Safeguard Properties

Fannie Mae: Protections for Renters Affected by COVID-19 Extended

Posted on by Safeguard

Investor Update
June 3, 2021

Source: Fannie Mae

Additional Resource:

FHFA (FHFA Extends COVID-19 Multifamily Forbearance Through September 30, 2021)

Multifamily Borrowers Now Eligible for Forbearance through September 30, 2021

WASHINGTON, DC – To continue to support renters in multifamily units and Fannie Mae-financed multifamily property owners experiencing financial difficulties as COVID-19 persists, Fannie Mae (FNMA/OTCQB) today announced the extension of its multifamily COVID-19 forbearance program through September 30, 2021. The program, which requires landlords to suspend all evictions for renters unable to pay rent during the forbearance period, was formerly set to expire on June 30, 2021.

For any Fannie Mae-financed multifamily properties with a new or modified forbearance plan as the result of a financial hardship due to COVID-19, the property owner must inform tenants in writing about tenant protections available during the property owner’s forbearance and repayment periods. In addition, the borrower is required to provide tenant protections, which include:

  • Allow the tenant flexibility to repay back rent over time and not in a lump sum;
  • Not charge the tenant late fees or penalties for non-payment of rent; and
  • Give the tenant at least a 30-day notice to vacate.

“Fannie Mae remains committed to supporting renters and multifamily property owners as COVID-19 continues to financially impact many people in the United States,” said Michele Evans, Executive Vice President and Head of Multifamily. “By extending the forbearance program for Fannie Mae multifamily borrowers, we are also extending essential protections and flexibilities for renters, which will help keep people in their apartments as the economy continues to improve.”

To access full press release, please click the source link above.

FEMA Declared Disaster Louisiana Severe Storms, Tornadoes, Flooding

Posted on by Safeguard

FEMA Alert Update
August 20, 2021

FEMA issued an update to a Presidential Major Disaster Declaration for areas in Louisiana affected by severe storms, tornadoes and flooding that took place May 17-21, 2021. The following additional parishes have been approved for assistance:

Public Assistance
  • Ascension
  • Assumption
  • Calcasieu
  • East Baton Rouge
  • Iberville
  • Lafourche

FEMA Declared Disaster Louisiana: ZIP Code List

Louisiana Severe Storms, Tornadoes and Flooding (DR-4606 Amendment 002)

 

FEMA Alert
June 2, 2021

FEMA issued a Presidential Major Disaster Declaration for areas in Louisiana affected by severe storms, tornadoes and flooding that took place May 17-21, 2021. The following parishes have been approved for assistance:

Individual Assistance
  • Ascension
  • Calcasieu
  • East Baton Rouge
  • Iberville
  • Lafayette

FEMA Declared Disaster Louisiana: ZIP Code List

Louisiana Severe Storms, Tornadoes and Flooding (DR-4606)

 

 

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

FHFA: Extended COVID-19 Multifamily Forbearance

Posted on by Ashley Shepherd

Investor Update
June 3, 2021

Source: FHFA

Washington, D.C. — Today, the Federal Housing Finance Agency (FHFA) announced that Fannie Mae and Freddie Mac (the Enterprises) will continue to offer COVID-19 forbearance to qualifying multifamily property owners through September 30, 2021, subject to the continued tenant protections FHFA has imposed during the pandemic. This is the third extension of the programs, which were set to expire June 30, 2021.

“While COVID-19 cases are declining and many homeowners continue to emerge from forbearance, many renters, who are unable benefit from rising home prices, have not financially recovered from the pandemic. To help those families still struggling to pay their rent and to help multifamily property owners maintain their properties, FHFA is extending the multifamily COVID-19 forbearance and tenant protections through the end of September 2021,” said Director Mark Calabria.

Property owners with Enterprise-backed multifamily mortgages can enter a new or, if qualified, modified forbearance if they experience a financial hardship due to the COVID-19 emergency. Property owners who enter into a new or modified forbearance agreement must:

• Inform tenants in writing about tenant protections available during the property owner’s forbearance and repayment periods; and

• Agree not to evict tenants solely for the nonpayment of rent while the property is in forbearance.

