Page 29 – Safeguard Properties

Mortgage Delinquencies Increase Slightly in the First Quarter of 2025

Posted on May 15, 2025May 15, 2025 by Safeguard

Industry Update
May 13, 2025

The delinquency rate for mortgage loans on one-to-four-unit residential properties increased to a seasonally adjusted rate of 4.04 percent of all loans outstanding at the end of the first quarter of 2025, according to the Mortgage Bankers Association’s (MBA) National Delinquency Survey.

The delinquency rate was up 6 basis points from the fourth quarter of 2024 and up 10 basis points from one year ago. The percentage of loans on which foreclosure actions were started in the first quarter rose by 5 basis points to 0.20 percent.

“There were mixed results for mortgage performance in the first quarter of 2025 compared to the end of 2024. Delinquencies on conventional loans increased slightly, while mortgage delinquencies on FHA and VA loans declined,” said Marina Walsh, CMB, MBA’s Vice President of Industry Analysis. “Foreclosure inventories increased across all three loan types, and particularly for VA loans. Despite certain segments of borrowers having difficulty making their mortgage payments, the overall national delinquency and foreclosure rates remain below historical averages for now.”

Added Walsh, “The percentage of VA loans in the foreclosure process rose to 0.84 percent, the highest level since the fourth quarter of 2019. The increase from the previous quarter marks the largest quarterly change recorded for the VA foreclosure inventory rate since the inception of MBA’s survey in 1979.”

Walsh noted that a voluntary VA foreclosure moratorium was in effect through the end of 2024 to allow time to implement the Veterans Affairs Servicing Purchase (VASP) Program. That program has since ended without a replacement loss mitigation option approved by Congress. Further increases in the foreclosure rate could result if economic conditions worsen and loan workout options are unavailable.

Key findings of MBA’s First Quarter of 2025 National Delinquency Survey:

Compared to last quarter, the seasonally adjusted mortgage delinquency rate increased for all loans outstanding. By stage, the 30-day delinquency rate increased 11 basis points to 2.14 percent, the 60-day delinquency rate decreased 3 basis points to 0.73 percent, and the 90-day delinquency bucket decreased 2 basis points to 1.17 percent.

By loan type, the total seasonally adjusted delinquency rate for conventional loans increased 8 basis points to 2.70 percent over the previous quarter. The total FHA seasonally adjusted delinquency rate decreased 41 basis points to 10.62 percent, and the total VA seasonally adjusted delinquency rate decreased 7 basis points to 4.63 percent.

On a year-over-year basis, total mortgage delinquencies increased for all loans outstanding. The delinquency rate increased 8 basis points for conventional loans, increased 23 basis points for FHA loans and decreased 3 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 first quarter was 0.49 percent, up 4 basis points from the fourth quarter of 2024 and 3 basis points higher than one year ago.

The non-seasonally adjusted seriously delinquent rate, the percentage of loans that are 90 days or more past due or in the process of foreclosure, was 1.63 percent. It decreased 5 basis points from last quarter and increased 19 basis points from last year. The seriously delinquent rate decreased 3 basis points for conventional loans, decreased 14 basis points for FHA loans, and decreased 7 basis points for VA loans from the previous quarter. Compared to a year ago, the seriously delinquent rate increased 5 basis points for conventional loans, increased 80 basis points for FHA loans and increased 50 basis points for VA loans.

The five states with the largest year over year increases in their overall delinquency rate were: Florida (46 basis points), South Carolina (26 basis points), Georgia (25 basis points), Delaware (25 basis points), and Wyoming (24 basis points).

For the purposes of the survey, MBA asks servicers to report loans in forbearance as delinquent if the payment was not made based on the original terms of the mortgage.

For full report, please click the source link above.

