, where he most recently served as vice president and US card compliance officer.

The timeline of Johnson’s confirmation is unknown, but this is not the first time the Trump administration has moved to fill the role.

In November 2025, the White House nominated Stuart Levenbach, an Office of Management and Budget associate director, in a move widely described as a tactical maneuver to extend acting director Russell Vought’s tenure beyond the 210-day limit under the Federal Vacancies Reform Act. Vought’s authority was set to run out in August, making a genuine nominee a practical necessity.

A known quantity in the industry

Johnson’s background is well known to the mortgage industry. His time as deputy director coincided with a period when the bureau pulled back on enforcement activity, a move the industry largely welcomed. In 2023, he told the House Financial Services Committee that the CFPB was “ripe for reform” but also that “properly structured and managed, the CFPB is capable of great good.”

The Mortgage Bankers Association (MBA) moved quickly to welcome the nomination. Bob Broeksmit, MBA president and CEO, said Johnson’s track record gave the industry confidence in the pick.

“MBA welcomes the nomination of Brian Johnson to serve as Director of the CFPB,” Broeksmit said. “Johnson brings deep experience and knowledge in consumer financial services policy and law, including service as CFPB Deputy Director and in senior policy roles at the Bureau, where he helped oversee rulemaking, supervision, and enforcement activities.

“The CFPB is an important partner to our industry, and we will continue to work together to advance reforms that lower costs, reduce unnecessary regulatory burdens, and improve access to sustainable homeownership opportunities.”

What brokers are watching

Despite a downsizing of the organization in the first year of the second Trump administration term, there is work to be done. The CFPB submitted a rulemaking to rescind loan originator compensation requirements under the Truth in Lending Act in June 2025, and the industry has been waiting for movement on that proposal since. A confirmed director with Johnson’s background could accelerate that process, though no timeline has been publicly indicated.

Vought’s reduced footprint at the bureau also pushed enforcement activity to the states, leaving brokers operating across multiple jurisdictions to navigate a patchwork of requirements. A permanent director with a clear policy direction could settle some of that uncertainty.

Johnson’s nomination now goes to the Senate Banking Committee, where Sen. Elizabeth Warren of Massachusetts, the bureau’s most prominent advocate, is the top-ranking Democrat. Warren did not hold back.

“Starting in August, Russ Vought can no longer legally serve as Donald Trump’s hatchet man at the CFPB,” Warren said. “So here comes the next hatchet man to try to finish the job and gut an agency that has returned more than $21 billion to cheated consumers.”

 

For full report, please click the source link above.

 

U.S. Foreclosure Rates by State – May 2026

Posted on by Safeguard

Industry Update
June 12, 2026

Source: ATTOM

What Is the Current Foreclosure Rate in the U.S.?

In May 2026, U.S. foreclosure activity declined from the prior month but remained higher than levels reported one year earlier, reflecting a continued normalization trend in the housing market.

Total filings: 40,355 properties with default notices, scheduled auctions, or bank repossessions

Monthly change: Down 5 percent from April 2026

Year-over-year change: Up 14 percent from May 2025

National rate: One in every 3,562 housing units had a foreclosure filing

States with the worst foreclosure rates: Florida, South Carolina, Maryland, Nevada, Indiana

Foreclosure Starts and Completions

Starts: Lenders initiated the foreclosure process on 27,304 U.S. properties in May 2026, down 4 percent from the previous month but up 13 percent from a year ago.

Completions (REOs): Lenders repossessed 4,092 properties in May 2026, down 20 percent from the previous month but up 6 percent from a year ago.

What’s Driving May 2026 Foreclosure Trends?

Foreclosure activity in May 2026 declined month over month but remained above year-ago levels, continuing a broader normalization trend. While filings eased compared with April, elevated levels relative to last year suggest lenders are still working through distressed inventory. At the same time, strong homeowner equity, disciplined lending practices, and sustained housing demand continue to keep broad foreclosure pressure in check.

Foreclosure Rates by State –  May 2026

Below is the complete state-by-state foreclosure ranking for May 2026 and the top 4 counties with the worst foreclosure rates per state.

  1. Florida

1 in every 2,110 housing units (4,861 filings / 10,256,470 units)

Counties: Hamilton, Charlotte, Hendry, Osceola

  1. South Carolina

1 in every 2,287 housing units (1,068 filings / 2,443,039 units)

Counties: Kershaw, Union, Richland, Greenwood

  1. Maryland

1 in every 2,369 housing units (1,081 filings / 2,560,784 units)

Counties: Baltimore City, Charles, Allegany, Dorchester

  1. Nevada

1 in every 2,386 housing units (556 filings / 1,326,471 units)

Counties: Lyon, Clark, Mineral, Nye

  1. Indiana

1 in every 2,516 housing units (1,183 filings / 2,976,568 units)

Counties: Lake, Grant, Vermillion, Perry

  1. Utah

1 in every 2,576 housing units (475 filings / 1,223,468 units)

Counties: Garfield, Tooele, Sevier, Sanpete

  1. Arizona

1 in every 2,579 housing units (1,238 filings / 3,192,839 units)

Counties: Pima, Pinal, Mohave, Cochise

  1. Delaware

1 in every 2,780 housing units (167 filings / 464,203 units)

