ICE First Look at Mortgage Performance: Serious Delinquencies at Lowest Since Mid-2006 as Foreclosures Drop, Prepayments Rise

Industry Update
April 22, 2024

Source: ICE (Intercontinental Exchange, Inc.)

Intercontinental Exchange, Inc. (NYSE:ICE), a leading global provider of technology and data, reports the following “first look” at March 2024 month-end mortgage performance statistics derived from its loan-level database representing the majority of the national mortgage market.

The national delinquency rate ticked down 14 basis points (bps) to 3.20% in March, holding 27 bps higher than the record low in March 2023.

Historically, delinquencies fall an average -10.4% in March; conversely, months that end on Sundays – e.g., March 2024 – experience an average, if mostly temporary, upward pull of +6.9%.

Only the third such convergence in the last two decades, this March’s 4.2% drop in the delinquency rate is in line with the previous cases in which March ended on a Sunday.

Serious delinquencies (loans 90+ days past due but not in active foreclosure) dropped 24K (-5.2%) from February to hit their lowest level since June 2006.

March saw less inflow of past-due payments as well as fewer rolls to later stages of delinquency, with total cures up 9% as early-, mid- and late-stage delinquencies all saw improvement.

Even accounting for the 5.3% month-over-month rise in foreclosure starts, the month’s 26K starts was still below the average for the past 12 months.

The number of loans in active foreclosure fell to 205K in March – the fewest since January 2022 and still 28% below (-77K) pre-pandemic levels – with 5.8K foreclosures completed in the month.

Prepayment activity rose to its highest level in seven months driven by the lower rate environment of January and early February combined the start of the spring homebuying season.

 

For full report, please click the source link above.

 

Share of Mortgage Loans in Forbearance Remains at .22% in March

Industry Update
April 22, 2024

Source: Mortgage Bankers Association

The Mortgage Bankers Association’s (MBA) monthly Loan Monitoring Survey revealed that the total number of loans now in forbearance remained unchanged at 0.22% as of March 31, 2024. According to MBA’s estimate, 110,000 homeowners are in forbearance plans. Mortgage servicers have provided forbearance to approximately 8.1 million borrowers since March 2020.

In March 2024, the share of Fannie Mae and Freddie Mac loans in forbearance remained at 0.12%. Ginnie Mae loans in forbearance stayed at 0.40%, and the forbearance share for portfolio loans and private-label securities (PLS) increased 2 basis points to 0.31%.

“For the past three months, the number of loans in forbearance has held steady,” said Marina Walsh, CMB, MBA’s Vice President of Industry Analysis. “The current labor market is showing resilience, minimizing the need for mortgage forbearance. However, life events and temporary hardships still happen, regardless of employment conditions, which may explain why we have reached a floor in the forbearance rate.”

 

For full report, please click the source link above.

 

FEMA Major Disaster Declaration – New Hampshire Severe Storms and Flooding

FEMA Alert
April 19, 2024  

FEMA has issued a Major Disaster Declaration for the state of New Hampshire to supplement state, tribal, and local recovery efforts in areas affected by severe storms and flooding from January 9-14, 2024.  The following counties have been approved for assistance:

Public Assistance:

  • Grafton
  • Rockingham

 

New Hampshire Severe Storms and Flooding (DR-4771-NH)

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

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 Major Disaster Declaration – Morongo Band of Mission Indians Severe Storms and Flooding

FEMA Alert
April 19, 2024  

***Please note, only properties located within the Morongo Indian Reservation are approved for assistance.***

FEMA has issued a Major Disaster Declaration for the Morongo Band of Mission Indians to supplement tribal recovery efforts in areas affected by severe storms and flooding from January 31 – February 9, 2024.  The following counties have been approved for assistance:

Public Assistance:

  • Morongo Indian Reservation

 

California Severe Storms and Flooding (DR-4772-CA)

President Joseph R. Biden, Jr. Approves Major Disaster Declaration for the Morongo Band of Mission Indians

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 Major Disaster Declaration – Hoopa Valley Tribe Severe Winter Storm

FEMA Alert
April 19, 2024  

***Please note, only properties located within the Hoopa Valley Indian Reservation are approved for assistance.***

FEMA has issued a Major Disaster Declaration for the Hoopa Valley Tribe to supplement tribal recovery efforts in areas affected by a severe winter storm from January 30-31, 2024.  The following counties have been approved for assistance:

