Mortgage Delinquencies Basically Flat in December but Foreclosure Starts Jumped

Industry Update
January 27, 2025

Source: Mortgage Orb

The national mortgage delinquency rate stood at 3.72% in December, a decrease of 0.60% compared with November but up 4.02% compared with December 2023, according to ICE Mortgage Technology’s latest First Look report.

As of the end of the month, there were about 2.016 million mortgages 30 days or more past due but not in foreclosure, a decrease of about 11,000 compared with the previous month but up 108,000 compared with a year ago.

Early-stage delinquencies were down about 3.6% in December compared with November,  while serious delinquencies continued their slow climb – up 5.7% compared to the previous month.

There were about 541,000 loans in serious delinquency, according to the report, an increase of about 29,000 compared with November and an increase of about 66,000 compared with December 2023.

There were about 31,000 foreclosure starts in December, a jump of 50% compared with November and up nearly 30% from a year ago.

The foreclosure pre-sale inventory rate was 0.35%, an increase of 3.72% compared with the month prior and down nearly 11% compared with a year ago.

As of the end of the month, there were about 192,000 properties in the foreclosure pipeline, an increase of about 7,000 compared with the previous month and down about 20,000 compared with a year earlier.

The monthly pre-payment rate was about 0.63%, down 8.43% – on rising rates – compared with November but up about 71% compared with December 2023.

 

For full report, please click the source link above.

 

Genessee County Land Bank Celebrates 1,000 Demolitions in 2024

One Community Update
January 1, 2025

Source: www.abc12.com

The Genesee County Land Bank marked two decades of work in revitalizing vacant and underused property in 2024.

The agency is Michigan’s first land bank, originally founded in 2002 as the Genesee County Land Reutilization Council. Two years later, it became the Genesee County Land Bank, embarking on a mission to tackle blight.

Michael Freeman, the land bank’s executive director, emphasized the organization’s commitment to recovery and renewal.

“While we have lived in crisis, we’re coming out of that. We always have to be mindful of that. We can and will be better,” he said.

In the past year alone, Freeman said the land bank has made significant strides, demolishing or initiating the demolition of over 1,000 blighted structures.

“These are properties that when people left our community, they didn’t take them with them,” Freeman said, highlighting the importance of addressing these neglected sites.

According to the land bank’s annual report, 9,000 blighted structures have been demolished and $165 million has been secured for blight elimination over the last 20 years. More than 10,000 properties have been sold for reuse.

However, Freeman acknowledged the growing challenges for the land bank to continue demolishing and rehabilitating vacant structures.

“Now the cost of materials and labor has gone up exponentially, so that is what we are dealing with,” he said. “That is one of the big challenges.”

The land bank’s community-focused approach includes programs like Clean & Green, which has engaged over 800 volunteers in revitalization efforts.

“We are there to support neighborhoods,” Freeman said. “They have great dreams and a lot of passion for their communities. We want to be there and support them.”

Looking ahead, the land bank remains dedicated to reducing blight, with funding for demolition projects extending through 2026. Freeman expressed enthusiasm about the future.

“It’s the putting back, which I am more excited about,” he said. “But we do have to get rid of the blight first. That is one of the most critical things.”

As the real estate market and economy evolve, Freeman sees new opportunities for the land bank to contribute to housing solutions amid Michigan’s ongoing housing crisis.

“In the new year, we hope to address the best way to use the cleaned-up and now vacant lots,” he said.

The land bank also has plans for various types of multi-family housing and innovative preventative measures. However, Freeman also stressed the need for a comprehensive approach to address blight.

“What we are up against is that while we deal with the public side of blight, we need to create systems to hold people accountable on the private side to improve their properties and not just let them sit and languish,” he said.

Land bank crews will continue cleaning up illegal dumping sites in 2025. This is part of a three-year effort funded by the Centers for Disease Control and Prevention, which has led to the first robust study of illegal dumping nationwide.