FEMA Major Disaster Declaration – Arkansas Severe Storms and Tornadoes

Posted on May 14, 2025May 15, 2025 by Safeguard

FEMA Alert
May 8, 2025

FEMA has issued a Major Disaster Declaration for the state of Arkansas to supplement state, tribal, and local recovery efforts in areas affected by severe storms and tornadoes from March 14-15, 2025. The following counties have been approved for assistance:

Individual Assistance:

Greene
Hot Spring
Independence
Izard
Jackson
Lawrence
Randolph
Sharp
Stone

Arkansas Severe Storms and Tornadoes (DR-4865-AR)

Map of Affected Area

President Donald J. Trump Approves Major Disaster Declaration for Arkansas

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

STL County Land Bank Targets Abandoned Properties

Posted on May 9, 2025 by Safeguard

One Community Update
May 2, 2025

Source: www.stlamerican.com

A new land bank will be an investment in St. Louis County’s future according to County Executive Sam Page.

Sponsored by Council Chair Rita Days and Councilwoman Shalonda Webb, Page signed Bill No. 57 on Monday, formally establishing the Saint Louis County Land Bank. The inaugural county agency of this type has a goal of restoring vacant and tax-delinquent properties to productive use.

“The Saint Louis County Land Bank restores hope and opportunity for our communities,” said Dr. Page in a release.

“Vacant lots and abandoned buildings hurt everyone. This land bank will help us turn eyesores into assets – creating safe, affordable housing, vibrant green spaces, and stronger neighborhoods for generations to come.”

According to the County, it is home to thousands of vacant, abandoned, and tax-delinquent properties, with many long trapped in “legal limbo.” Many of the properties are in north St. Louis County.

“The new land bank offers a powerful, targeted tool to reclaim, restore, and redevelop these properties, strengthening neighborhoods and supporting sustainable growth,” according to Page.

Tony L. Smee, Department of Revenue director, and his office will identify properties eligible for acquisition and provide a list to the land bank board.

Properties will then be “strategically” selected and offered clean titles through court-supervised sales.

The initiative is bolstered by a $1 million investment in Rams settlement funding and sustained by three revenue streams. This, according to the county, [will give] buyers legal certainty and confidence.”

A land back board will be appointed by the County Executive, County Council, and the Municipal League of Metro St. Louis. House Bill 2062, which was passed during the 2024 state legislative session, expanded local authority to create land banks.

St. Louis County is the first jurisdiction in the state to enact a land bank agency under the new statute.

A group of diverse partners, the St. Louis County Land Bank Coalition, worked for passage of the bill last year.

The partners included former state Rep. Kevin Windham, Legal Services of Eastern Missouri, the Municipal League of Metro St. Louis, Beyond Housing, the St. Louis Economic Development Partnership, The Housing Partnership, Spanish Lake Community Development Corporation, The Center for Community Progress, and others.

“I’ve watched homes in our community sit empty for years—windows shattered, roofs caved in, and hope slipping through the cracks,” said Windham, who originally elected from the state’s 85th House district.

After redistricting in 2022, he was elected from the 74th district, which includes 22 municipalities and portions of unincorporated St. Louis County. Among the communities are Cool Valley, Wellston, Vinita Park and Pasadena Hills.

“The unanimous council vote is more than just policy, it’s a promise to neighborhoods like mine that we haven’t been forgotten. This land bank ordinance is a step toward restoration, toward dignity, and toward the future our communities deserve.”

St. Louis Realtors President Stacey Sanders said, called the bill and its signing, “a historic moment for St. Louis County.

“The creation of this land bank adds a critical tool to transform blighted areas into opportunity. Helping to reclaim properties, stabilize neighborhoods, and open the door to new investment. We are proud to have fueled this effort from the beginning,” she said.

According to the County, the inaugural Land Bank is unique because it can deliver:

Selectivity – “The County chooses which properties to take—not everything by default.”

Clean titles – “Court-supervised sales mean no legal surprises for future buyers.”

Funding – It’s built to last, with three revenue streams plus an initial $1 million investment.

The banks will also help create safer neighborhoods by reducing blight and vacancy, create opportunities for new homeowners, local developers, and nonprofits, and create a fair and transparent system designed with input from the public.