Public Assistance:

  • Hoopa Valley Indian Reservation

 

California Severe Winter Storm (DR-4773-CA)

President Joseph R. Biden, Jr. Approves Major Disaster Declaration for the Hoopa Valley Tribe

Map of Affected Area

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 Major Disaster Declaration – Vermont Severe Winter Storm

FEMA Alert
April 19, 2024  

FEMA has issued a Major Disaster Declaration for the state of Vermont to supplement state, tribal and local recovery efforts in areas affected by a severe winter storm from January 9-13, 2024.  The following counties have been approved for assistance:

Public Assistance:

  • Chittenden
  • Essex
  • Franklin
  • Lamoille
  • Orleans

 

Vermont Severe Winter Storm (DR-4770-VT)

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

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

Syracuse Officials to Devote More Resources to Combat Vacant Property Problem

One Community Update
April 11, 2024

Source: cnycentral.com

City officials in charge of housing policy see vacant properties as a major obstacle to achieving safer, stronger neighborhoods. Vacant buildings disproportionately account for structure fires, attract crime, and drive down the value of the properties around it.

In recent years, more resources have been thrown at the issue. This year, the goal is to accelerate those efforts as the city takes on an ambitious overhaul of its aging housing stock.

“We’re trying to take what was once an eyesore and turn it into an asset or an amenity for the neighbors,” Katelyn Wright said.

Wright is the executive director of the Greater Syracuse Land Bank, charged with restoring vacant properties. In the 10 years since the Land Bank was established, Wright said that the number of vacant properties in the city has dropped by around 800; but there are still just over 1,000 left to handle. While Wright concedes there is a lot of work to do, the Land Bank’s efforts have returned about $2 million in property taxes annually to the city.

Local direct funding is somewhat modest; the city provides about $750k, and an additional approximate $250k comes from Onondaga County. Wright said that this money is used for critical day-to-day operations to help keep them afloat, like upkeep and security at the properties they own and maintain. That kind of work helps keep Land Bank properties from causing nuisances; according to Wright, only one of their properties caught fire last year compared to dozens of other vacant properties.

For the first time, there is a budget line specifically earmarked for Land Bank seizures in the 2025 fiscal year proposal from the Mayor’s Office; this would provide the Land Bank with $300k for that purpose if approved.

Additionally, Wright commended city officials for deploying new strategies to accelerate the process of foreclosing tax-delinquent properties.

 

For full report, please click the source link above.

Macon County Board to Address Abandoned, Derelict Properties

One Community Update
April 12, 2024

Source: hearld-review.com

The Macon County Board has approved an agreement with Central Illinois Land Bank Authority to address abandoned and derelict properties in the county.

Most of the properties will be outside the Decatur city limits.

Director Mike Davis said the land bank’s goal is to assist communities with distressed properties but not tell them what to do.

“The community decides what they want to do,” Davis said.

The aim of the land bank, according to its website, is to revitalize neighborhoods, increase property values, stabilize real estate markets and redevelop properties. The land bank already works with Vermilion and Champaign counties.

“The idea of this land bank and others is to help deal with distressed properties,” Davis said at Thursday’s county board meeting. “We turn them into productive use and get them back on the tax rolls.”

The land bank wrote a grant for $337,000, he said, and he’ll be working closely with Macon County Administrator Tammy Wilcox to create a list of properties.

“My goal is, how do I add capacity to communities and bring in more resources and clean up the community and do good work?” Davis said.

In other business, the board approved a contract between Macon and the Macon County Sheriff’s Office for police services and issued a proclamation declaring April Child Abuse Prevention Month.

 

For full report, please click the source link above.

Casey, Capito Introduce Legislation to Revitalize Communities by Eliminating Blighted Property

One Community Update
April 18, 2024

Source: casey.senate.gov

U.S. Senators Bob Casey (D-PA) and Shelley Moore Capito (R-WV) introduced the Neighborhood Revitalization and Land Banking Act to help public land banks acquire blighted properties which can then be repurposed for commercial, residential, or recreational use that improves the quality of living in communities and local economies across the United States. This bill would additionally invest in increasing expertise and research in the field of land banking through the Blighted Property Remediation Fellowship Program.