Counties: Kent, New Castle, Sussex

  1. New Jersey

1 in every 2,836 housing units (1,337 filings / 3,791,354 units)

Counties: Salem, Cumberland, Camden, Sussex

  1. Illinois

1 in every 2,869 housing units (1,902 filings / 5,457,452 units)

Counties: Mason, Dewitt, Clay, Ford

  1. Texas

1 in every 2,952 housing units (4,109 filings / 12,128,515 units)

Counties: Liberty, Camp, Hill, Bee

  1. Ohio

1 in every 2,963 housing units (1,786 filings / 5,292,391 units)

Counties: Cuyahoga, Muskingum, Portage, Brown

  1. Iowa

1 in every 3,008 housing units (478 filings / 1,437,699 units)

Counties: Pocahontas, Taylor, Cass, Washington

  1. North Carolina

1 in every 3,181 housing units (1,539 filings / 4,895,668 units)

Counties: Gates, Camden, Onslow, Edgecombe

  1. Oklahoma

1 in every 3,251 housing units (546 filings / 1,775,127 units)

Counties: Logan, Woods, Coal, Garvin

  1. Alabama

1 in every 3,437 housing units (680 filings / 2,337,265 units)

Counties: Fayette, Clarke, Coosa, Mobile

  1. Colorado

1 in every 3,489 housing units (742 filings / 2,589,053 units)

Counties: Sedgwick, Pueblo, Dolores, Arapahoe

  1. California

1 in every 3,541 housing units (4,136 filings / 14,644,735 units)

Counties: Lake, Butte, Sutter, Kern

  1. Georgia

1 in every 3,657 housing units (1,242 filings / 4,541,835 units)

Counties: Butts, Taliaferro, Bibb, Walton

  1. New Mexico

1 in every 3,738 housing units (256 filings / 956,964 units)

Counties: Torrance, Valencia, Roosevelt, Colfax

  1. Louisiana

1 in every 3,779 housing units (558 filings / 2,108,902 units)

Counties: Ascension, Tangipahoa, Plaquemines, Livingston

  1. Michigan

1 in every 3,845 housing units (1,202 filings / 4,622,236 units)

Counties: Saint Joseph, Tuscola, Lapeer, Calhoun

  1. Pennsylvania

1 in every 4,260 housing units (1,363 filings / 5,806,452 units)

Counties: Delaware, Cambria, Philadelphia, Allegheny

  1. New York

1 in every 4,444 housing units (1,932 filings / 8,585,241 units)

Counties: Washington, Rockland, Montgomery, Tioga

  1. Connecticut

1 in every 4,469 housing units (345 filings / 1,541,822 units)

Counties: Naugatuck Valley, South Central Connecticut, Northwest Hills, Greater Bridgeport

  1. Wyoming

1 in every 4,470 housing units (62 filings / 277,141 units)

Counties: Goshen, Platte, Campbell, Carbon

  1. Minnesota

1 in every 4,537 housing units (561 filings / 2,545,030 units)

Counties: Isanti, Yellow Medicine, Roseau, Mahnomen

  1. Kentucky

1 in every 4,840 housing units (418 filings / 2,023,116 units)

Counties: Jefferson, Hardin, Carroll, Kenton

  1. Maine

1 in every 4,947 housing units (152 filings / 751,876 units)

Counties: Aroostook, Kennebec, Hancock, Knox

  1. Arkansas

1 in every 5,090 housing units (274 filings / 1,394,673 units)

Counties: Howard, Madison, Searcy, Clark

  1. Idaho

1 in every 5,300 housing units (150 filings / 795,014 units)

Counties: Lewis, Oneida, Jefferson, Bonner

  1. Massachusetts

1 in every 5,421 housing units (559 filings / 3,030,406 units)

Counties: Franklin, Hampden, Bristol, Plymouth

  1. Nebraska

1 in every 5,535 housing units (156 filings / 863,444 units)

Counties: Thayer, Red Willow, Fillmore, Hamilton

  1. Missouri

1 in every 5,606 housing units (504 filings / 2,825,287 units)

Counties: Dunklin, Randolph, Mcdonald, Pettis

  1. Virginia

1 in every 5,934 housing units (621 filings / 3,684,756 units)

Counties: Martinsville City, Franklin City, Sussex, Bland

  1. Alaska

1 in every 6,952 housing units (46 filings / 319,781 units)

Counties: Ketchikan Gateway, Bethel, Matanuska-Susitna, Kenai Peninsula

  1. Oregon

1 in every 7,202 housing units (258 filings / 1,857,992 units)

Counties: Sherman, Clatsop, Columbia, Josephine

  1. North Dakota

1 in every 7,546 housing units (50 filings / 377,281 units)

Counties: Sargent, Stark, Burke, Dunn

  1. New Hampshire

1 in every 7,720 housing units (84 filings / 648,472 units)

Counties: Belknap, Coos, Merrimack, Rockingham

  1. Hawaii

1 in every 8,230 housing units (69 filings / 567,896 units)

Counties: Maui, Honolulu, Hawaii, Kauai

  1. Mississippi

1 in every 8,330 housing units (161 filings / 1,341,114 units)

Counties: Sunflower, Webster, Humphreys, Pearl River

  1. Tennessee

1 in every 8,496 housing units (370 filings / 3,143,670 units)