As the Genesee County Land Bank celebrates its 20th anniversary, its leaders remain committed to fostering a vibrant and sustainable community, ensuring that the lessons of the past pave the way for a brighter future.

 

For full report, please click the source link above.

Monroe County Addresses Housing Issues with Creation of Land Bank

One Community Update
January 22, 2025

Source: Rochester Business Journal

Monroe County will use $1 million in federal American Rescue Fund Act funding to create a land bank.

The Monroe County Land Bank Corp. (MCLBC) will work to eliminate unsafe conditions caused by vacant and abandoned properties while creating affordable homeownership in the 29 suburban and rural communities within the county.

Through the MCLBC, distressed properties will be acquired, rehabilitated and then sold.

“Vacant properties diminish the quality of life in our neighborhoods, posing risks to public safety, health and housing stability,” County Executive Adam Bello said in a news release.

Kevin Purcell, senior attorney at Empire Justice Center, has been named chair of the Monroe County Land Bank.

“Across New York State, land banks have proven to be a valuable resource to address vacant homes that have fallen into disrepair,” Purcell said. “The Monroe County Land Bank can and will play a role in helping return some of these properties back into productive use and therefore help alleviate the housing shortage our community faces.”

There are 29 land banks in the state, including the Rochester Land Bank Corp.

“Suburban and rural communities have long desired assistance with zombie properties, which pose significant health and safety risks to neighborhoods,” County Legislature president Yversha Roman said.

“The create of the Monroe County Land Bank is an innovative and practical way to resolve aspects of the housing supply shortage and affordability by rehabilitating abandoned properties and providing potential first-time homeowners access to quality properties without the significant financial hindrances they would experience elsewhere.”

 

For full report, please click the source link above.

Over $1.3 Million Awarded to Build and Rehab Homes, Tear Down Others in Allegany County

One Community Update
January 24, 2025

Source: The Evening Tribune

The Allegany County Land Bank now has more financial resources than ever before in its quest to improve the local housing stock.

The Lank Bank has been awarded a $1.365 million grant from New York State Homes and Community Renewal (HCR), the non-profit announced Thursday.

The grant will be used to enhance the local housing stock, eliminate blight through strategic demolitions, and partner with local organizations to create affordable housing for residents. The grant marks the largest award the Allegany County Land Bank has ever received through the state’s Land Bank Initiative Program.

Jason Isaman, Executive Director of the Allegany County Land Bank, said the grant represents a “significant investment” in the county.

“This award allows us to make even greater strides in eliminating blight, stabilizing neighborhoods, and creating long-term housing solutions in collaboration with our local partners,” Isaman said in a release. “The impact of this funding will be felt throughout Allegany County for years to come.”

How Land Bank funding will be used in Allegany County

The non-profit said the funding from the Land Bank Initiative Program will be utilized to further three goals in Allegany County:

Remove blight through strategic demolitions, targeting unsafe and abandoned buildings that negatively affect the community.

Support local housing partners, including Friendship Revitalization and Economic Development, Andover Historic Preservation Corp, and Genesee Valley Habitat for Humanity, to rehabilitate and redevelop properties for affordable, attainable housing.

Strengthen local housing stock, making homes more stable, accessible, and sustainable for families across Allegany County.

What is the grant’s impact on Allegany County housing?

Allegany County Land Bank is dedicated to revitalizing vacant, abandoned, and tax-delinquent properties in Allegany County. It works with local partners to stabilize homes for rehabilitation, remove blight, and promote the creation of affordable housing options.

The Land Bank netted two earlier grants that supported the stabilization of homes for rehabilitation and the demolition of dilapidated properties, including one in Almond this winter.

The $1.365 million grant is nearly three times bigger than the Land Bank’s previous largest award. The Land Bank said the funding will position the non-profit to expand its efforts to include additional new home development, strategic demolitions and rehabilitation projects in partnership with local organizations.