Additional tenant protections apply during the repayment periods. These protections include:

• Giving tenants at least a 30-day notice to vacate;

• Not charging tenants late fees or penalties for nonpayment of rent; and

• Allowing tenant flexibility in the repayment of back-rent over time, and not necessarily in a lump sum.

In addition to requiring written tenant notification, the Enterprises have posted the tenant protections to their respective online multifamily property lookup tool websites. The property lookup tools make it easier for tenants to find out if the multifamily property in which they reside has an Enterprise-backed mortgage.

These actions are just the latest steps FHFA has taken to benefit renters, property owners and the mortgage market during the pandemic. FHFA will continue to monitor the data and the coronavirus’ impact on tenants, borrowers, and the mortgage market and update policies as needed. FHFA may extend or sunset its policies based on updated data and health risks. Homeowners and renters can

Contacts:

​Media: Raffi Williams Raffi.Williams@FHFA.gov / Adam Russell Adam.Russell@FHFA.gov

OCC: Revitalization Activities in Areas Affected by Hurricane Maria

Posted on by Ashley Shepherd

Investor Update
May 27, 2021

Source: OCC

Summary

The Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation (collectively, the agencies) today published a statement extending the period for giving favorable consideration under Community Reinvestment Act (CRA) regulations for bank activities that continue to help revitalize or stabilize disaster areas in Puerto Rico and the U.S. Virgin Islands devastated by Hurricane Maria.

The agencies determined an extension to the original period provided in the interagency statement1 dated January 25, 2018, is appropriate given the hurricane’s continuing economic impact on Puerto Rico and the U.S. Virgin Islands.

Note for Community Banks

This rule applies to community banks2 subject to the CRA.

Highlights

The interagency statement

• grants a 36-month extension through September 20, 2023.

• reiterates that institutions located outside of the Puerto Rico and U.S. Virgin Islands receive favorable consideration for community development activities that help to revitalize or stabilize these disaster areas, consistent with the agencies’ January 2018 interagency statement and, as applicable, OCC Bulletin 2020-99, “Community Reinvestment Act: Key Provisions of the June 2020 CRA Rule and Frequently Asked Questions.”3

Further Information

Please contact Vonda Eanes, Director for CRA and Fair Lending Policy, Compliance Risk Policy, at (202) 649-5470.

Grovetta N. Gardineer
Senior Deputy Comptroller for Bank Supervision Policy

Related Link

• “Agencies Extend Period for CRA Consideration Given to Community Development Activities Responding to Hurricane Maria Disaster in Puerto Rico and the U.S. Virgin Islands” (PDF)

1 Refer to OCC News Release 2018-6, “Agencies to Give Favorable Community Reinvestment Act Consideration to Revitalization Activities in Disaster Areas Affected by Hurricane Maria.”

2 “Banks” refers to national banks and federal savings associations subject to the CRA. Generally, references to “national banks” also apply to federal branches subject to the CRA unless otherwise specified. Refer to the “Federal Branches and Agencies Supervision” booklet of the Comptroller’s Handbook for more information regarding the applicability of laws, regulations, and guidance to federal branches and agencies.

3 OCC Bulletin 2021-24, “Community Reinvestment Act: Implementation of the June 2020 Final Rule,” announced that the OCC will reconsider portions of the June 2020 CRA rule. This reconsideration should not affect the favorable CRA consideration extended by the interagency statement attached below.

 

 

ATTOM: Zombie Foreclosures Increase in Second Quarter 2021

Posted on by Ashley Shepherd

Industry Update
May 27, 2021

Source: ATTOM Data Solutions

But Zombie Foreclosures Still Represent Just One of Every 12,300 Residential Properties; Percentage of Foreclosure Properties Sitting Empty Ticks Down

IRVINE, Calif. – May 27, 2021 — ATTOM Data Solutions, curator of the nation’s premier property database, today released its second-quarter 2021 Vacant Property and Zombie Foreclosure Report showing that 1.4 million (1,409,457) residential properties in the United States are vacant this quarter, representing 1.4 percent of all homes.