Counties: Sequatchie, Lake, Rhea, Hardeman

  1. West Virginia

1 in every 8,880 housing units (97 filings / 861,325 units)

Counties: Wayne, Kanawha, Pleasants, Boone

  1. Washington

1 in every 9,059 housing units (365 filings / 3,306,620 units)

Counties: Franklin, Stevens, Cowlitz, Grays Harbor

  1. Montana

1 in every 10,568 housing units (50 filings / 528,419 units)

Counties: Fallon, Mineral, Chouteau, Custer

  1. Kansas

1 in every 10,871 housing units (119 filings / 1,293,635 units)

Counties: Greeley, Edwards, Norton, Barber

  1. Wisconsin

1 in every 10,982 housing units (253 filings / 2,778,572 units)

Counties: Kewaunee, Racine, Dodge, Pepin

  1. Rhode Island

1 in every 11,301 housing units (43 filings / 485,932 units)

Counties: Kent, Providence, Washington, Newport

  1. South Dakota

1 in every 15,581 housing units (26 filings / 405,114 units)

Counties: Mccook, Meade, Turner, Yankton

  1. Vermont

1 in every 22,603 housing units (15 filings / 339,042 units)

Counties: Grand Isle, Washington, Rutland, Lamoille

Key Insights from May 2026 Foreclosure Market Report

Foreclosure activity in May 2026 declined compared with the previous month but remained above year-ago levels, reinforcing the ongoing normalization trend. Both foreclosure starts and completed foreclosures pulled back from April levels while continuing to reflect elevated activity relative to last year. Despite these increases, overall foreclosure activity remains well below historic peaks.

 

For full report, please click the source link above.

 

Foreclosure Filings Dip Month-Over-Month While Annual Trend Continues Upward

Posted on by Safeguard

Industry Update
June 11, 2026

Source: ATTOM

ATTOM, the leading provider of property data, AI-powered intelligence, and real estate analytics solutions, today released its May 2026 U.S. Foreclosure Market Report, which shows there were a total of 40,355 U.S. properties with foreclosure filings— default notices, scheduled auctions or bank repossessions — down 5 percent from a month ago and up 14 percent from a year ago.

“While foreclosure activity eased from April levels, the broader trend remains one of gradual year-over-year growth,” said Rob Barber, CEO at ATTOM. “Foreclosure starts and completed foreclosures both increased compared to last year, reflecting ongoing pressure on some homeowners as elevated mortgage rates, rising ownership costs, and affordability constraints persist. At the same time, foreclosure volumes remain well below historical norms, indicating that the housing market continues to show resilience despite these challenges.”

Florida, South Carolina, and Maryland post worst foreclosure rates in May

One in every 3,562 housing units nationwide had a foreclosure filing in May 2026. Florida recorded the worst foreclosure rate in the country, with one in every 2,110 housing units with a foreclosure filing.  South Carolina ranked second (one in every 2,287 housing units), followed by Maryland (one in every 2,369 housing units), Nevada (one in every 2,386 housing units), and Indiana (one in every 2,516 housing units).

Among metro areas with populations of 2 million or more, Cleveland, OH recorded the worst foreclosure rate in May 2026, with one filing for every 1,524 housing units.  Following Cleveland were Baltimore, MD (one in every 1,804); Tampa, FL (one in every 1,878); Riverside, CA (one in every 1,980 housing units); and Orlando, FL (one in every 2,034).

Texas, Florida, and California top nation in foreclosure starts

Lenders initiated the foreclosure process on 27,304 U.S. properties in May 2026, down 4 percent from the previous month but up 13 percent from a year ago.

Texas led the nation in foreclosure starts in May 2026 (3,590 foreclosure starts); followed by Florida (3,315 foreclosure starts); California (2,530 foreclosure starts); Georgia (1,161 foreclosure starts); and Illinois (1,150 foreclosure starts).

Contrary to the national trend, among metropolitan areas with a population of at least 200,000 with at least 20 foreclosure starts, the following saw the largest year-over-year declines in foreclosure starts in May 2026: Santa Rosa, CA (decrease from 93 foreclosure starts in May 2025 to 21 in May 2026); Honolulu, HI (decrease from 68 to 30 foreclosure starts); Seattle, WA (decrease from 196 to 99 foreclosure starts); Visalia, CA (decrease from 39 to 22 foreclosure starts); and Greeley, CO (decrease from 78 to 45 foreclosure starts).

Completed foreclosures remain elevated from a year ago

Lenders repossessed 4,092 U.S. properties through completed foreclosures (REOs) in May 2026, down 20 percent from the previous month but up 6 percent from a year ago.

States with the highest number of REOs in May 2026 were Texas (519 REOs); California (427 REOs); Florida (340 REOs); Illinois (223 REOs); and Michigan (222 REOs).

Those major metropolitan statistical areas (MSAs) with a population greater than 200,00 that saw the highest number of REOs in May 2026 included: Chicago, IL (204 REOs); Detroit, MI (124 REOs); Houston, TX (122 REOs); Dallas, TX (88 REOs); and New York, NY (84 REOs).

Key highlights from the May 2026 foreclosure data

ATTOM’s May 2026 U.S. Foreclosure Market Report found that 40,355 properties nationwide had a foreclosure filing, down 5 percent from April but up 14 percent from May 2025. The increase marks the continuation of a trend of rising foreclosure activity on an annual basis. Foreclosure starts climbed 13 percent year over year to 27,304, while completed foreclosures (REOs) rose 6 percent to 4,092. Despite these annual increases, overall foreclosure activity remains well below pre-pandemic levels.

