FHFA Announces Validation of FICO 10T and VantageScore 4.0 for Use by Fannie Mae and Freddie Mac

Industry Update
October 24, 2022

Source: FHFA

The Federal Housing Finance Agency (FHFA) announced the validation and approval of both the FICO 10T credit score model and the VantageScore 4.0 credit score model for use by Fannie Mae and Freddie Mac (the Enterprises).

“Today’s decision will benefit borrowers and the Enterprises, along with maintaining safety and soundness,” said FHFA Director Sandra L. Thompson. “While implementing the newer credit score models is a significant change that will take time and require close coordination across the industry, the models bring improved accuracy and a more inclusive approach to evaluating borrowers.”

FHFA expects that implementation of FICO 10T and VantageScore 4.0 will be a multiyear effort. Once implemented, lenders will be required to deliver both FICO 10T and VantageScore 4.0 credit scores with each loan sold to the Enterprises. FHFA and the Enterprises will conduct outreach to stakeholders to ensure a smooth transition to the newer credit score models.

 

For full report, please click the source link above.

 

 

 

 

 

 

 

 

 

 

 

Newark Targets Derelict Property Owners with New Ordinance

Industry Update
October 21, 2022

Source:  patch.com

“Blighted” properties can drag a neighborhood down in several ways. That’s why a new local law in Newark aims to tackle the problem by penalizing unreachable corporations and absentee lot owners, city officials say.

Earlier this week, the Newark Municipal Council approved an ordinance that will jack up annual registration fees for residential properties if they remain unrenewed. The result? Property owners who abandon their lots will be hit where it hurts – their wallets, according to a statement from the office of Mayor Ras Baraka.

For full report, please click the source link above.

 

 

 

 

 

 

 

 

 

 

 

Freddie Mac Announces Underwriting Innovation to Help Lenders Qualify More Borrowers for a Mortgage

Industry Update
October 17, 2022

Source:  Freddie Mac

Freddie Mac will increase homeownership opportunities by including a review of a borrower’s bank account data to identify a history of positive monthly cash flow activity as part of its technology’s loan purchase eligibility assessments, the company announced. This industry-first innovation will be available to mortgage lenders nationwide through Freddie Mac’s automated underwriting system, Loan Product Advisor® (LPASM), beginning November 6, 2022.

“With the addition of positive monthly cash flow data, our underwriting system can help with more accurately predicting a borrower’s ability to pay their mortgage because it uses a comprehensive view of how personal finances are managed over time,” said Terri Merlino, Freddie Mac Single-Family senior vice president and chief credit officer. “Our latest innovation levels the playing field and helps make homes more accessible to borrowers whose lenders might not have qualified them with traditional methods of underwriting. This should particularly help first-time homebuyers and underserved communities.”

For full report, please click the source link above.

 

 

 

 

 

 

 

 

 

 

 

Lawmaker Says it’s Time for a Land Bank in St. Louis County

Industry Update
October 17, 2022

Source:  St. Louis Post-Dispatch

By the time a California woman claimed a stake in the vacant house on Ventura Drive, Amy Michael had already spent around $50,000 repairing the warped floors, broken windows and copper wiring destroyed by vandals and years of neglect.

Michael has worked with family and friends to repair and flip houses since about 2015. But this was the first time she had bought a fixer-upper from St. Louis County’s inventory of thousands of tax delinquent properties.

“You don’t know until you’ve already purchased it whether you’re going to have trouble or not,” Michael said.

And she doesn’t mean the trash she found buried in the backyard or the mold she discovered inside. Rather, it’s the title issues that keep banks from lending against the property and force the limited pool of gutsy investors, like Michael, to spend thousands of dollars on lawyers.

“If you don’t have a clear title, that takes away many of the benefits of owning a home,” said Rep. Kevin Windham, D-Hillsdale. “Some people start work and then find out they don’t actually own the home.”

Windham hopes legislation he plans to introduce next session will help St. Louis County better absorb and repurpose a growing number of abandoned properties that are weighing down neighborhoods. His bill would allow the county to create a land bank similar to the city of St. Louis’ Land Reutilization Authority, which was authorized by state statute in 1971 to manage abandoned properties left in the wake of an exodus to the suburbs.

If Windham’s bill passes and the county approves its own land bank ordinance, thousands of abandoned properties could have a new path to clean titles and a fresh start — or at least a landlord with the task of maintaining them.

For full report, please click the source link above.