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

The report reveals that 223,671 properties are in the process of foreclosure in the second quarter of this year, up 27.5 percent from the first quarter of 2021 but still down 13.3 percent from the second quarter of 2020. The number of pre-foreclosure homes or Zombie homes sitting empty (8,078 in the second quarter of 2021) was up both quarterly, by 21 percent, and annually, by 5.6 percent.

The portion of pre-foreclosure properties that have been abandoned into zombie status dropped slightly, from 3.8 percent in the first quarter of 2021 to 3.6 percent in the second quarter of 2021.

Among the nation’s total stock of 99 million residential properties, the portion represented by zombie properties remains miniscule, but has grown slightly in the second quarter of 2021. One of every 12,256 homes in the second quarter sit empty in the foreclosure process, up from one in 14,825 in the first quarter of 2021 and up from one in 12,967 in the second quarter of last year.

The count of zombie foreclosures has risen this quarter despite an ongoing federally-imposed moratorium on foreclosures aimed at helping homeowners get through economic troubles stemming from the worldwide Coronavirus pandemic. Affecting about 70 percent of home loans in the United States, the moratorium bars lenders from pursuing delinquent homeowners who have government-backed mortgages. It has been in place since last March and is currently in effect until the end of June. Some private lenders also have voluntarily offered mortgage extensions.

“The latest numbers show a spike in zombie properties during the second quarter that stands out compared to recent times, especially given the moratorium. It may simply be due to lenders foreclosing on homes that were already abandoned. We are watching that closely to see what it means and whether it’s the start of new trend,” said Todd Teta, chief product officer with ATTOM Data Solutions. “But even with the increase, zombie foreclosures are still just a dot on the housing market radar screen, which is more testimony to how strong the housing market remains. You can still walk around most neighborhoods around the country and literally not find a single empty house going through the takeover process, and that remains very good news for current homeowners, as well as potential homeowners.”

For full report, please click the source link above.

MHA: HAMP Update: June 2021 Maintenance Outage

Posted on by Safeguard

Investor Update
May 25, 2021

Source: MHA

HAMP Reporting System Maintenance Outage June 25, 2021

 

Due to a planned maintenance release, the HAMP Reporting System response files will not be available on Friday, June 25, 2021. The response files will be sent when the system is online for processing at 9:00 a.m. ET on Monday, June 28, 2021. During this timeframe, the HAMP Reporting Tool will be available for servicers to submit and upload HAMP loan data files, and the corresponding Black Knight response files will be provided as usual.

Please contact the HAMP Solution Center at support@hmpadmin.com with any questions.

FHFA: Latest Report on Non-performing Loan Sales

Posted on by Safeguard

Investor Update
May 27, 2021

Source: FHFA

Washington, D.C. – The Federal Housing Finance Agency (FHFA) today released the latest report on the sale of non-performing loans (NPLs) by Fannie Mae and Freddie Mac (the Enterprises). The Enterprise Non-Performing Loan Sales Report includes sales information about NPLs sold through December 31, 2020.  Borrower outcomes reflect NPLs sold through June 30th, 2020 and reported through December 31, 2020.

The sale of NPLs reduces the number of delinquent loans in the Enterprises’ portfolios and transfers credit risk to the private sector. FHFA and the Enterprises impose requirements on NPL buyers designed to achieve more favorable outcomes for borrowers than foreclosure.

This report shows that from program inception in 2014 through December 31, 2020, the Enterprises sold 130,808 NPLs with a total unpaid principal balance (UPB) of $24.5 billion. The loans included in the NPL sales had an average delinquency of 2.9 years and an average current mark-to-market loan-to-value ratio of 91 percent (not including capitalized arrearages).

NPL Sales Highlights:

• NPLs sold had an average delinquency of 2.9 years and an average loan-to-value ratio of 91 percent.

• The average delinquency for pools sold ranged from 1.4 years to 6.2 years.

• NPLs in New Jersey, New York and Florida represented nearly half (43 percent) of the NPLs sold.

• Fannie Mae has sold 86,216 loans with an aggregate UPB of $15.8 billion, an average delinquency of 3.0 years, and an average LTV of 89 percent.