 

For full report, please click the source link above.

 

Departing FHA Commissioner on His Achievements, and the Road Ahead

Posted on by Safeguard

Industry Update
June 5, 2026

Source: Scotsman Guide

Frank Cassidy announced Friday he has stepped down from his role as Assistant Secretary for Housing and Federal Housing Commissioner at the Department of Housing and Urban Development (HUD).

In an exclusive interview with Scotsman Guide, he said that while he’s no longer working in the administration, he plans “to use my voice as the highest-ranking Trump administration housing finance official now on the outside to advocate for the president’s housing agenda and help make housing more affordable for the millions of Americans that need it.”

He called serving “a great honor,” but noted his wife had been eight months pregnant when he got the call from the White House in February 2025, right after President Donald Trump was inaugurated. After starting work that April, Cassidy went through Senate confirmation process, where he was confirmed with bipartisan support.

Since starting the role, he had been commuting back and forth between Philadelphia and the capital, which kept him away from his family.

“It was a 24/7 job and I’m ready to spend more time with my family, young daughter, and get back to the private sector,” Cassidy said. “I felt like I put my time in. I got a lot done.”

On the 21st Century ROAD to Housing Act

Cassidy said he plans to fight for passage of the 21st Century ROAD to Housing Act. The legislation passed the House of Representatives on May 20 with strong bipartisan support, though it has not advanced through the Senate.

He predicts the bill “will be the biggest piece of housing legislation to ever pass. It will have far winding effects.”

Saying it “will affect our kids and our grandkids,” Cassidy praised President Donald Trump’s “bold leadership in calling the housing crisis what it is and enabling his appointees to deregulate and streamline.”

He predicts the act will be passed before midterm elections. “I really am hopeful, and I’m going to use my voice to encourage Congress, the Senate and the House to come together and pass that bill. It looks like they’re getting very close, but there’s a lot of great stuff in there.”

Manufactured housing

In addition to his responsibilities as FHA Commissioner, Cassidy oversaw HUD’s Office of Manufactured Housing, which oversees the design, building and installation of manufactured homes. He said the proposals in the ROAD to Housing legislation are “pretty interesting in that regard.”

Manufactured housing is only ever seen as being a one-story building, he said, citing the steel chassis on the first floor. “you’ve never really been able to build second, third, and fourth stories,” Cassidy said, observing the legislation gets rid of the first-floor steel chassis requirement.

“It kind of combines the innovation and the technology for modular housing with manufactured housing,” he said, adding that the regulations would give builders one set of standards across the country.

Cassidy cites the 50 different sets of regulations in 50 states as the issue. “The ability to have one set of standards across the housing product will make housing easier and cheaper to build.”

Lowering the multifamily mortgage insurance premium

One of his proudest achievements in his role came from the multifamily industry, where he helped recalibrate and lower the multifamily mortgage insurance premium to 25 basis points across the board. “That’s the statutory minimum. We did it for all multifamily,” he said, pointing out programs 221d4, 223f, 241.

“Prior to that, there were about a dozen different categories and to get the 25 basis points minimum, you had to get your building certified as a green energy building.” He said the premiums had “added significant cost and burdensome reporting requirements” to the projects.

“We said, every multifamily program is going to get that minimum 25 basis points. Doesn’t matter if it’s green or energy star certification because the reality is, all these buildings nowadays are already being built to that standard.”

Revision of the loss mitigation waterfall

On the single-family side, Cassidy highlighted the revision to the loss mitigation waterfall, as the agency turned the page on COVID.

“COVID had been over for years, however, FHA single family portfolio was dealing with the churn of borrowers continuously seeking loan modifications on their single-family mortgages. Two, three, four times,” Cassidy said. “And a lot of times it was because we didn’t have a policy in place to prevent that. We obviously want to help people when they fall behind on their mortgage. But by revising that, we gave clear guidance.”

By limiting it to two modifications, Cassidy said it will save the FHA insurance fund billions of dollars moving forward.

Cassidy also featured “the great work we did bringing competition to the credit scoring practices for single-family loans. Opening up competition will allow more Americans who have made rent payments on time to build a credit score and thus receive a FHA insured mortgage.”

Mortgage insurance for healthcare facilities

HUD’s 232 program, which provided mortgage insurance for healthcare facilities, is an area Cassidy says is often overlooked. At $40 billion, it’s only 2% compared to HUD’s $2 trillion portfolio.

“Having come from the industry and having originated those deals and met with those borrowers and walked these facilities, I understood the process,” Cassidy said.

In his first week in the role, he met with the top staff in the 232 program. “We said, how are we going to fix the issue of a large number of projects sitting in the queue, taking two, three, four months just to get picked up by a FHA reviewer?”

He worked with the team and developed the “232 Express Lane.” Prioritizing low risk deals with repeat HUD borrowers, if basic criteria were met, “it’s a slam dunk deal.”

With the new system, some cases that might have taken up to a year to get closed, were closing in as little as 70 days.