“Land banks help turn blighted properties into community assets by stepping in to acquire and repurpose the vacant or deteriorating properties that too often stand in the way of neighborhood revitalization,” said Senator Casey. “The Neighborhood Revitalization and Land Banking Act will invest in the land banks dedicating their services to rehabilitating blighted and vacant land, making it easier for communities to maximize their potential while creating a cleaner, safer place to live.”

“Removal of blighted, vacant, and abandoned properties is an important step in community revitalization efforts, and land banks serve a critical role in acquiring and encouraging reuse and redevelopment of these properties,” Senator Capito said. “I’m proud to introduce the Neighborhood Revitalization and Land Banking Act, which will play a key role in helping continue the success of land banks in West Virginia.”

“We thank Senator Casey and Senator Capito for recognizing the unique and varied challenges that vacant, abandoned, and deteriorated properties pose to communities in rural, urban, and suburban communities, for acknowledging the critical role of land banks serving these communities, and for developing targeted federal solutions through this important federal legislation,” said Kathleen J. Guillaume-Delemar, President and CEO of the Center for Community Progress, the only national nonprofit organization dedicated to addressing widespread vacancy and abandonment. “The Neighborhood Revitalization and Land Banking Act will support and scale up the innovative and impactful work that land banks around the country are already doing despite scarce resources, and will drive further innovation, expand critical data gathering, and build capacity in disinvested communities most in need of revitalization. It is particularly powerful that the champions of this bill are from Pennsylvania and West Virginia, two states with growing land bank movements making positive change possible across rural communities, small cities, and large metro areas alike.”

 

For full report, please click the source link above.

Top 10 ZIPS with Highest Foreclosure Rates in Q1 and March 2024

Industry Update
April 12, 2024

Source: ATTOM

According to ATTOM’s newly released Q1 and March 2024 U.S. Foreclosure Market Report, there were a total of 95,349 U.S. properties with foreclosure filings in the first quarter. That figure was up 3 percent from the previous quarter but down less than 1 percent from a year ago.

ATTOM’s latest foreclosure activity analysis reported that nationwide one in every 1,478 properties had a foreclosure filing in Q1 2024. The report noted that states with the highest foreclosure rates in Q1 2024 were Delaware (one in every 894 housing units with a foreclosure filing); New Jersey (one in every 919 housing units); South Carolina (one in every 929 housing units); Nevada (one in every 961 housing units); and Florida (one in every 973 housing units).

The report also noted that among those 224 metro areas with a population greater than 200,000, those with the highest foreclosure rates in Q1 2024 were Columbia, South Carolina (one in every 569 housing units); Spartanburg, South Carolina (one in 597); Lakeland, Florida (one in 624); Atlantic City, New Jersey (one in 628); and Cleveland, Ohio (one in 662).

In this post, we take a more granular look by diving deep into the data behind ATTOM’s Q1 and March 2024 foreclosure report to uncover the top 10 U.S. zip codes with the highest foreclosure rates in Q1 2024. Among those larger zips with 1,000 or more housing units and 10 or more foreclosure filings in Q1 2024, those with the worst foreclosure rates include: 77327 – Cleveland, Texas (on in every 15 housing units); 93222 – Frazier Park, California (one in every 39); 83644 – Middleton, Idaho  (one in every 68); 19462 – Plymouth Meeting, Pennsylvania (one in every 78); 33946 – Placida, Florida (one in every 81); 95542 – Garberville, California (one in every 102); 95454 – Laytonville, California (one in every 106); 95428 – Covelo, California (one in every 131); 95464 – Nice, California (one in every 141); and 77702 – Beaumont, Texas (one in every 155).

 

For full report, please click the source link above.

 
x

CHIEF EXECUTIVE OFFICER

Alan Jaffa

Alan Jaffa is the chief executive officer for Safeguard, 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® finalist in 2013.

x

Chief Operating Officer

Michael Greenbaum

Michael Greenbaum is the chief operating officer for Safeguard. Mike has been instrumental in aligning operations to become more efficient, effective, and compliant with our ever-changing industry requirements. Mike has a proven track record of excellence, partnership and collaboration at Safeguard. Under Mike’s leadership, all operational departments of Safeguard have reviewed, updated and enhanced their business processes to maximize efficiency and improve quality control.

