FHA Annual Report Showcases Continued Leadership in Affordable Home Financing

Industry Update
November 15, 2022

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

The Federal Housing Administration (FHA) released its Annual Report to Congress on the financial status of its Mutual Mortgage Insurance Fund (MMI Fund), which is used to operate FHA Single Family mortgage insurance programs, authorized under Title II of the National Housing Act. The report highlights FHA’s significant role in supporting affordable mortgage financing for first-time homebuyers and borrowers of color while continuing to assist homeowners affected by the COVID-19 pandemic to keep their homes. It also underscores FHA’s work to support increased housing supply and affordability while reducing barriers to fair and equitable homeownership.

FHA’s achievements in fiscal year 2022 are supported by a strong MMI Fund, as demonstrated by the Fund’s capital ratio of 11.11 percent as of September 30, 2022.

“I’m so proud of FHA’s work to make homeownership possible for our nation’s underserved households and communities,” said Federal Housing Commissioner Julia R. Gordon. “Behind the bottom-line numbers are some two million individuals and families who were able to achieve homeownership or stay in their homes through hard times thanks to assistance from FHA.”

As the report notes, FHA helped more than one million homeowners who were behind on their mortgage payments to obtain an FHA COVID-19 Forbearance and/or an FHA COVID-19 Recovery option to stay in their homes despite the dislocations caused by the pandemic. In FY 2022, FHA reduced the number of serious delinquencies – mortgages 90 or more days past due – by almost half, ending with a serious delinquency rate of 4.77 percent on September 30, 2022. This number had reached more than 11 percent during the height of the COVID-19 crisis.

For full report, please click the source link above.

 

 

 

 

 

 

 

 

 

 

 

Fannie Mae Launches New Single-Family Social Disclosures

Industry Update
November 16, 2022

Source: Fannie Mae

Fannie Mae today launched new social disclosures, the Social Criteria Share (SCS) and the Social Density Score (SDS), for its Single-Family mortgage-backed securities (MBS). The new disclosures are designed to respond to investor feedback and aim to provide single-family MBS investors with insights into socially oriented lending activities while helping to preserve the confidentiality of mortgage consumers’ personal information.

With today’s publication, Fannie Mae is providing the market with the SCS and the SDS, assigned at issuance, for active and inactive MBS pools issued between January 2010 and October 2022. Fannie Mae intends to begin publishing these attributes for new Single-Family MBS issuances on December 2, 2022.

To further assist market participants in their historical analysis, Fannie Mae is also providing a chartbook containing common visualizations of prepayment performance.

For full report, please click the source link above.

 

 

 

 

 

 

 

 

 

 

 

Mortgage Delinquencies Decrease to New Survey Low in Third Quarter

Industry Update
November 10, 2022

Source: MBA

The delinquency rate for mortgage loans on one-to-four-unit residential properties decreased to a seasonally adjusted rate of 3.45 percent of all loans outstanding at the end of the third quarter of 2022, according to the Mortgage Bankers Association’s (MBA) National Delinquency Survey.

For the purposes of the survey, MBA asks servicers to report loans in forbearance as delinquent if the payment was not made based on the original terms of the mortgage. The delinquency rate was down 19 basis points from the second quarter of 2022 and down 143 basis points from one year ago.

“For the second quarter in a row, the mortgage delinquency rate fell to its lowest level since MBA’s survey began in 1979 – declining to 3.45 percent. Foreclosure starts and loans in the process of foreclosure also dropped in the third quarter to levels further below their historical averages,” said Marina Walsh, CMB, MBA’s Vice President of Industry Analysis. “The relatively small number of seriously delinquent homeowners are working with their mortgage servicers to find foreclosure alternatives, including loan workouts that allow for home retention.”

For full report, please click the source link above.

 

 

 

 

 

 

 

 

 

 

 

Industry Veteran Ravi Shankar Appointed Head of Freddie Mac’s Single-Family Portfolio & Servicing Division

Industry Update
November 7, 2022

Source: Freddie Mac

Mortgage and Financial services veteran Ravi Shankar has joined the company as senior vice president and head of Single-Family Portfolio and Servicing, Freddie Mac announced today. Mr. Shankar brings over three decades of experience managing multibillion-dollar finance, capital markets, portfolios, and mortgage trading operations. A former Freddie Mac executive, Mr. Shankar is a member of the company’s senior operating committee, reporting to President Mike Hutchins.