“It had never been done before. I mean, that’s private sector speed. It’s faster than Fannie Mae or Freddie Mac,” Cassidy said, expressing gratitude to the HUD team who worked on the 232 project. “To have those types of results coming out of a government agency, it was really historic and unheard of.”

For his next steps, Cassidy said he is looking forward to spending more time with family, and re-entering the private sector to the commercial mortgage banking agency financing world.

Scotsman Guide asked HUD what the agency’s plans are for its leadership going forward. A HUD spokesperson responded: “The Office of Housing and Federal Housing Administration remain focused on advancing homeownership and the availability of affordable housing nationwide. Ginnie Mae President Joseph Gormley will continue to lead the office in an acting capacity, with an experienced leadership team in place.”

 

For full report, please click the source link above.

 

Mortgage Delinquencies and Foreclosures are Rising, a Worrisome Sign

Posted on by Safeguard

Industry Update
June 9, 2026

Source: USA Today

From her office in Painesville, Ohio, just north of Cleveland, Patricia Kidd has a front-row seat for the ups and downs of the housing market.

The area was often considered the ground zero of the 2010s foreclosure crisis, but since then, soaring housing costs have had many residents struggling with the same affordability issues as the rest of the country.

Kidd is the executive director of the Fair Housing Resource Center, an agency certified by the Department of Housing and Urban Development to provide all kinds of services, from counseling that helps people achieve homeownership to complaints about civil rights abuses by landlords.

But when President Donald Trump took office in 2025 and his administration made wide-reaching cuts to federal funding, Kidd’s budget was slashed. She had to lay off four full-time and 12 part-time workers, and subsequent policy changes have meant that the remaining staff can’t offer many of the services Ohioans have counted on for years.

“Folks don’t have the financial resources, and they’re falling behind,” Kidd said. “Their budgets are tighter than they were, and there’s nowhere for them to call.”

A HUD spokesperson responded to a USA TODAY request for comment for this piece with an email saying, “HUD has focused on strengthening housing programs and supporting households most reliant on federal assistance. This has resulted in approximately 1.5 million Americans getting FHA-insured single-family mortgages, over 80% of whom are first time homebuyers.”

Despite the bullish sheen of the official economic data, many Americans are struggling. Delinquencies are rising on everything from student loans to credit cards. But there may be no metric more carefully watched than mortgage distress, perhaps because of the outsize role home loans played in bringing the financial system to its knees in 2008.

We are nowhere close to that, observers say. But the economy of 2026 has its own challenges that couldn’t have been imagined just a few years ago. And as observers like Kidd help average Americans navigate the housing market, it’s sometimes hard to remember all the careful post-2008 planning that went into anticipating the next downturn.

As of March, the share of mortgages nationwide in any stage of delinquency, meaning they are 30 or more days past due, was 3%, a 0.2 percentage point increase from March 2025, according to real estate analytics firm Cotality. The national foreclosure inventory rate, or the percent of homes in active foreclosure among all homes with a mortgage, rose to 0.4%, the highest level in six years.

That’s to be expected, said Selma Hepp, Cotality’s chief economist. Once the distress of the subprime bubble worked its way out of the system, delinquencies and foreclosures hovered near rock-bottom lows for several years. Lending tightened up drastically after the bubble burst, and later, policies enacted at the height of the COVID-19 pandemic gave homeowners some grace in paying their mortgage during a difficult time.

Now, delinquencies are still low relative to history, Hepp said. But the fact that they are concentrated among buyers who generally have to stretch to buy a house – those with loans backed by the Federal Housing Administration and the Veterans Administration, among others – suggests more distress could lie ahead.

Even more worrisome is that it’s recent borrowers – those who bought from 2022 on – who are having the most trouble. That suggests that the combination of high home prices and elevated interest rates may be proving to be too much for many recent entrants into the market.

Cuts to agencies like Kidd’s are hitting at precisely the wrong time, she said in an interview. As the overall cost of living surges, homeowners in her area are increasingly having trouble paying the mortgage.

The cuts to both funding and programming mean she and her staff have to turn away people seeking help. Kidd says that “breaks my heart.”

Are rising foreclosures a sign of worse things to come?

“This is sort of a canary in a coal mine,” said Sharon Cornelissen, director of housing for the Consumer Federation of America, a national nonprofit advocacy group. “We’ve come from historically low levels of distress, and recently we had historically low interest rates, which gave a boost to affordability.”

But as the metrics by which lenders evaluate borrowers have relaxed slightly, conditions have eroded. “People are really at the edge of even affording a home,” Cornelissen said. It feels uncomfortably like the key lesson of the subprime bubble – that lenders must ensure borrowers have an “ability to repay,” may have been sidelined in the well-intentioned push to get people into homeownership, she said.

It’s almost always the case, even post-financial crisis, that the overwhelming majority of borrowers become distressed because something has happened to tip them into trouble: job loss, a natural disaster, a death in the family.

From what can be seen in Cotality’s data, Hepp suspects it’s largely a similar situation now. For example, the destructive 2024 hurricanes may be leading to defaults in South Carolina and Georgia, she says, while surging insurance costs may be pressuring borrowers in California and Florida.

Despite those exogenous factors, however, the distress among borrowers who bought homes relatively recently and could afford only a handful of monthly payments – or perhaps none at all – hints at something more troubling, Hepp says. Many of those owners may have bought with the assumption that they’d be able to refinance to a lower rate quickly, only to get stuck when that didn’t happen.

