Safeguard Properties

Vacant Zombie Properties Decline as Foreclosure Moratorium Ends

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Industry Update
September 13, 2021

Source: AZ Big Media

ATTOM, curator of the nation’s premier property database, released its third-quarter 2021 Vacant Property and Zombie Foreclosure Report showing that 1.3 million (1,332,706) residential properties in the United States sit vacant. That represents 1.4 percent, or one in 74 homes, across the nation that could be classified as zombie properties.

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 enclosed below). Vacancy data is available for U.S. residential properties at https://www.attomdata.com/solutions/marketing-lists/.

The report reveals that 215,495 properties are in the process of foreclosure in the third quarter of this year, down 3.7 percent from the second quarter of 2021 and down 0.2 percent from the third quarter of 2020. Among those pre-foreclosure properties, 7,538 sit vacant in the third quarter of 2021, down quarterly by 6.7 percent and annually by 5.3 percent.

 

For full report, please click the source link above.

CFPB Sues LendUp Loans, LLC for Deceiving Borrowers

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Industry Update
September 8, 2021

Source: Consumer Financial Protection Bureau

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) filed a lawsuit in federal district court accusing LendUp Loans, LLC of violating a 2016 consent order and deceiving tens of thousands of borrowers. In 2016, the Bureau ordered LendUp to pay $1.83 million in consumer redress and a $1.8 million civil penalty and to stop misleading consumers with false claims about the cost of loans and the benefits of repeated borrowing. In today’s complaint, the CFPB alleges that, in violation of the 2016 order, LendUp has continued with much of the same illegal and deceptive marketing. The CFPB also alleges that LendUp illegally failed to provide timely and accurate notices to consumers whose loan applications were denied.

“LendUp lures consumers with false promises that repeat borrowing would allow them to ‘climb the LendUp Ladder’ and unlock lower interest rates. For tens of thousands of borrowers, the LendUp Ladder was a lie,” said CFPB Acting Director Dave Uejio. “Not only did LendUp structure its business around wholesale deception and keeping borrowers in cycles of debt, the company doubled down after getting caught the first time. We will not tolerate this illegal scheme or allow this company to continue preying on vulnerable consumers.”

 

For full report, please click the source link above.

Companies Purchasing Residential Real Estate Hits an All-Time High

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Industry Update
September 9, 2021

Source: StarTribune

LOS ANGELES — Soaring home prices and rents are fueling real estate companies’ appetite for houses, adding unwelcome competition for many would-be homebuyers.

Residential real estate bought by companies or institutions hit an all-time high of 67,943 properties in the second quarter, according to Redfin, a Seattle-based online brokerage.

That’s more than a twofold increase from a year earlier, when the pandemic temporarily stymied the real estate market. It also represents 15.9% of all the properties sold in the April-June quarter, or just below the record high 16.1% share of sales in the first quarter of 2020, Redfin said.

 

For full report, please click the source link above.

BLS Releases Job Openings and Labor Turnover Summary

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Industry Update
September 8, 2021

Source: U.S. Bureau of Labor Statistics

The number of job openings increased to a series high of 10.9 million on the last business day of July, the U.S. Bureau of Labor Statistics reported today. Hires and total separations were little changed at 6.7 million and 5.8 million, respectively. Within separations, the quits rate was unchanged at 2.7 percent while the layoffs and discharges rate was little changed at 1.0 percent. This release includes estimates of the number and rate of job openings, hires, and separations for the total nonfarm sector, by industry, by four geographic regions, and by establishment size class.

 

For full report, please click the source link above.

DOL Releases Unemployment Insurance Weekly Claims

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Industry Update
September 9, 2021

Source: U.S. Department of Labor

In the week ending September 4, the advance figure for seasonally adjusted initial claims was 310,000, a decrease of 35,000 from the previous week’s revised level. This is the lowest level for initial claims since March 14, 2020 when it was 256,000. The previous week’s level was revised up by 5,000 from 340,000 to 345,000. The 4-week moving average was 339,500, a decrease of 16,750 from the previous week’s revised average. This is the lowest level for this average since March 14, 2020 when it was 225,500. The previous week’s average was revised up by 1,250 from 355,000 to 356,250.

The advance seasonally adjusted insured unemployment rate was 2.0 percent for the week ending August 28, unchanged from the previous week’s unrevised rate. The advance number for seasonally adjusted insured unemployment during the week ending August 28 was 2,783,000, a decrease of 22,000 from the previous week’s revised level. This is the lowest level for insured unemployment since March 14, 2020 when it was 1,770,000. The previous week’s level was revised up 57,000 from 2,748,000 to 2,805,000. The 4-week moving average was 2,840,250, a decrease of 29,000 from the previous week’s revised average. This is the lowest level for this average since March 21, 2020 when it was 2,071,750. The previous week’s average was revised up by 14,250 from 2,855,000 to 2,869,250.