 

 

 

 

 

 

 

 

 

 

 

FEMA Fire Management Assistance Declaration – Washington Nakia Creek Fire

FEMA Alert
October 17, 2022

FEMA has issued a Fire Management Assistance Declaration for the state of Washington to supplement state, tribal and local recovery efforts in the areas affected by the Nakia Creek Fire on October 9, 2022 and continuing.  The following counties have been approved for assistance:

Public Assistance:

  • Clark
  • Skamania

 

Washington Nakia Creek Fire (FM-5456-WA)

Zip Codes of Affected Areas

 

Additional Resources

FEMA’s web site

FEMA’s Disaster Declaration Process

Safeguard Properties Industry Alerts

HUD Moratorium on Foreclosure

VA’s Policy Regarding Natural Disasters

Freddie Mac Disaster Relief Policies

Fannie Mae’s Natural Disaster Relief Policies

Mortgage Application Volume Hits 25-Year Low

Industry Update
October 19, 2022

Source: Mortgage Daily News

Mortgage application activity fell again during the week ended October 14 as mortgage interest rates hit their highest level in 20 years. The Market Bankers Association (MBA) said its Market Composite Index, a measure of mortgage loan application volume, decreased 4.5 percent on a seasonally adjusted basis from one week earlier and was down 4 percent on an unadjusted basis.

The Refinance Index dropped 7 percent week-over-week and was 86 percent lower than the same week in 2021. The refinance share of mortgage activity decreased to 28.3 percent of total applications from 29.0 percent during the week ended October 7.

 

For full report, please click the source link above.

 

 

 

 

 

 

 

 

 

 

 

Share of Mortgage Loans in Forbearance Decreases to .69% in September

Industry Update
October 17, 2022

Source: Mortgage Bankers Association

The Mortgage Bankers Association’s (MBA) monthly Loan Monitoring Survey revealed that the total number of loans now in forbearance decreased by 3 basis points from 0.72% of servicers’ portfolio volume in the prior month to 0.69% as of September 30, 2022. According to MBA’s estimate, 345,000 homeowners are in forbearance plans.

The share of Fannie Mae and Freddie Mac loans in forbearance decreased 2 basis points to 0.30%. Ginnie Mae loans in forbearance increased 1 basis point to 1.33%, and the forbearance share for portfolio loans and private-label securities (PLS) declined 12 basis points to 1.14%.

 

For full report, please click the source link above.

 

 

 

 

 

 

 

 

 

 

 

FHFA Releases 2nd Quarter 2022 Foreclosure Prevention and Refinance Report

Industry Update
September 22, 2022

Source: Federal Housing Finance Agency

The Federal Housing Finance Agency (FHFA) released its second quarter 2022 Foreclosure Prevention and Refinance Report​. The report shows that Fannie Mae and Freddie Mac (the Enterprises) completed 96,945 foreclosure prevention actions during the quarter, raising the total number of homeowners who have been helped to 6,591,002 since the start of conservatorships in September 2008.

The report also shows that 72 percent of loan modifications completed in the second quarter reduced borrowers’ monthly payments by more than 20 percent. The number of refinances decreased significantly amid rising mortgage rates from 899,518 in the first quarter to 444,852 in the second quarter.

The Enterprises’ serious delinquency rate declined from 0.97 percent to 0.79 percent at the end of the second quarter. This compares with 4.64 percent for Federal Housing Administration (FHA) loans, 2.83 percent for Veterans Affairs (VA) loans, and 2.12 percent for all loans (industry average).

 

For full report, please click the source link above.

 

 

 

 

 

 

 

 

 

 

 

FEMA Major Disaster Declaration – Illinois Severe Storm and Flooding

FEMA Alert
October 14, 2022

FEMA has issued a Major Disaster Declaration for the state of Illinois to supplement state, tribal and local response efforts in the areas affected by a severe storm and flooding from July 25-28, 2022.  The following areas has been approved for assistance:

Individual Assistance:

  • Saint Clair

 

Illinois Severe Storm and Flooding (DR-4676-IL)

President Joseph R. Biden, Jr. Approves Major Disaster Declaration for Illinois

Map of Affected Areas

List of Affected Zip Codes

 

Additional Resources

FEMA’s web site

FEMA’s Disaster Declaration Process

Safeguard Properties Industry Alerts

HUD Moratorium on Foreclosure

VA’s Policy Regarding Natural Disasters

Freddie Mac Disaster Relief Policies

Fannie Mae’s Natural Disaster Relief Policies

HUD Marks 10th Anniversary of the Office of Housing Counseling

Industry Update
October 3, 2022

Source:  U.S. Department of Housing and Urban Development

The U.S. Department of Housing and Urban Development’s (HUD) Office of Housing Counseling marked its tenth anniversary since being created as a distinct office reporting to HUD’s Assistant Secretary for Housing. Throughout October, the Office will celebrate the many contributions of HUD’s housing counseling program in helping individuals and families obtain and maintain safe, sustainable, and affordable homeownership and rental housing.