Housing crisis guardrails have eroded

Whatever the reasons for defaults, housing observers are most concerned that the guardrails put in place after the housing crisis are no longer there to help. It’s not just the housing counseling programs that have been gutted: The Consumer Financial Protection Bureau has axed staff, deleted online resources and dropped regulation enforcement actions.

“In 2026, this is exactly the wrong time to make it harder for homeowners in distress to get help,” Kidd said. “Access should be easier, not harder. When someone is struggling, the first question should be, ‘How can we help?’ not, ‘Which funding category do you fit into?’”

 

For full report, please click the source link above.

 

Unemployment and Foreclosure Rates Drive Housing Market Risk

Posted on by Safeguard

Industry Update
June 4, 2026

Source: ATTOM

ATTOM, the leading provider of property data, AI-powered intelligence, and real estate analytics solutions, today released its latest Housing Risk Report spotlighting county-level housing markets around the United States that were more or less vulnerable to declines, based on home affordability, equity and other measures in the first quarter of 2026.

Of the 50 riskiest counties, 12 were in Florida, nine in California, and five each in Illinois and New Jersey, according to ATTOM’s analysis.

The overall riskiest markets in ATTOM’s analysis were Charlotte County, FL; Butte County, CA; Charles County, MD; Shasta County, CA; and Cumberland County, NJ.

While affordability remains a nationwide challenge, these riskiest markets were characterized by particularly high rates of unemployment and some of the worst foreclosure rates compared to the other counties included in the analysis.

“While home prices have eased slightly from last summer’s record highs, affordability remains a challenge in much of the country,” said Rob Barber, CEO of ATTOM. “The greatest risk remains in counties where unemployment rates are above 5 percent and homes are being foreclosed at greater rates.”

Counties were considered more or less at risk based on the percentage of homes facing possible foreclosure, the portion with seriously underwater mortgages, the percentage of average local wages required to pay for major home ownership expenses on median-priced single-family homes, and local unemployment rates.

The conclusions were drawn from an analysis of the most recent home affordability, equity and foreclosure reports prepared by ATTOM. Unemployment rates came from federal government data. Rankings were based on a combination of those four categories in 580 counties around the United States, with sufficient data to analyze in the first quarter of 2026. Counties were ranked in each category, from lowest to highest, with the overall conclusion based on a combination of the four ranks. See below for the full methodology.

Tennessee boasts some of the safest markets

Among the 50 least risky counties in ATTOM’s analysis, nine were in Tennessee, five each were in Virginia and Wisconsin, and four were in Michigan.

The least risky counties were Chittenden County, VT; Rutherford County, TN; Arlington County, VA; Tippecanoe County, Indiana, and Cumberland County, ME.

These counties were not notably more affordable than others, but they benefited from some of the lowest unemployment and best foreclosure rates in the country, along with low shares of underwater mortgages.

California counties top lists of least affordable, highest unemployment

In the first quarter of 2026, the national median home sales price was $360,000, which would have consumed 30.3 percent of the typical American worker’s annual wages for major monthly purchase expenses.

The least affordable counties in ATTOM’s analysis were Kings County, NY (purchase expenses for a median priced home would consumed 108.6 percent of the typical resident’s wages); Santa Cruz County, CA (97.1 percent); Marin County, CA (91.1 percent); San Luis Obispo County, CA (89.7 percent); and Orange County, CA (88.1 percent).

Nationwide, 3.2 percent of homes were considered seriously underwater, meaning the combined estimated balances of loans secured by the properties were at least 25 percent higher than the properties’ estimated market values.

The counties with the highest rates of seriously underwater homes were all in Louisiana: Ouachita Parish (17.4 percent); Calcasieu Parish (17.1 percent), Tangipahoa Parish (15 percent), Ascension Parish (14.5 percent), and Rapides Parish (13.2 percent).

One out of every 1,211 homes nationwide were in the process of foreclosure in the first quarter of 2026.

The counties with the highest rates of foreclosure in ATTOM’s analysis were Liberty County, TX (one in every 55 homes in the process of foreclosure); Baltimore City, MD (one in every 294 homes); Dorchester County, SC (one in every 352 homes); Kaufman County, TX (one in every 361 homes); and Pueblo County, CO (one in every 368 homes).

The national unemployment rate was 4.4 percent in February, according to the U.S. Bureau of Labor Statistics.

Among the 580 counties in ATTOM’s analysis, the highest unemployment rates were in Imperial County, CA (17.6 percent); Yuma County, AZ (11.7 percent); Tulare County, CA (11.5 percent); Merced County, CA (10.9 percent); and Monterey County, CA (10.8 percent).

Conclusion

ATTOM’s first quarter 2026 Housing Impact Report shows that unemployment and foreclosure rates drove housing market risk, particularly in select Florida and California counties while affordability remained a lingering challenge nationwide.

 

For full report, please click the source link above.

 

VA Finalizes Partial Claim Program to Help Veterans Avoid Foreclosure

Posted on by Safeguard

Industry Update
June 2, 2026

Source: National Mortgage Professional

Veteran homeowners facing financial hardship will soon have access to a new foreclosure-prevention tool designed to help them stay in their homes without increasing their monthly mortgage payments.