“Today’s $1.3 million grant builds on two prior HCR Land Bank Initiative awards and will allow additional rehabilitation projects that improve neighborhoods for Allegany County residents,” said HCR Commissioner RuthAnne Visnauskas.

“Thank you to the Allegany County Land Bank Corporation for their partnership and to Governor Hochul for her commitment to investing in communities, increasing housing supply, and improving affordability for New Yorkers.”

 

For full report, please click the source link above.

California Wildfires Update: Containment and Evacuation Information

Disaster Alert
January 23, 2025

Source: Cal Fire

Below is the latest information regarding containment, evacuations areas, and more for the Hughes Fire, the Palisades Fire, and the Eaton Fire.  The Hurst Fire was reported to be 100% contained as of 1/16/25 and evacuation orders have been lifted.

As of this afternoon, Cal Fire reports 50,683 acres burned, 28 fatalities and over 16,000 structures destroyed.

 

Palisades Fire:

23,448 Acres

72% Containment

904 Structures Damaged (Residential, Commercial, and Other)

6,770 Structures Destroyed (Residential, Commercial, and Other)

Areas in red remain under evacuation order; areas in light yellow are under evacuation warning.

 

Eaton Fire:

14,021 Acres

95% Containment

1,073 Structures Damaged (Residential, Commercial, and Other)

9,418 Structures Destroyed (Residential, Commercial, and Other)

As of this afternoon (1/23) all evacuation orders have been lifted for the area.

 

Hughes Fire:

10,176 Acres

14% Containment

The Hughes Fire began yesterday, 1/22/25 around 11:00 am PST.  As the situation is still developing, we do not have damage information at this time.  The Hughes Fire is affecting areas of both Los Angeles County and Ventura County.

Areas in red are under evacuation orders; areas in light yellow are under evacuation warning.

 

 

Click here for a list of zip codes that may be associated with affected areas, designated by fire.

 

We will continue to update as additional information is acquired.

To order an inspection, please log-in to your SafeView Access account.

 

To read the full articles, please click the source links above.

Share of Mortgage Loans in Forbearance Decreases Slightly to .47% in December

Industry Update
January 21, 2025

Source: Mortgage Bankers Association

The Mortgage Bankers Association’s (MBA) monthly Loan Monitoring Survey revealed that the total number of loans now in forbearance decreased by 3 basis points from 0.50% of servicers’ portfolio volume in the prior month to 0.47% as of December 31, 2024. According to MBA’s estimate, 235,000 homeowners are in forbearance plans. Mortgage servicers have provided forbearance to approximately 8.5 million borrowers since March 2020.

The share of Fannie Mae and Freddie Mac loans in forbearance decreased 2 basis points to 0.19% in December 2024. Ginnie Mae loans in forbearance decreased by 4 basis points to 1.07%, and the forbearance share for portfolio loans and private-label securities (PLS) decreased 2 basis points to 0.40%.

“The overall mortgage forbearance rate decreased slightly in December as some borrowers got back on track following last fall’s severe weather in the Southeast,” said Marina Walsh, CMB, MBA’s Vice President of Industry Analysis. “Even with the slight decrease, the level of forbearance is higher than it was six months ago across all loan types and the performance of servicing portfolios and loan workouts has weakened.”

Added Walsh, “At year end, almost 43% of borrowers in forbearance were there due to a natural disaster.  Given the disruption and devastation caused by the California wildfires, that share will likely move higher in the months ahead, as homeowners turn to forbearance to allow time to navigate their recovery process.

 

For full report, please click the source link above.