Mike joined Safeguard in July 2010 as vice president of REO and has continued to take on additional duties and responsibilities within the organization, including the role of vice president of operations in 2013 and then COO in 2015.

Mike built his business career in supply-chain management, operations, finance and marketing. He has held senior management and executive positions with Erico, a manufacturing company in Solon, Ohio; Accel, Inc., a packaging company in Lewis Center, Ohio; and McMaster-Carr, an industrial supply company in Aurora, Ohio.

Before entering the business world, Mike served in the U.S. Army, Ordinance Branch, and specialized in supply chain management. He is a distinguished graduate of West Point (U.S. Military Academy), where he majored in quantitative economics.

x

CHIEF INFORMATION OFFICER

Sean Reddington

Sean Reddington is the new Chief Information Officer for Safeguard Properties LLC. Sean has over 15+ years of experience in Information Services Management with a strong focus on Product and Application Management. Sean is responsible for Safeguard’s technological direction, including planning, implementation and maintaining all operational systems

Sean has a proven record of accomplishment for increasing operational efficiencies, improving customer service levels, and implementing and maintaining IT initiatives to support successful business processes.  He has provided the vision and dedicated leadership for key technologies for Fortune 100 companies, and nationally recognized consulting firms including enterprise system architecture, security, desktop and database management systems. Sean possesses strong functional and system knowledge of information security, systems and software, contracts management, budgeting, human resources and legal and related regulatory compliance.

Sean joined Safeguard Properties LLC from RenPSG Inc. which is a nationally leading Philintropic Software Platform in the Fintech space. He oversaw the organization’s technological direction including planning, implementing and maintaining the best practices that align with all corporate functions. He also provided day-to-day technology operations, enterprise security, information risk and vulnerability management, audit and compliance, security awareness and training.

Prior to RenPSG, Sean worked for DMI Consulting as a Client Success Director where he guided the delivery in a multibillion-dollar Fortune 500 enterprise client account. He was responsible for all project deliveries in terms of quality, budget and timeliness and led the team to coordinate development and definition of project scope and limitations. Sean also worked for KPMG Consulting in their Microsoft Practice and Technicolor’s Ebusiness Division where he had responsibility for application development, maintenance, and support.

Sean is a graduate of Rutgers University with a Bachelor of Arts and received his Masters in International Business from Central Michigan University. He was also a commissioned officer in the United States Air Force prior to his career in the business world.

x

General Counsel and Executive Vice President

Linda Erkkila, Esq.

Linda Erkkila is the general counsel and executive vice president for Safeguard and oversees the legal, human resources, training, and compliance departments. Linda’s responsibilities cover regulatory issues that impact Safeguard’s operations, risk mitigation, enterprise strategic planning, human resources and training initiatives, compliance, litigation and claims management, and 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. Her practice spans over 20 years, and Linda’s experience covers regulatory disclosure, corporate governance compliance, risk assessment, executive compensation, litigation management, and merger and acquisition activity. Her experience at a former Fortune 500 financial institution during the subprime crisis helped develop Linda’s pro-active approach to change management during periods of heightened regulatory scrutiny.

Linda previously served as vice president and attorney for National City Corporation, as securities and corporate governance counsel for Agilysys Inc., and as an associate at Thompson Hine LLP. She earned her JD at Cleveland-Marshall College of Law. Linda holds a degree in economics from Miami University and an MBA. In 2017, Linda was named as both a “Woman of Influence” by HousingWire and as a “Leading Lady” by MReport.

x

Chief Financial Officer

Joe Iafigliola

Joe Iafigliola is the Chief Financial Officer for Safeguard. Joe is responsible for the Control, Quality Assurance, Business Development, Accounting & Information Security departments, and is a Managing Director of SCG Partners, a middle-market private equity fund focused on diversifying and expanding Safeguard Properties’ business model into complimentary markets.

Joe has been in a wide variety of roles in finance, supply chain management, information systems development, and sales and marketing. His career includes senior positions with McMaster-Carr Supply Company, Newell/Rubbermaid, and Procter and Gamble.

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.

x

AVP, High Risk and Investor Compliance

Steve Meyer

Steve Meyer is the assistant vice president of high risk and investor compliance for Safeguard. In this role, Steve is responsible for managing our clients’ conveyance processes, Safeguard’s investor compliance team and developing our working relationships with cities and municipalities around the country. He also works directly with our clients in our many outreach efforts and he represents Safeguard at a number of industry conferences each year.