The Department of Veterans Affairs (VA) on Monday finalized updates to its loss mitigation waterfall and partial claim program, implementing provisions of the bipartisan 2025 VA Home Loan Program Reform Act. The changes establish a new loss mitigation option that allows eligible delinquent borrowers to bring their VA-backed mortgages current while avoiding the payment increases that can accompany some loan modifications.

The move gives VA borrowers access to a foreclosure-prevention tool already available through other government-backed mortgage programs and comes as the industry continues to seek long-term solutions for veterans struggling to recover from financial setbacks.

For originators, the changes could provide additional reassurance to veteran borrowers concerned about what happens if they experience temporary hardship after purchasing a home.

Under the program, mortgage servicers can advance funds to bring a delinquent VA-backed mortgage current. The VA then reimburses the servicer for the advance, while the veteran repays the amount owed when the loan matures, is paid off, or otherwise terminates. The structure enables borrowers to resolve delinquencies without immediately increasing their monthly housing payment.

One notable change from the original proposal was the removal of language that would have allowed certain loan modifications associated with a partial claim to increase a borrower’s monthly mortgage payment by as much as 15%.

According to the VA, the final policy was updated based on feedback from mortgage industry participants, veterans organizations, and veterans themselves.

The Mortgage Bankers Association (MBA) welcomed the final rule and credited the VA for incorporating stakeholder feedback during the policy development process.

“MBA applauds the VA’s release of its partial claim program and updated loss mitigation waterfall, following a collaborative stakeholder feedback process that helped strengthen the proposed policies,” said MBA president and CEO Bob Broeksmit.

“We are pleased to see that veteran homeowners will have access to a key loss mitigation option available to other borrowers with government-backed mortgages, that can allow veterans to remain in their homes without increasing their monthly payments,” Broeksmit said.

The VA said mortgage servicers will be able to begin submitting trial payment plans for loan modifications and partial claims starting June 15.

Servicers will have until Nov. 28 to update their systems and processes to accommodate the new program.

Broeksmit said the implementation period recognizes the operational work required to activate the new option.

“After actively engaging in the legislative and policy efforts behind this important change, we will continue working with the VA and our servicer members to support implementation,” he said.

“Activating this new loss mitigation option will require servicers to update systems, modify processes, and train staff, and we appreciate the VA’s recognition of these implementation challenges by providing a 180-day timeframe. Our members are committed to implementing these changes as quickly as possible to ensure veteran homeowners can benefit from this important new tool.”

What It Means

The new partial claim program gives VA borrowers a foreclosure-prevention option that can help them recover from temporary financial hardship without taking on higher monthly payments.

For LOs who specialize in VA lending, the policy provides another example of the safeguards available within the VA home loan program and may help address concerns from prospective borrowers about what options exist if they encounter financial difficulties after closing.

The move gives VA borrowers access to a foreclosure-prevention option similar to those available through other government-backed mortgage programs.

 

For full report, please click the source link above.

 

Tulsa Designates June as Housing Month Amid Push to Expand Affordable Housing

Posted on by Safeguard

One Community Update
June 5, 2026

Source: www.newson6.com

Mayor Monroe Nichols has officially designated June 2026 as Housing Month in Tulsa, underscoring the city’s ongoing efforts to address housing shortages, improve affordability and revitalize neighborhoods across the city.

The proclamation comes as city officials continue implementing a comprehensive housing strategy aimed at creating 6,000 affordable housing units and reducing the number of vacant, abandoned and dilapidated properties by 60%.

“Housing is foundational to everything we’re trying to accomplish as a city,” Nichols said in a statement. “Whether we’re working to reduce homelessness, create safer neighborhoods, improve outcomes for children and families, expand economic opportunity, or strengthen partnerships throughout our community, housing plays a critical role.”

Housing Month also marks an opportunity for city leaders to reflect on progress made since Nichols issued a housing executive order in 2025. Since then, the city has launched several initiatives designed to accelerate housing development and improve access to affordable homes.

Among those efforts is the creation of Tulsa’s first Housing Acceleration Team, which helps move large-scale housing projects through the permitting process more quickly. The city also launched the Community Builder Pilot Program, designed to help developers rehabilitate vacant and abandoned properties and return them to productive use.

Additional initiatives include a public Housing Unit Tracker that provides real-time updates on housing development, expanded permitting assistance through satellite permit services, and ongoing community engagement efforts focused on housing and neighborhood planning.

City officials also recently launched a Faith-Based Housing Initiative aimed at helping congregations and religious organizations explore housing opportunities on underutilized land.

Combined, city leaders say the programs are intended to reduce barriers to development, increase housing production and improve transparency surrounding Tulsa’s housing goals.

Housing advocates and city officials are also preparing for the next phase of investments funded through Improve Our Tulsa 3, a voter-approved package that included the largest public housing investment in the city’s history.

In 2025, the Tulsa Housing Impact Fund was selected to administer $47 million of the $75 million allocated for housing initiatives through Improve Our Tulsa 3. City officials said announcements regarding the first projects receiving funding are expected in the coming weeks and months.

“For the last several years, we’ve been building the foundation necessary to tackle one of Tulsa’s most significant challenges,” said Gene Bulmash, the city’s senior adviser on housing. “We’ve worked to align our policies, processes, partnerships and investments around housing because we know there isn’t a single solution to this issue.”