“Whether it was helping homeowners through the foreclosure challenges of the 2012 housing crisis, responding to the housing needs of victims of disasters, or the continuing housing relief and recovery resulting from the COVID-19 pandemic, housing counselors have been there over the last decade to support families in making critical housing choices and equipping themselves for the future,” said Deputy Assistant Secretary for Housing Counseling David Berenbaum. “This month, we recognize not only our role in helping people stay in their homes during times of crisis, but also in supporting a network of HUD Certified Housing Counselors who serve some 3,000 clients a day.”

For full report, please click the source link above.

 

 

 

 

 

 

 

 

 

 

 

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CEO

Alan Jaffa

Alan Jaffa is the Chief Executive Officer for Safeguard Properties, steering the company as the mortgage field services industry leader. He also serves on the board of advisors for SCG Partners, a middle-market private equity fund focused on diversifying and expanding Safeguard Properties’ business model into complimentary markets.

Alan joined Safeguard in 1995, learning the business from the ground up. He was promoted to Chief Operating Officer in 2002, and was named CEO in May 2010. His hands-on experience has given him unique insights as a leader to innovate, improve and strengthen Safeguard’s processes to assure that the company adheres to the highest standards of quality and customer service.

Under Alan’s leadership, Safeguard has grown significantly with strategies that have included new and expanded services, technology investments that deliver higher quality and greater efficiency to clients, and strategic acquisitions. He takes a team approach to process improvement, involving staff at all levels of the organization to address issues, brainstorm solutions, and identify new and better ways to serve clients.

In 2008, Alan was recognized by Crain’s Cleveland Business in its annual “40-Under-40” profile of young leaders. He also was named a NEO Ernst & Young Entrepreneur Of The Year® Award finalist in 2013.

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Esq., General Counsel and EVP

Linda Erkkila

Linda Erkkila is the General Counsel and Executive Vice President for Safeguard Properties, with oversight of legal, human resources, training, and compliance. Linda’s broad scope of oversight covers regulatory issues that impact Safeguard’s operations, risk mitigation, strategic planning, human resources and training initiatives, compliance, insurance, litigation and claims management, and counsel related to mergers, acquisition and joint ventures.

Linda assures that Safeguard’s strategic initiatives align with its resources, leverage opportunities across the company, and contemplate compliance mandates. She has practiced law for 25 years and her experience, both as outside and in-house counsel, covers a wide range of corporate matters, including regulatory disclosure, corporate governance compliance, risk assessment, compensation and benefits, litigation management, and mergers and acquisitions.

Linda earned her JD at Cleveland-Marshall College of Law. She holds a degree in economics from Miami University and an MBA. Linda was previously named as both a “Woman of Influence” by HousingWire and as a “Leading Lady” by MReport.

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COO

Michael Greenbaum

Michael Greenbaum is the Chief Operating Officer of Safeguard Properties, where he has played a pivotal role since joining the company in July 2010. Initially brought on as Vice President of REO, Mike’s exceptional leadership and strategic vision quickly propelled him to Vice President of Operations in 2013, and ultimately to COO in 2015. Over his 14-year tenure at Safeguard, Mike has been instrumental in driving change and fostering innovation within the Property Preservation sector, consistently delivering excellence and becoming a trusted partner to clients and investors.

A distinguished graduate of the United States Military Academy at West Point, Mike earned a degree in Quantitative Economics. Following his graduation, he served in the U.S. Army’s Ordnance Branch, where he specialized in supply chain management. Before his tenure at Safeguard, Mike honed his expertise by managing global supply chains for 13 years, leveraging his military and civilian experience to lead with precision and efficacy.

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CFO

Joe Iafigliola

Joe Iafigliola is the Chief Financial Officer for Safeguard Properties. Joe is responsible for the Control, Quality Assurance, Business Development, Marketing, Accounting, and Information Security departments. At the core of his responsibilities is the drive to ensure that Safeguard’s focus remains rooted in Customer Service = Resolution. Through his executive leadership role, he actively supports SGPNOW.com, an on-demand service geared towards real estate and property management professionals as well as individual home owners in need of inspection and property preservation services. Joe is also an integral force behind Compliance Connections, a branch of Safeguard Properties that allows code enforcement professionals to report violations at properties that can then be addressed by the Safeguard vendor network. Compliance Connections also researches and shares vacant property ordinance information with Safeguard clients.

Joe has an MBA from The Weatherhead School of Management at Case Western Reserve University, is a Certified Management Accountant (CMA), and holds a bachelor’s degree from The Ohio State University’s Honors Accounting program.

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Business Development

Carrie Tackett

Business Development Safeguard Properties