Steve joined Safeguard in 1998 as manager over the hazard claims team. He was instrumental in the development and creation of policies, procedures and operating protocol. Under Steve’s leadership, the department became one of the largest within Safeguard. In 2002, he assumed responsibility for the newly-formed high risk department, once again building its success. Steve was promoted to director over these two areas in 2007, and he was promoted to assistant vice president in 2012.

Prior to joining Safeguard, Steve spent 10 years within the insurance industry, holding a number of positions including multi-line property adjuster, branch claims supervisor, and multi-line and subrogation/litigation supervisor. Steve is a graduate of Grove City College.

x

AVP, Operations

Jennifer Jozity

Jennifer Jozity is the assistant vice president of operations, overseeing inspections, REO and property preservation for Safeguard. Jen ensures quality work is performed in the field and internally, to meet and exceed our clients’ expectations. Jen has demonstrated the ability to deliver consistent results in order audit and order management.  She will build upon these strengths in order to deliver this level of excellence in both REO and property preservation operations.

Jen joined Safeguard in 1997 and was promoted to director of inspections operations in 2009 and assistant vice president of inspections operations in 2012.

She graduated from Cleveland State University with a degree in business.

x

AVP, Finance

Jennifer Anspach

Jennifer Anspach is the assistant vice president of finance for Safeguard. She is responsible for the company’s national workforce of approximately 1,000 employees. She manages recruitment strategies, employee relations, training, personnel policies, retention, payroll and benefits programs. Additionally, Jennifer has oversight of the accounts receivable and loss functions formerly within the accounting department.

Jennifer joined the company in April 2009 as a manager of accounting and finance and a year later was promoted to director. She was named AVP of human capital in 2014. Prior to joining Safeguard, she held several management positions at OfficeMax and InkStop in both operations and finance.

Jennifer is a graduate of Youngstown State University. She was named a Crain’s Cleveland Business Archer Award finalist for HR Executive of the Year in 2017.

x

AVP, Application Architecture

Rick Moran

Rick Moran is the assistant vice president of application architecture for Safeguard. Rick is responsible for evolving the Safeguard IT systems. He leads the design of Safeguard’s enterprise application architecture. This includes Safeguard’s real-time integration with other systems, vendors and clients; the future upgrade roadmap for systems; and standards designed to meet availability, security, performance and goals.

Rick has been with Safeguard since 2011. During that time, he has led the system upgrades necessary to support Safeguard’s growth. In addition, Rick’s team has designed and implemented several innovative systems.

Prior to joining Safeguard, Rick was director of enterprise architecture at Revol Wireless, a privately held CDMA Wireless provider in Ohio and Indiana, and operated his own consulting firm providing services to the manufacturing, telecommunications, and energy sectors.

x

AVP, Technology Infrastructure and Cloud Services

Steve Machovina

Steve Machovina is the assistant vice president of technology infrastructure and cloud services for Safeguard. He is responsible for the overall management and design of Safeguard’s hybrid cloud infrastructure. He manages all technology engineering staff who support data centers, telecommunications, network, servers, storage, service monitoring, and disaster recovery.

Steve joined Safeguard in November 2013 as director of information technology operations.

Prior to joining Safeguard, Steve was vice president of information technology at Revol Wireless, a privately held wireless provider in Ohio and Indiana. He also held management positions with Northcoast PCS and Corecomm Communications, and spent nine years as a Coast Guard officer and pilot.

Steve holds a BBA in management information systems from Kent State University in Ohio and an MBA from Wayne State University in Michigan.

x

Assistant Vice president of Application Development

Steve Goberish

Steve Goberish, is the assistant vice president of application development for Safeguard. He is responsible for the maintenance and evolution of Safeguard’s vendor systems ensuring high-availability, security and scalability while advancing the vendor products’ capabilities and enhancing the vendor experience.

Prior to joining Safeguard, Steve was a senior technical architect and development manager at First American Title Insurance, a publicly held title insurance provider based in southern California, in addition to managing and developing applications in multiple sectors from insurance to VOIP.

Steve has a bachelor’s degree from Kent State University in Ohio.