Several additional housing initiatives are expected to be introduced this summer. Among them is the launch of the T-Town Home Catalog, a collection of pre-approved housing plans designed to help developers move projects more quickly into construction.

City leaders are also preparing to discuss a new Vacancy Improvement Program that would utilize a recently enacted state law allowing municipalities to foreclose on vacant, abandoned and dilapidated properties and return them to productive use.

Additional proposals under consideration include ordinances that would waive certain city code enforcement liens on affordable housing projects and reduce building permit fees for qualifying developments.

According to the city’s Housing Unit Tracker, more than 1,800 affordable housing units have been completed or permitted since December 2024, representing more than 30% of the city’s goal of creating 6,000 affordable units.

Housing will also be a central topic during Mayor Nichols’ upcoming community conversation events scheduled for June 9 and June 23. Residents will have opportunities to discuss housing needs, learn about current initiatives and provide feedback on future housing strategies.

The city’s efforts are guided in part by a 2023 housing assessment that found Tulsa would need nearly 13,000 additional housing units over the next decade to meet projected demand.

Officials say Housing Month is intended to raise awareness about those challenges while highlighting ongoing work to expand housing options and improve neighborhood stability throughout Tulsa.

 

For full report, please click the source link above.

Turn the Key Initiative Brings Affordable Homeownership to North Philadelphia

Posted on by Safeguard

One Community Update
June 1, 2026

Source: The Philadelphia Tribune

Mayor Cherelle L. Parker on Monday highlighted the expansion of the city’s Turn the Key initiative into the Nicetown-Tioga area, touting the public-private program as a key tool to create affordable homeownership opportunities for first-time buyers.

Speaking at a new development at 1600 W. Venango St. in the city’s 8th Councilmanic District, Parker joined City Council members and housing officials to mark the program’s first project in the district. The initiative is part of the mayor’s broader H.O.M.E. plan to address Philadelphia’s housing shortage and affordability challenges.

Turn the Key, a partnership between the city and private developers, aims to reduce the cost of newly constructed homes by leveraging publicly owned land and providing financial assistance to buyers. The Philadelphia Land Bank contributes vacant land for development, while the program offers qualifying first-time homebuyers up to $85,000 in support through mortgage buydowns and down payment or settlement assistance.

“Turn the Key is helping families who might otherwise be priced out of the market become homeowners,” Philadelphia Land Bank Executive Director Angel Rodriguez said in a statement.

The newly constructed homes feature three bedrooms and two bathrooms, with design elements including mansard roofs and enhanced insulation aimed at improving energy efficiency. Officials said the homes are designed to balance quality construction with long-term affordability.

City leaders and developers said the program is already showing results in narrowing the gap between rising housing costs and household incomes. The average monthly payment for a Turn the Key home is about $1,400, significantly lower than the estimated $1,800 average rent for a two-bedroom apartment in Philadelphia.

The typical participant in the program earns about $45,000 annually, or roughly 57% of the area median income, according to city data. More than half of the homes sold or under contract through Turn the Key have gone to households earning 60% of the area median income or less.

Homes developed through the program are sold at a reduced effective cost after subsidies. While the average price of a Philadelphia home exceeds $300,000, Turn the Key homes have an average price of about $280,000 before assistance and roughly $183,499 after grants and buydowns are applied.

In addition to financial support, buyers receive housing counseling to help prepare them for homeownership. On average, participants complete about eight hours of counseling before purchasing a home.

Councilmember Cindy Bass, whose district includes the new development, called the project a significant step toward expanding homeownership in historically underserved communities.

“This is about creating pathways for residents to build generational wealth and stability,” she said in a statement.

 

For full report, please click the source link above.

Vacant Homes Remain in Detroit Despite Land Bank Authority Progress

Posted on by Safeguard

One Community Update
June 4, 2026

Source: CBS News

The Detroit Land Bank Authority says the numbers show just how much the city has changed over the last decade.

The agency says it has sold more than 23,000 structures, more than 32,000 vacant lots, and helped more than 6,000 Detroiters become homeowners.

Land Bank CEO Tammy Daniels says the difference is reflected in the agency’s inventory.

“We have either demolished those that could not be saved, or we have sold almost more than 90% of those that could. Our current salvageable inventory sits at around 300 properties,” said Daniels.

Some city leaders question whether residents are seeing the level of progress they were promised.

Detroit City Council member Mary Waters says development is happening, but argues many Detroiters still see vacant homes and lots in their neighborhoods.

“No, no, certainly not. I think we’re slowly building towards that, but again, I have to go back to the problem. Who’s going to occupy those properties?” said Waters.

Waters says she would also like to see more opportunities for residents to acquire and rehabilitate properties near their homes.

She also questions whether vacant properties are returning to use quickly enough.

“That is a good question, because sometimes I drive around in the city, and I see this vacant property, so the Land Bank is not moving as fast as they should,” said Waters.

Daniels acknowledges there is still work to do, but says Detroiters can see the results of the land bank’s work in neighborhoods across the city.

“When you drive down the streets, and you see that more than 5,000 blocks have seen improvement, when you drive, and you find out that more than 6,000 Detroiters have been homeowners, you know that the programs are working,” said Daniels.

The Land Bank says its next challenge is finding productive uses for the thousands of vacant lots that remain in its inventory.

 

For full report, please click the source link above.