 

HUD Updates Options to Help Homeowners Keep Their Homes

Industry Update
January 16, 2025

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

The U.S. Department of Housing and Urban Development (HUD), through its Federal Housing Administration (FHA), announced an updated set of permanent options for mortgage servicers to help borrowers with FHA-insured single-family mortgages keep their homes or otherwise avoid foreclosure when they fall behind on their mortgage payments. The options, commonly referred to as FHA’s loss mitigation “waterfall,” builds off and update the temporary options FHA implemented during the COVID-19 pandemic based on FHA and mortgage servicers’ experience in helping more than two million struggling borrowers stay in their homes over the last four years. Servicers must implement and make these options available to borrowers beginning February 2, 2026. FHA’s current, temporary COVID-19 options will remain in place through February 1, 2026.

“HUD is focused on helping first time homeowners, and we are also focused on helping homeowners keep their homes,” said HUD Agency Head Adrianne Todman. “The updates to our home retention options build upon options we created during the pandemic to help borrowers.”

“The updates we’re announcing today are based on solutions that have proven to be effective in helping struggling homeowners avoid foreclosure and reduce losses to the Mutual Mortgage Insurance Fund,” said Federal Housing Commissioner Julia Gordon. “We are confident that this updated, permanent set of options will help FHA sustain homeownership during future challenging times.”

FHA’s permanent loss mitigation options will be available through mortgage servicers for borrowers who fall behind on their mortgage payments regardless of the reason for their hardship. The updated tools are structured to meet a variety of borrower needs under the following categories:

Early Default Intervention: For borrowers who begin to experience problems with making mortgage payments, servicers may provide a repayment plan to bring the mortgage current or provide a forbearance period – a temporary pause or reduction in mortgage payments – incrementally for up to 12 months. For borrowers impacted by natural disasters, a special disaster forbearance option provides additional flexibilities.

Home Retention Options: Depending on a borrower’s financial situation, servicers are provided with loss mitigation tools that will help bring the mortgage current so the borrower can retain their home. Options include FHA’s standalone partial claim or a standalone loan modification that offers payment reduction for borrowers who can resume making their existing monthly mortgage payments. For those borrowers who cannot afford their current monthly mortgage payment, additional options that target a 25 percent reduction in the Principal and Interest portion of the payment – a standalone loan modification, a combination loan modification with a partial claim, and Payment Supplement – are available.

Home Disposition Options: Where borrowers who, after exhausting all other home retention options, cannot afford to keep their homes, servicers will provide options that will help these borrowers avoid foreclosure, including a pre-foreclosure sale and a deed-in-lieu of foreclosure.

“The updated waterfall is based upon the successful outcomes we’ve achieved for borrowers by continually evolving our loss mitigation options throughout the pandemic. The waterfall also adds additional guardrails to reduce risk and losses to HUD,” said Deputy Assistant Secretary for Single Family Housing Sarah Edelman. “We attribute our loss mitigation success in part to the regular ongoing dialogue we’ve maintained with industry and consumer group stakeholders throughout the pandemic and beyond to share lessons learned on how to best help those who are struggling financially.”

FHA is also announcing an additional 60-day feedback period for its proposed Equity Saver Sale. The Equity Saver Sale would be a future addition to FHA’s Home Disposition Options and would permit borrowers to list and sell homes that have retained equity while the mortgage servicer pauses foreclosure. The proposal is posted on FHA’s Single Family Drafting Table web page. FHA is soliciting feedback on this proposal through March 17, 2025.

 

 

For full report, please click the source link above.

 

Foreclosure Filings for All 50 States in December 2024

Industry Update
January 17, 2025

Source: ATTOM

In December 2024, the U.S. housing market experienced a slight decline in foreclosure activity with 28,632 U.S. properties with foreclosure filings – marking a 3% decline from the previous month and 6% decline from a year ago. The U.S. housing market recorded foreclosure filings on one in every 4,922 properties, reflecting a slight easing in foreclosure activity. Foreclosure starts totaled 19,376 properties, down 4% from the previous month and 5% from December 2023, while completed foreclosures decreased by 4% monthly and 16% annually. These trends highlight modest changes in foreclosure activity that may be shaped by evolving economic conditions.