“Ravi Shankar brings substantial experience to the company as a respected financial services leader, portfolio manager and Freddie Mac alum. I am pleased to welcome him back to the company,” said Mike Hutchins, President of Freddie Mac. “I look forward to working with this talented executive as we continue to fulfill Freddie Mac’s important mission of making home possible.”

As Head of the Single-Family Portfolio & Servicing Division, Mr. Shankar will have broad responsibility over portfolio management, servicing and the operations and technology that support these activities. As a head of the division, he will play a significant role in supporting Freddie Mac’s mission of providing affordable and equitable housing.

For full report, please click the source link above.

 

 

 

 

 

 

 

 

 

 

 

October 2022 U.S. Foreclosure Activity Increases 57% from October 2021

Industry Update
November 9, 2022

Source: www.prnewswire.com

ATTOM, a leading curator of real estate data nationwide for land and property data, today released its October 2022 U.S. Foreclosure Market Report, which shows there were a total of 32,376 U.S. properties with foreclosure filings — default notices, scheduled auctions or bank repossessions – up 57 percent from a year ago, but only up 2 percent from the prior month.

Lenders repossessed 4,156 U.S. properties through completed foreclosures (REOs) in October 2022, up 18 percent from last month and up 37 percent from last year.

“Repossessions in October were just under 31 percent of where they were in October of 2019,” Sharga added. “This suggests that borrowers in foreclosure have been able to sell their homes prior to the foreclosure auction, and that a higher percentage of properties at the auctions are being sold to third-party buyers. A new flood of REO homes seems increasingly unlikely to happen anytime soon.”

States that had the greatest number of REOs in October 2022, included: Illinois (1,100 REOs); New York (273 REOs); Pennsylvania (251 REOs); Michigan (239 REOs); and California (194 REOs).

Those major metropolitan statistical areas (MSAs) with a population greater than 1 million that saw the greatest number of REOs in October 2022 included: St. Louis, MO (841 REOs); Chicago, IL (220 REOs); New York, NY (147 REOs); Philadelphia, PA (124 REOs); and Detroit, MI (98 REOs).

For full report, please click the source link above.

 

 

 

 

 

 

 

 

 

 

 

FEMA Emergency Declaration – Florida Tropical Storm Nicole – Seminole Tribe of Florida

FEMA Alert
November 9, 2022

FEMA has issued an Emergency Declaration for the Seminole Tribe of Florida to supplement tribal recovery efforts in the areas affected by Tropical Storm Nicole beginning November 7, 2022 and continuing.  The following areas has been approved for assistance:

Public Assistance:

  • Big Cypress Indian Reservation
  • Brighton Indian Reservation
  • Fort Pierce Indian Reservation
  • Hollywood Indian Reservation
  • Immokalee Indian Reservation
  • Tampa Reservation

 

Florida Tropical Storm Nicole – Seminole Tribe of Florida (EM-3588-FL)

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

FEMA Emergency Declaration – Florida Tropical Storm Nicole

FEMA Alert
November 8, 2022

FEMA has issued an Emergency Declaration for the state of Florida to supplement state, tribal and local response efforts due to emergency conditions resulting from Tropical Storm Nicole beginning November 7, 2022 and continuing.  The following areas has been approved for assistance:

Public Assistance:

  • Alachua
  • Bradford
  • Brevard
  • Broward
  • Charlotte
  • Citrus
  • Clay
  • Collier
  • Desoto
  • Dixie
  • Duval
  • Flagler
  • Gilchrist
  • Glades
  • Hardee
  • Hendry
  • Hernando
  • Highlands
  • Hillsborough
  • Indian River
  • Jefferson
  • Lake
  • Lee
  • Levy
  • Manatee
  • Marion
  • Martin
  • Miami-Dade
  • Nassau
  • Okeechobee
  • Orange
  • Osceola
  • Palm Beach
  • Pasco
  • Pinellas
  • Polk
  • Putnam
  • St. Johns
  • St. Lucie
  • Sarasota
  • Seminole
  • Sumter
  • Taylor
  • Volusia
  • Wakulla

 

Florida Tropical Storm Nicole (EM-3587-FL)

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

Nicole Weakens to a Tropical Storm After Striking Florida’s East Coast as the First U.S. Hurricane in November in Nearly 40 Years

Disaster Alert
November 10, 2022

Source:  CNN

Residents and survey crews are waking up Thursday to the damage wrought by Nicole’s overnight landfall along Florida’s eastern shore, knocking out power to thousands, pushing buildings near collapse and flooding the coast as the first hurricane to hit the US in November in nearly 40 years.

