Page 213 – Safeguard Properties

MBA: Mortgage Delinquencies Decrease in Fourth Quarter of 2019

Posted on February 14, 2020February 14, 2020 by Safeguard

Industry Update
February 11, 2020

Source: MBA

WASHINGTON, D.C. (February 11, 2020) – The delinquency rate for mortgage loans on one-to-fourunit residential properties decreased to a seasonally adjusted rate of 3.77 percent of all loans outstanding at the end of the fourth quarter of 2019, according to the Mortgage Bankers Association’s (MBA) National Delinquency Survey.

The delinquency rate was down 20 basis points from the third quarter of 2019 and 29 basis points from one year ago. The percentage of loans on which foreclosure actions were started in the fourth quarter remained unchanged at 0.21 percent.

“The mortgage delinquency rate in the final three months of 2019 fell to its lowest level since the current survey series began in 1979,” said Marina Walsh, MBA’s Vice President of Industry Analysis. “Mortgage delinquencies track closely to the U.S. unemployment rate, and with unemployment at historic lows, it’s no surprise to see so many households paying their mortgage on time.”

Added Walsh, “Signs of healthy conditions were seen in other parts of the survey. The foreclosure inventory rate – the percentage of loans in the foreclosure process – was at its lowest level since 1985. Furthermore, states with lengthier judicial processes continued to chip away at their foreclosure inventories, and it also appears that with home-price appreciation and equity accumulation, distressed borrowers have had alternative options to foreclosure.”

Key findings of MBA’s Fourth Quarter of 2019 National Delinquency Survey:

• Compared to last quarter, the seasonally adjusted mortgage delinquency rate decreased for all loans outstanding. By stage, the 30-day delinquency rate decreased 3 basis points to 2.17 percent, the 60-day delinquency rate decreased 5 basis points to 0.70 percent, and the 90-day delinquency bucket decreased 12 basis points to 0.90 percent.

• By loan type, the total delinquency rate for conventional loans decreased 18 basis points to 2.82 percent over the previous quarter. The FHA delinquency rate increased 16 basis points to 8.38 percent, and the VA delinquency rate decreased by 29 basis points to 3.64 percent over the previous quarter.

• On a year-over-year basis, total mortgage delinquencies decreased for all loans outstanding. The delinquency rate decreased by 37 basis points for conventional loans, decreased 27 basis points for FHA loans and decreased 7 basis points for VA loans from the previous year.

• The delinquency rate includes loans that are at least one payment past due, but does not include loans in the process of foreclosure. The percentage of loans in the foreclosure process at the end of the fourth quarter was 0.78 percent, down 6 basis points from the third quarter of 2019 and 17 basis points lower than one year ago. This was the lowest foreclosure inventory rate since the third quarter of 1985.

• The seriously delinquent rate, the percentage of loans that are 90 days or more past due or in the process of foreclosure, was 1.76 percent – a decrease of 5 basis points from last quarter – and a decrease of 30 basis points from last year. This is the lowest rate since the third quarter of 2000. The seriously delinquent rate decreased 9 basis points for conventional loans, increased 8 basis points for FHA loans, and increased 5 basis points for VA loans from the previous quarter. Compared to a year ago, the seriously delinquent rate decreased 34 basis points for conventional loans, decreased 29 basis points for FHA loans and decreased 4 basis points for VA loans.

The states with the largest decreases in their foreclosure inventory rate over the previous quarter include: New York (27 bps); Maine (27 bps); Hawaii (17 bps); New Jersey (15 bps); New Mexico (14 bps); and Vermont (14 bps). All of these states except Hawaii have judicial foreclosure processes; Hawaii has both judicial and non-judicial processes.

Relentless Storms Roll Across Southern U.S.

Posted on February 13, 2020February 19, 2020 by Safeguard

Updated 2/18/20: WSFA NBC 12 issued a report outlining a statewide emergency declaration issued by Alabama Governor Kay Ivey in response to widespread flooding.

Gov. Ivey declares State of Emergency after Alabama flooding

Additional Resources:

Office of Alabama Governor Kay Ivey (Governor Ivey Issues State of Emergency to Aid in Alabama Flooding Recovery Efforts)

Associated County ZIP Code List (Statewide)

Updated 2/17/20: Time published an article offering the latest updates on severe flooding that has occurred in Mississippi and Tennessee.

Mississippi and Tennessee Have Been Deluged With Near-Record Levels of Flooding. Here’s What to Know

Approximate locations sustaining home damage:

Tennessee
Morris Chapel (Hardin County, 38361)
*Landslide
Savannah (Hardin County, 38372)
*Flooding

Updated 2/17/20: The Weather Channel issued a report detailing river flooding in Jackson, Miss., that has led to home damage.