“Together, we worked tirelessly to ensure that local leaders have the tools they needed to revitalize blighted properties and build a stronger future for all residents of St. Louis County,” said Sanders of the Coalition.

For full report, please click the source link above.

Newark Land Bank Breaks Ground on New Single-Family Residence

Posted on May 9, 2025 by Safeguard

One Community Update
May 6, 2025

Source: www.tapinto.net

Newark Land Bank, a division of Invest Newark that is focused on boosting homeownership, broke ground on its first ground-up residential construction project at 113 Ridgewood Ave. on Monday morning.

Breaking ground on this home marks the beginning of a larger effort to construct seven new single-family homes across Newark by 2026, a move to expand homeownership opportunities for city families.

Local developer Three Brothers Construction will construct a three-story, single-family residence at the Ridgewood Avenue site, which will feature four bedrooms, 3.5 baths and a private garage.

“This is a turning point for our city in its continual, consistent commitment to create affordable housing for our community. Our goal is enormous but, as we witness today, it will be met – one space, one family, one contractor at a time,” said Newark Mayor Ras J. Baraka. “In a few months, someone will receive the key to their new home here – but the real key to this dream is our collaboration with partners and the vision we share.”

The Newark Land Bank was established in 2019 and is operated by Invest Newark. The first land bank in New Jersey, it acquires, manages and redevelops vacant, abandoned and tax-delinquent properties across Newark.

The Newark Land Bank’s mission is to reduce blight, expand homeownership and support sustainable development.

To date, the Newark Land Bank has sold 76 properties throughout the city’s five wards, including eight through the Housing Choice Voucher Conversion Program.

In addition to 113 Ridgewood Ave., Newark Land Bank plans to break ground on new homes at the following locations: 29-31 Winans Ave., 296 S. 7th St., 298 S. 7th St., 63 Montgomery Ave., 299 Chadwick Ave. and 59 Millington Avenue.

The target market for these homes is income-qualified, first-time homebuyers.

The new home at 113 Ridgewood Ave. is designated for buyers earning 80% of the Area Median Income (AMI) or below.

The Newark Metro Area Housing and Urban Development (HUD) annual income limits in 2024 show that 80% AMI is $73,040 for a one-person household, $83,440 for a two-person household and $93,840 for a three-person household.

Properties will be listed for sale on the Newark Land Bank website once construction is complete. The homes are then sold through a lottery-based application process to ensure fair access.

Invest Newark selected Newark-based contractor Three Brothers Construction, a family-run, minority-owned firm, to construct the single-family residence on Ridgewood Avenue.

Marcus Randolph, president and CEO of Invest Newark, and Gregory Good, chief real estate development officer and director of asset management at Invest Newark, joined Three Brothers Construction owner Gilbert Gomez on Monday to mark the start of construction.

“Transforming a vacant lot into a beautiful home for a family is a powerful example of how we turn vision into action,” Randolph said.

Good added that Three Brothers Construction represents “everything we want to see more of in Newark.”

“This project isn’t just an opportunity for our company, it is a win for the whole community,” Gomez said. “We’re proud to help build something that will make a real difference for Newark families. We believe in this city and what we can achieve together as a community.”

For full report, please click the source link above.

Rockford City Cracks Down on Vacant Properties with New Data Integration

Posted on May 9, 2025 by Safeguard

One Community Update
May 8, 2025

Source: Yahoo! News

The City of Rockford announced Thursday it is expanding its efforts to proactively identify vacant properties.

The City said it would be using a data integration and insights platform, called Tolemi, to track vacant and foreclosing properties to flag potentially vacant homes before they become a nuisance to neighbors and drag down property values.

“The standard process for identifying vacant and abandoned properties has always been reactive – waiting for neighbor complaints about a property not being maintained or left vacant. This method often delays intervention, allowing properties to deteriorate further and negatively impact surrounding homes and neighborhoods,” the City said in a release.