Rob Barber, CEO of ATTOM, observed that the continued decline in foreclosure activity throughout 2024 suggests a housing market that may be stabilizing, despite persistent economic uncertainties. He noted that this year’s data indicates foreclosure trends potentially returning to more predictable levels, offering some clarity for industry professionals, investors, and homeowners. While foreclosure filings remain an essential metric for assessing market health, Barber highlighted that current trends may reflect a more balanced landscape, influenced by prudent lending practices and resilient homeowners.

See the full list here.

 

For full report, please click the source link above.

 

Bill Pulte Trump’s Pick for FHFA Director

Industry Update
January 17, 2025

Source: National Mortgage Professional

In a Thursday post on his social media network Truth Social, President-elect Donald Trump announced his plan to nominate Bill Pulte as director of the Federal Housing Finance Agency (FHFA).

“Bill needs no formal introduction to the Great Citizens of our Country,” Trump wrote, “because they have seen, and many have experienced, his philanthropy firsthand.”

The founder and CEO of the private equity group Pulte Capital Partners, LLC, and former director of PulteGroup, Inc., Pulte has been a vocal Trump supporter, much like Trump’s nominee to lead the U.S. Department of Housing and Urban Development (HUD), Scott Turner.

President and CEO of the Mortgage Bankers Association (MBA), Bob Broeksmit, congratulated Pulte on the nomination in a press release.

“We look forward to working with him and the FHFA staff on policies and programs that boost housing supply and create affordable opportunities for our nation’s homebuyers and renters,” Broeksmit said, “while protecting taxpayers and ensuring a robust secondary mortgage market and Federal Home Loan Bank system for single-family and multifamily lenders.”

As FHFA director, Pulte will oversee the conservatorship of the government-sponsored enterprises (GSEs), Fannie Mae and Freddie Mac. Plans to end the conservatorship, initiated during the first Trump administration, are anticipated to be successful during the next one.

Former FHFA director Sandra Thompson recently announced her resignation effective January 19th, 2025, one day before Trump assumes office.

 

For full report, please click the source link above.

 

CoreLogic Estimates the Eaton and Palisades Fires are Causing Devasting Initial Property Losses Estimated to be Between $35-45 Billion

Industry Update
January 16, 2025

Source: CoreLogic

CoreLogic®, a leading global property information, analytics and data-enabled solutions provider, today announced preliminary residential and commercial loss estimates for the Eaton and Palisades Fires in Los Angeles, California. According to this new data analysis, ongoing losses from the Los Angeles wildfires are estimated to be between $35 to $45 billion, as both fires are less than 50% contained as of Thursday afternoon. CoreLogic will provide final insured loss estimates once the fires have been fully contained.

This analysis of both residential and commercial properties accounts for both fire and smoke damage as well as demand surge, debris removal, clean up and Additional Living Expenses (ALE). The majority of  losses are to residential properties. Many of the potentially impacted properties are high value homes, so even moderate damage from the fires or smoke could result in costly claims.

“The destruction caused by these fires is anticipated to be the most expensive in the state’s history with effects on the insurance industry that will persist into the future. This event highlights the paramount challenge for homeowners and the insurers that support them – the increasing density of homes and properties near the wildlife-urban-interface,” said Tom Larsen, Senior Director of CoreLogic Insurance Solutions. “Los Angeles is a resilient community, and as they look to rebuild it will be essential to design or redesign with mitigation practices in mind, so an event of this magnitude never happens again.”

CoreLogic is supporting recovery efforts for people affected by the wildfires through a donation to the Red Cross, enabling them to prepare for, respond to and help people recover from these disasters. To join us, visit the Red Cross website.

Please visit the CoreLogic natural hazard risk information center, CoreLogic Hazard HQ Command Central™ to get access to the most up-to-date wildfire data and see reports from previous catastrophes.

 

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