Mississippi Flooding Continues As Pearl River Nears Crest; Dozens of Homes Already Damaged

Additional Resources:

Mississippi Emergency Management Agency (MEMA): Governor Reeves Issues State of Emergency

Associated County ZIP Code List (Statewide)

MEMA: Preliminary Damage Report for Feb. 10-14 (Pearl River Flood Event)

Approximate locations sustaining home damage (flooding):

Mississippi
Jackson (Hinds County)
39201
39202
39203
39204
39205
39206
39207
39208
39209
39210
39211
39212
39213
39215
39216
39217
39218
39225
39232
39236
39250
39269
39271
39272
39282
39283
39284

Disaster Alert
February 13, 2020

Source: The Weather Channel

Additional Resource:

Office of Virginia Governor Ralph S. Northam (Eo-50 Declaration of a State of Emergency Due to Extreme Flooding)

Associated County ZIP Code List (Statewide)

Approximate locations sustaining home damage (tornadoes) or flooding:

Florida
Pinellas Park (Pinellas County, 33781, 33782)
*Concentrated tornado damage in Palm Grove Mobile Home Community)

Georgia
Folsom (Bartow County, 30103)
*Damage from unconfirmed tornado

Kentucky
Dayhoit (Harlan County, 40824)
*Flooding

Mississippi
Carthage (Leake County, 39051)
Pickens (Holmes County, 39146, 39179)
Yazoo City (Yazoo County, 39194)
*Wind damage/flooding

South Carolina
Spartanburg (Spartanburg County, 29301, 29302, 29303, 29306, 29307, 29316)

Virginia
Leesburg (Loudoun County, 20175, 20176)
Richlands (Tazewell County, 24641)

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

A train pulling 96 cars loaded with ethanol was burning Thursday morning after being derailed by a rockslide in Kentucky.

The train derailed about 7:05 a.m. in Draffin, Kentucky, about 125 miles southeast of Lexington, according to a statement from CSX.

The rockslide derailed two locomotives and an unknown number of rail cars into the Big Sandy River near Pond Creek Road, the statement said. Some diesel fuel made it into the river, WYMT reported.

Pike County Emergency Management Director Doug Tackett said the two people were taken to a hospital in “pretty good shape,” according to a Kentucky Department of Transportation Facebook post.

Kentucky State Police spokesman William Petry said authorities were not sure whether diesel fuel or ethanol was fueling the blaze, but authorities decided to let the fire burn itself out since it did not pose a public safety threat.

“Luckily the train wasn’t going very fast, so it saved them from a major disaster,” Petry said.

The National Transportation Safety Board said it was sending team of six to investigate the derailment.

Areas in Pike County have received 5 to 7 inches of rain this month, according to weather.com meteorologist Linda Lam.

The rockslide is just one of many problems caused by a line of strong storms moving across the South this week. The system has resulted in flooding, sinkholes, downed trees, power outages and wind damage.

In Morgan County, Alabama, U.S. Highway 231 was closed indefinitely Thursday morning after it was damaged by downpours this week, the Alabama Department of Transportation said.

All lanes in both directions were closed on a portion of the highway near Lacey Springs, about 70 miles northeast of Birmingham, Alabama. A crack developed in the southbound lanes of the roadway on Tuesday, WHNT reported.

Repairs were planned for Thursday, but the road shifted overnight because of more rain, the Morgan County Sheriff’s Office said. Detours have been set up.

Damage was reported across North Alabama. A large tree fell on cars outside the Limestone County Courthouse on Wednesday night. There were three people inside one of the cars, but they were not hurt, WAAY reported.

For full report, please click the source link above.

Fannie Mae: SVC-2020-01: Servicing Guide Update

Posted on February 13, 2020February 13, 2020 by Safeguard

Investor Update
February 12, 2020

Source: Fannie Mae

The Servicing Guide has been updated to include changes to the following:

▪ Prorated attorney fees and foreclosure milestone invoicing*: We updated the foreclosure milestone schedule and
eliminated prorated fee requirements.

▪ Delinquency exception reporting *: We clarified when delinquency status exception reports will be made available to servicers.

We are also reminding servicers of their responsibility to compensate the law firm for default-related services that are not a part of the allowable foreclosure attorney fee and would otherwise be considered a servicing function included in the servicing fee.

*Policy change not applicable to reverse mortgage loans.

For full update, please click the source link above.

Freddie Mac: FHLMC Guide Bulletin 2020-02

Posted on February 13, 2020February 13, 2020 by Safeguard

Investor Update
February 12, 2020

Source: Freddie Mac

Review today’s Single-Family Seller/Servicer Guide (Guide) Bulletin 2020-02 to learn about servicing updates related to the following:

Cooperative share loans
Voluntary partial cancellations

The Bulletin also includes other updates that may be important to your business.

Need help looking for a requirement in our Guide on our website? Try Cobrowse.