A tornado threat, plus powerful wind and heavy rain, are expected to continue Thursday in parts of Florida, Georgia and South Carolina after Nicole, which hit at Category 1 strength, weakened to a tropical storm. A tropical storm warning is in effect from Sebastian Inlet, Florida, to the South Santee River in South Carolina, and along Florida’s west coast – an area struck hard by Hurricane Ian in September – from Englewood to Indian Pass. Storm surge warnings also remain in place across coastal Florida and Georgia.

Meantime, communities are assessing the damage. In Volusia County, emergency management officials reported one storm-related injury involving a tree and a vehicle. Separately, officials got “preliminary reports of a partial collapse” of a single-family residence on the coast in Daytona Beach Shores, which is still recovering from Ian’s impact.

Ahead of Nicole’s landfall, Volusia County officials told people to leave more than 20 buildings found to be structurally unsound after Ian, and the sheriff warned of potential building collapses. And in Daytona Beach Shores, at least 11 buildings were at risk of collapse, Public Safety Department Director Michael Fowler said.

In Indian River County, officials Thursday morning will “be assessing debris and messaging cleanup plans,” spokesperson Kathy Copeland. In St. Lucie County, there were so far “no serious reports of damages or injuries,” spokesperson Erick Gill said, adding, “Most likely the biggest impact is going to be beach erosion.”

At 10 a.m. ET Thursday, Nicole was still packing 50-mph sustained winds and centered about 30 miles northeast of Tampa, moving west-northwest at 16 mph.

Up to 8 inches of rain could drench eastern, central and northern portions of Florida through Saturday. And between 2 to 6 inches are expected from parts of the US southeast to the southern and central Appalachians and western mid-Atlantic, the hurricane center said.

Nicole is expected to weaken to a depression early Friday and become a post-tropical cyclone over the Southeast.

Here’s what to know now:

Residents outside Florida should now prepare: “Given the uncertainty of the storm’s strength and path as it approaches South Carolina, residents need to have their personal emergency plans ready to go just in case we need to take safety precautions later in the week,” said Kim Stenson, who heads the state’s emergency management division.

Tens of thousands without power: More than 335,000 homes and businesses in Florida were without power early Thursday, according to PowerOutage.us.

Low tide limits storm surge: Nicole’s peak winds coincided with low tide, limiting the storm surge and inundation on the shore. At Port Canaveral, the surge was measured at just under 6 feet around 4 a.m. ET, just after landfall. Later Thursday morning, surge was down to around 3 feet, but water levels are expected to remain high through high tide, between 8 a.m. and 10 a.m.

Flights canceled and schools closed: The storm’s colossal path led to the closure of many schools, colleges and universities, as well as the cancellation of hundreds of flights and the shuttering of amusement parks. Orlando International Airport halted operations Wednesday afternoon, and Miami International Airport warned of cancellations but did not plan to close.

Historic hurricane: Nicole’s landfall Thursday was the latest in a calendar year a hurricane has ever struck Florida’s Atlantic coast. It broke the record set by the Yankee Hurricane, which hit Florida’s east coast on November 4, 1935.

Where the storm hit: The storm struck just south of Vero Beach with winds of 75 mph before quickly weakening, the National Hurricane Center said. Its strong winds, downpours and storm surge thrashed some areas hit in September by Hurricane Ian. Nicole on Wednesday brought strong winds and dangerous storm surge to the northwestern Bahamas.

For full report, please click the source link above.

Hurricane Warning Issued In Florida as Nicole becomes Tropical Storm

Disaster Alert
November 8, 2022

Source:  The Weather Channel

Tropical Storm Nicole is forecast to make landfall in Florida as a hurricane or a strong tropical storm, but its impacts including prolonged coastal flooding, beach erosion, strong winds, high surf, rip currents and heavy rain will encompass a much larger area of the Southeast.

Nicole is centered several hundred miles east of the Bahamas and is tracking westward.

Nicole has a large wind field, which means impacts will be felt across a broad part of the Southeast coast far away from where its center tracks.

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W​arnings And Watches

A​ hurricane warning has been issued for areas near Florida’s Atlantic coast from Boca Raton to the Flagler – Volusia County line, and remains in effect for the northwest Bahamas, including Grand Bahama Island. This means hurricane conditions are expected in these areas.

Tropical storm warnings are in effect south of Boca Raton to Hallandale Beach, Florida, and north of the Space Coast to Glynn County, Georgia, and extend inland in eastern Florida to include the Orlando metro area, where tropical storm conditions are expected. Tropical storm warnings are also in effect for Andros, New Providence and Eleuthera Islands in the Bahamas.