• Freddie Mac has sold 44,592 loans with an aggregate UPB of $8.7 billion, an average delinquency of 2.8 years, and an average LTV of 95 percent. 

Borrower Outcomes Highlights:

• The borrower outcomes in the report are based on 125,750 NPLs that were settled by June 30, 2020 and reported as of December 31, 2020.

• Compared to a benchmark of similarly delinquent Enterprise NPLs that were not sold, foreclosures avoided for sold NPLs were higher than the benchmark.

• NPLs on homes occupied by borrowers had the highest rate of foreclosure avoidance outcomes (40.2 percent foreclosure avoided versus 16.8 percent for vacant properties).

• NPLs on vacant homes had a much higher rate of foreclosure, more than double the foreclosure rate of borrower-occupied properties (76.5 percent foreclosure versus 33 percent for borrower occupied properties).  Foreclosures on vacant homes typically improve neighborhood stability and reduce blight as the homes are sold or rented to new occupants.

• The average UPB of NPLs sold was $187,587.

FHFA will continue to provide reporting on NPL sales borrower outcomes on an ongoing basis.

Read the Non-Performing Loan Sales Report​.

For more information, visit the NPL page on FHFA.gov.

Contacts:

​​Media: Adam Russell Adam.Russell@FHFA.gov​​ / Raffi Williams Raffi.Williams@FHFA.gov 

Arizona Spur Fire Engulfs Homes in Yavapai County

Posted on by Safeguard

Disaster Alert
May 28, 2021

Source: KOLD CBS 13

Approximate area reportedly sustaining structural damage:

Arizona

– Bagdad (Yavapai County, 86321)

NOTE: This has NOT yet been declared a FEMA Major Disaster.

BAGDAD, Ariz. (KOLD News 13) – Crews have stopped forward progress on the Spur Fire after it burned 150 acres in the small town of Bagdad and is taking homes with it.

As of Thursday, May 27, the fire is 25% contained, having destroyed 13 primary structures, 10 or more secondary, and caused damage to utility infrastructure. At least 25 homes were lost according to the Arizona Department of Forestry and Fire Management.

Evacuations are in place and will be re-evaluated Friday morning.

Power to Bagdad has been cut as a precaution.

For full report, please click the source link above.

Tornado Causes Chaos Across Small Kansas Town

Posted on by Safeguard

Disaster Alert
May 27, 2021

Source: AccuWeather

Additional Resources:

The Weather Channel:
Severe Storms Threaten Plains, Midwest With Destructive Winds, Large Hail, Tornadoes
Train Flipped as Tornado Hits Kansas Town

Approximate locations (according to media outlets) sustaining structural damage:

Kentucky

Tornadoes
– Herndon (Rawlins County, 67739)
– Selden (Sheridan County, 67757)

NOTE: This is NOT currently a FEMA Declared Disaster.

For full report, please click the source link above.

Concerns Grow as Foreclosure Moratoria Date Nears

Posted on by Safeguard

Industry Update
May 24, 2021

Source: DS News

Additional Resource:

QuoteWizard (The Rising Fear of Eviction or Foreclosure)

An analysis by QuoteWizard, a LendingTree company, of American homeowners and renters has found that an increasing number are growing more concerned of keeping a roof over their head as foreclosure moratoria dates grown closer and unemployment levels remain unstable.

According to Nick VinZant, Senior Research Analyst and Insurance Expert at QuoteWizard, one in four are worried they will face foreclosure or eviction in the next two months.

“Nationwide, housing costs have risen by nearly 70% in the last decade,” said VinZant in the report. “Income, meanwhile, is up only 30% over the same time period. Combine this disparity with record pandemic unemployment and we have a situation where housing has simply become unaffordable for many people.”

Back in February, President Joe Biden coordinated an extension and expansion of forbearance and foreclosure relief programs to assist struggling homeowners by:

• Extending the foreclosure moratorium for homeowners through June 30, 2021;

• Extending the mortgage payment forbearance enrollment window until June 30, 2021 for borrowers who wish to request forbearance;

• Providing up to six months of additional mortgage payment forbearance, in three-month increments, for borrowers who entered forbearance on or before June 30, 2020.

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