Allegany County Land Bank Aims for Busy 2020

Posted on February 12, 2020February 12, 2020 by Safeguard

Land Bank Update
February 11, 2020

Source: Olean Times Herald

BELMONT — More properties, a new partner and back-end improvements aim to make 2020 a busy year for the Allegany County Land Bank Corporation.

In a report to the Allegany County Board of Legislators on Monday, land bank Executive Director Jason Isaman spelled out how the nonprofit established by the county has — and will — keep fighting blighted properties.

New York’s first 10 land banks were established in 2012 under the New York Land Bank Act. Today, there are 25, including in Allegany, Cattaraugus and Steuben counties. The Allegany County group’s board first met March 28, 2016.

The first two properties were acquired in 2017, with 16 sites now having been acquired. Ten of those properties had structures removed, while three others have been renovated. Of those properties, eight were picked up in 2019 alone.

For full article, please click the source link above.

Washington City Considers Joining the County’s Land Bank

Posted on February 12, 2020 by Safeguard

Land Bank Update
February 5, 2020

Source: Observer-Reporter

Washington city council members continued an ongoing discussion Monday over wanting to have more leverage in any potential agreement to join the county’s land bank.

The motion to join Washington County Land Bank is on the agenda for Thursday’s meeting, but Mayor Scott Putnam said he would like to see some “language changes” to the agreement.

“I think the principal of it is a good idea, but I just want some things cleared up before the agreement is in place,” he said.

The four-party, “intergovernmental cooperation agreement,” would consist of the city, land bank, county commissioners and the city’s school district, according to Rob Phillips, assistant community development director for Redevelopment Authority of Washington County.

Phillips, who oversees the land bank for the redevelopment authority, said the purpose of the agreement is to allow the land bank to purchase city property through judicial sale, then renovate and sell the properties to get them back on the tax base.

“We target those properties because the price is fixed and it’s low,” Phillips said. “Typically, the buildings that we’re looking at need substantial renovations to bring them back to productive use.”

In the time between the property’s rehabilitation and its sale, however, the city would be responsible for maintenance, grass cutting and securing the building, Phillips said. That raised concerns for Putnam, who believes the city should at least be compensated for any repairs, boarded up windows or lawn maintenance.

“We are currently budgeting for abandoned property maintenance,” Putnam said. “But if they’re going to sell these properties and get some money for them, we’d just like some back for the maintenance.”

Phillips said the land bank board is “uncomfortable” sharing any profits made from the sale of the properties with the city.

For full article, please click the source link above.

Hartford Land Bank Announces Executive Director

Posted on February 12, 2020February 12, 2020 by Safeguard

Land Bank Update
February 5, 2020

Source: Hartford Courant

Hartford’s blight remediation director is leaving her city position after three years to lead the newly formed Hartford Land Bank, the very resource she helped develop to reclaim vacant, tax-delinquent and neglected properties.

Laura Settlemyer became Hartford’s first blight czar in 2016, bringing experience in the revitalization of distressed neighborhoods and properties in Flint, Michigan, Detroit and New Orleans. Starting this month, she’ll serve as executive director of the new nonprofit, the first such land bank in Connecticut created to return blighted properties to safe and decent condition, and get them back on the tax rolls.

The mayor plans to fill Settlemyer’s position, city spokesman Vasishth Srivastava said.

“We are excited to get the Land Bank up and running, and Laura Settlemyer is a great choice to lead its efforts,” Mayor Luke Bronin said. “In her three years with the city, she helped us reduce blight and create a framework to make an even bigger impact going forward. The City and the Land Bank will work closely not only to get properties fixed up, but also to get them into the hands of residents and people who will care for their homes and invest in our community.”

For full article, please click the source link above.

FHFA: Foreclosure Prevention Report – October 2019

Posted on February 6, 2020 by Safeguard

Investor Update
February 3, 2020

Source: FHFA

October 2019 Highlights — Foreclosure Prevention

The Enterprises’ Foreclosure Prevention Actions:

• The Enterprises completed 9,082 foreclosure prevention actions in October, bringing the total to 4,390,118 since the start of the conservatorships in September 2008. Over half of these actions have been permanent loan modifications.

• There were 5,801 permanent loan modifications in October, bringing the total to 2,379,758 since the conservatorships began in September 2008.

• Twenty-six percent of modifications in October were modifications with principal forbearance. Modifications with extend-term only accounted for 67 percent of all loan modifications during the month.

• There were 508 short sales and deeds-in-lieu of foreclosure completed in October, up 17 percent compared with September.

The Enterprises’ Mortgage Performance:

• The serious delinquency rate remained unchanged at 0.65 percent at the end of October from September.

The Enterprises’ Foreclosures:

• Third-party and foreclosure sales increased 5 percent from 3,021 in September to 3,174 in October.

• Foreclosure starts decreased from 10,975 in September to 9,678 in October.