In addition to the tropical storm warning, a hurricane watch remains in effect for eastern Florida north of the Space Coast to Ponte Vedra Beach and south of Boca Raton to Hallandale Beach, including Lake Okeechobee. That means hurricane conditions are possible in this areas.

T​ropical storm watches extend along part of Florida’s Gulf Coast, from Bonita Beach to the mouth of the Ochlockonee River, and extend inland to include Tampa-St. Petersburg and Ft. Myers. This means tropical storm conditions are possible in these areas.

A​ storm surge warning is also in effect from North Palm Beach, Florida, to Glynn County, Georgia, as well as a stretch of the St. Johns River in northeast Florida from Georgetown to where it empties into the Atlantic Ocean north of Jacksonville Beach. This means a dangerous, life-threatening surge of water along the coast is expected in these areas.

A​ storm surge watch extends north of Glynn County, Georgia, to the Georgia – South Carolina border, south of North Palm Beach to Hallandale Beach, and also along a part of western Florida’s Gulf Coast from Pasco County to Levy County. This means inundation from storm surge is possible in these areas.

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F​orecast Track, Intensity

Nicole made its turn and will continue its general westward track toward the Bahamas and Florida.

Nicole may become a Category 1 hurricane at any time near the northwest Bahamas or prior to landfall on Florida’s Atlantic coast sometime late Wednesday night or early Thursday morning. However, impacts will arrive well before that happens, as we’ll detail below.

Nicole will then curl north near or over Florida before getting picked up by a cold front that turns the storm northeastward over the Southeast states on Friday. The remnant energy and moisture from Nicole will team up with that cold front to wring out heavy rain up the East Coast into Saturday.

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Forecast Impacts

Below is a breakdown of what to expect from Nicole. Keep in mind that Nicole’s large size means its impacts will spread far from its center, arriving sooner than, and lasting longer than, the passage of its center.

S​torm Surge, Coastal Flood, Beach Erosion

Persistent onshore winds well ahead of Nicole’s center will lead to coastal flooding along parts of the Southeast coast from Florida to the Carolinas through Thursday, or in some areas, Friday.

This c​oastal flooding at high tide will increase each day and peak as storm surge as the center of Nicole approaches early Thursday morning. The National Hurricane Center’s peak storm surge forecast, if it occurs at high tide, is shown below.

Given coastal flooding over multiple high tide cycles and battering waves riding atop the storm surge, major beach erosion and some damage to infrastructure is expected along Florida’s east coast and parts of the Georgia coast. This is particularly the case for eastern Florida’s coast damaged from Hurricane Ian in late September, as the NWS office in Melbourne, Florida, noted.

S​ome moderate to major coastal flooding is also possible as far north as the Carolinas, including Charleston, South Carolina, and Tybee Island, Georgia.

O​ne exception to this general scenario will be a part of western Florida’s Gulf Coast. Tides will start out much lower than normal due to winds blowing offshore. But by later Thursday, water levels may quickly rise as winds switch onshore once Nicole’s center moves to the north. This may lead to some coastal flooding and storm surge in the areas shown in the map below peaking Thursday night, but possibly lingering into Friday.

 

For full report, please click the source link above.

Zombie Property Count Ticks Upward Again Across U.S. in Fourth Quarter but Remains Tiny Portion of Housing Market

Industry Update
October 27, 2022

Source: ATTOM

ATTOM, a leading curator of real estate data nationwide for land and property data, released its fourth-quarter 2022 Vacant Property and Zombie Foreclosure Report showing that 1.3 million (1,264,241) residential properties in the United States sit vacant. That figure represents 1.26 percent, or one in 79 homes, across the nation.

The report analyzes publicly recorded real estate data collected by ATTOM — including foreclosure status, equity and owner-occupancy status — matched against monthly updated vacancy data. (See full methodology below). Vacancy data is available for U.S. residential properties at https://www.attomdata.com/solutions/marketing-lists/.

The report also reveals that 284,423 residential properties in the U.S. are in the process of foreclosure in the fourth quarter of this year, up 5.2 percent from the third quarter of 2022 and up 27.4 percent from the fourth quarter of 2021. A growing number of homeowners have faced possible foreclosure since a nationwide moratorium on lenders pursuing delinquent homeowners, imposed after the Coronavirus pandemic hit in 2020, was lifted at the end of July 2021.

 

For full report, please click the source link above.