 

For full report, please click the source link above.

Opinion: Forbearance Will Not Lead to a Huge Wave of Foreclosures

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Industry Update
September 8, 2021

Source: CalculatedRisk Newsletter by Bill McBride

 

With house prices up sharply year-over-year … very few borrowers will have negative equity, and most seriously delinquent borrowers will be able to sell their house, as a last resort, and avoid foreclosure.

So, although foreclosures will increase from the record low levels, it will take some time (probably in 2022), and there will not be a huge wave of foreclosures like following the housing bubble.

 

Of borrowers still in plans as of mid-August, some 98% have at least 10% equity in their home – a drastically different dynamic than during the worst of the Great Recession, when more than 40% of all mortgage holders had less than 10% equity and 28% were fully underwater.

The bottom line is that most homeowners in forbearance have sufficient equity in their homes, and there will not be a huge wave of foreclosures like following the housing bubble.

 

For full report, please click the source link above.

Forbearance Volume Tails Off on Strength of August Jobs Report

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Industry Update
September 7, 2021

Source: DSNews 

After a few weeks of leveling off, the latest Forbearance and Call Volume Survey from the Mortgage Bankers Association (MBA) has found that the total number of loans now in forbearance decreased by two basis points from 3.25% of servicers’ portfolio volume in the prior week to 3.23%. According to the MBA, an estimated 1.6 million U.S. homeowners remain in forbearance plans.

The share of GSE loans (Fannie Mae and Freddie Mac) in forbearance decreased three basis points from 1.66% to 1.63%, while the share of Ginnie Mae loans in forbearance plummeted 29 basis points from 3.92% to 3.63%. Conversely, the share of portfolio loans and private-label securities (PLS) increased 34 basis points from 7.18% to 7.52%. The percentage of loans in forbearance for independent mortgage bank (IMB) servicers decreased one basis point from 3.50% to 3.49%, and the percentage of loans in forbearance for depository servicers decreased two basis points from 3.35% to 3.33%.

 

For full report, please click the source link above.

FEMA Declared Disasters New Jersey and New York Remnants of Hurricane Ida

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FEMA Alert Update – New Jersey
September 8, 2021

FEMA announced that federal disaster assistance has been made available to the state of New Jersey to supplement state and local recovery efforts in the areas affected by the remnants of Hurricane Ida that took place September 1-3, 2021.

Individual and Public Assistance
  • Bergen
  • Essex
  • Gloucester
  • Hudson
  • Hunterdon
  • Mercer
  • Middlesex
  • Morris
  • Passaic
  • Somerset
  • Union

FEMA Declared Disaster New Jersey: ZIP Code List

New Jersey Remnants Of Hurricane Ida (DR-4614)

 

FEMA Alert Update – New York
September 8, 2021

FEMA announced that federal disaster assistance has been made available to the state of New York to supplement state, tribal and local recovery efforts in the areas affected by the remnants of Hurricane Ida that took place September 1-3, 2021.

Individual Assistance
  • Bronx
  • Kings
  • Nassau
  • Queens
  • Richmond
  • Suffolk
  • Westchester
Public Assistance
  • Bronx
  • Kings
  • Nassau
  • New York
  • Queens
  • Richmond
  • Suffolk
  • Sullivan
  • Westchester

FEMA Declared Disaster New York: ZIP Code List

New Jersey Remnants Of Hurricane Ida (DR-4615)

 

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

Wall Street is Funding Fixer-Upper Houses

Posted on by Safeguard

Industry Update
September 7, 2021

Source: The Wall Street Journal 

Wall Street has made a mountain of money available to house flippers, and selling move-in-ready rehabs has rarely been easier. The challenge is finding beat-up and out-of-date properties that can be renovated and resold for a profit.

“Investors like me, we’re like ants on a sugar hill all fighting for the same projects,” said Ed Stock, who started fixing and flipping houses on New York’s Long Island after the 2008 mortgage meltdown. “It’s the greatest time to be in this market; it’s just hard to find the inventory.”

 

For full report, please click the source link above.

Various States Ease COVID-19 Consumer Protections

Posted on by Safeguard

Industry Update
September 7, 2021

Source: Lexology

On Aug. 26,  the U.S. Supreme Court declared the CDC’s eviction order to be unconstitutional, in a 6-3 decision.

Similar to their federal counterparts, individual states vary on lifting or extending COVID-related moratoriums. Embedded is a comprehensive spreadsheet capturing the current orders, legislation, and policies on foreclosures and evictions.

The following list outlines current orders and legislation from California, the District of Columbia, Illinois, Maryland, New Jersey, New York, Ohio, and Virginia, involving foreclosures and evictions in response to COVID-19.

 

For full report, please click the source link above.