October 2019 Highlights — Refinance Activities

• Total refinance volume increased in October 2019 as mortgage rates fell in previous months to lows last observed in 2015. Mortgage rates increased in October: the average interest rate on a 30-year fixed rate mortgage rose to 3.69 percent from 3.61 percent in September.

• In October 2019, the percentage of cashout refinances decreased to 38 percent as mortgage rates fell in previous months, creating more opportunities for non cashout borrowers to refinance at lower rates and lower their monthly payments.

• In October 2019, 2 refinances were completed through the High LTV Refinance Option, bringing total refinances through the High LTV Refinance Option from the inception of the program to 4.

Attachments: Foreclosure Prevention, Refinance, and FPM Report – October 2019

FHFA: Financial Advisor Hire

Posted on February 6, 2020 by Safeguard

Investor Update
February 3, 2020

Source: FHFA

Washington, D.C. – Today, the Federal Housing Finance Agency (FHFA) selected Houlihan Lokey Capital, Inc. (Houlihan Lokey) as a financial advisor to assist in the development and implementation of a roadmap to responsibly end the conservatorships of Fannie Mae and Freddie Mac (the Enterprises). While developing the roadmap, Houlihan Lokey will consider business and capital structures, market impacts and timing, and available capital raising alternatives, among other items as outlined in the previously published Statement of Work.

Contacts:
Media: Raffi Williams (202) 649-3544 / Stefanie Johnson (202) 649-3030

Safeguard Focuses on Innovative Technology for Industry-Leading Field Services

Posted on February 5, 2020February 5, 2020 by Safeguard

Safeguard in the News
February 3, 2020

Source: HousingWire

Additional Resource:

HousingWire (Safeguard Properties Focuses on Innovative Technologies to Provide Industry-Leading Mortgage Field Services PDF)

Expertise in fulfilling difficult FHA property preservation and conveyance requirements

Safeguard has been a leader in the mortgage field services industry for almost 30 years, building its reputation by serving as true partners to not only its financial clients, but to the local communities they work in as well.

Today, Safeguard leverages its many technological innovations and long history of customer service to provide a full suite of property services on vacant, defaulted and foreclosed properties, whether they are residential, single- and multifamily rental or commercial properties.

The company is dedicated to building and sharing industry best practices to protect the integrity and value of the nation’s housing stock, working on behalf of its clients to comply with all investor and regulatory requirements.

As a result, many of the country’s largest financial institutions rely on Safeguard for property inspections, property preservation, REO maintenance, yard maintenance and snow removal, FHA conveyance management, property registration, estimate and repairs, and code enforcement.

Safeguard’s expertise is especially helpful in fulfilling difficult FHA property preservation and conveyance requirements. The company has developed new ways to improve the FHA post-sale process, adding controls and increased visibility to give clients full case management around any property issues, as well as access to real-time reporting.

One of Safeguard’s hallmarks is using technology to elevate field services to the highest standard.

In recent years, Safeguard has added video and panoramic photo capabilities to its mobile platforms. It also has enhanced its workflow through the new SafeView Field Services platform, including continuous improvements to its client integrated system to allow for full property management.

In addition, Safeguard has examined its business practices and identified key areas of default management that can benefit from re-evaluation, conducting comprehensive reviews of its vendor management workflow and business procedures.

In the process, Safeguard has made strides in perfecting the bidding process, examined ways to avoid FHA reconveyances, implemented new technology to streamline operations and updated its disaster protocols.

Mortgage servicers face multiple challenges trying to stay up to date with frequent changes to industry, investor and insurer guidelines, as well as the critical changes to assure compliance and reduce potential out-of-pocket costs.

Recognizing these challenges, Safeguard started facilitating the yearly Property Preservation Conference 15 years ago to provide relevant, timely and strategic information to clients, vendors and the industry as a whole.

Safeguard is positioned to provide its suite of services – as well as high quality, consistent results – to portfolios of any size in all parts of the U.S., Puerto Rico, the Virgin Islands and Guam.

Alan Jaffa, Chief Executive Officer

Alan Jaffa joined Safeguard in 1995, learning the business from the ground up. He was promoted to COO in 2002 and CEO in 2010. 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. In 2013, Jaffa was named a NEO Ernst & Young Entrepreneur of the Year Award finalist.

Michael Greenbaum, Chief Operating Officer

Michael Greenbaum joined Safeguard in July 2010 as vice president of REO and has continued to take on additional duties and responsibilities, including the role of vice president of operations in 2013 and COO in 2015. Greenbaum is a distinguished graduate of the U.S. Military Academy at West Point, where he majored in quantitative economics.

Joe Iafigliola, Chief Financial Officer

Joe Iafigliola is responsible for oversight of the Control, Quality Assurance, Accounting and Information Security departments. Iafigliola is also a managing director and operating partner with SCG Partners. He 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.