Flagged properties will be inspected by the City’s Vacant Properties Team, who will work to locate the owner, assess the property’s condition, and work to resolve code violations to return the property to active use.

As an example, the City said, “[A] property on Arden Ave had been vacant since 2010, with the previous owners leaving all personal belongings behind. Despite years of complaints from neighbors, the owners maintained just enough exterior upkeep and paid property taxes to avoid major code violations. After continued concerns from residents and aldermen, the City enforced its vacant property ordinance. The City contacted the absentee owners, who confirmed they had no intention of returning. An inspection revealed major interior damage from a roof leak and lack of heat. Per ordinance, we requested a remediation plan and timeline. Ultimately, the owners chose to sell to a new buyer, who is now actively rehabbing the home for resale. After more than 15 years of vacancy, the ordinance finally enabled meaningful progress.”

For full report, please click the source link above.

Foreclosure Auction Volume Increases 4 Percent Annually to Six-Quarter High in Q1 2025

Posted on May 7, 2025 by Safeguard

Industry Update
April 29, 2025

Source: Auction Market Dispatch

Foreclosure auction volume surged in the first quarter of 2025, marking a sharp reversal from recent lows. Completed foreclosure auctions jumped 20 percent from the prior quarter and 4 percent year-over-year to reach a six-quarter high, propelled in part by a January spike to a 21-month high. While volume dipped in February, March closed strong with a 5 percent annual gain.

Foreclosure auction volume was up across all loan types except for loans insured by the U.S. Department of Agriculture (USDA). Loans insured by the U.S. Department of Veterans Affairs (VA) led the way with a 104 percent annual increase. The VA foreclosure auction spike came after a nationwide foreclosure moratorium on VA loans expired at the end of 2024.

Scheduled foreclosure auctions rose 14 percent from the previous quarter to a five-quarter high — a potential harbinger of continued elevated completions into Q2. Despite the gains, total completed auction volume remains at just 49 percent of its pre-pandemic level.

Demand signals were less decisive. Although activity started strong in January, it softened notably in February and March, keeping the overall Q1 sales rate essentially flat quarter-over-quarter and down from a year earlier. Meanwhile, buyer pricing behavior weakened — a trend more pronounced as the quarter progressed, especially among foreclosure auction participants.

Auction Demand Mixed as Buyers Pulled Back Mid-Quarter

The foreclosure auction sales rates— the share of properties available at auction that sold to third-party buyers — began Q1 on an upswing, reaching an eight-month high in January, up 1 percent year-over-year. However, February saw demand drop to a 26-month low, with rates falling 7 percent annually. March showed a partial recovery but remained 7 percent below prior-year levels.

REO (Real Estate Owned) auction activity was modestly up from the previous quarter, with bidders per asset increasing 2%. But year-over-year comparisons remained negative across all three months, culminating in a 16% annual decline.

Half of 76 major metro areas analyzed posted year-over-year declines in foreclosure auction demand (sales rate), including Chicago (down 16 percent), Houston (down 42 percent), Dallas-Fort Worth (down 19 percent), St. Louis (down 17 percent), and Atlanta (down 14 percent).

On the other end of the spectrum, 37 markets posted annual gains. Notable increases included New York (up 19 percent), Philadelphia (up 10 percent), Detroit (up 3 percent), Washington, D.C. (up 8 percent), and Minneapolis-St. Paul (up 4 percent).

Among top-performing metros in Q1 2025 in terms of foreclosure auction sales rate were Richmond, Virginia; Milwaukee; Hartford, Connecticut; Rockford, Illinois; and Providence, Rhode Island. The weakest markets included Minneapolis-St. Paul; Little Rock, Arkansas; Beaumont and Corpus Christi in Texas; and Mobile, Alabama.

Buyer Caution Evident as Price Demand Slips Across Most Markets

Price demand — the amount buyers at auction are willing to pay relative to estimated after-repair value — flattened in Q1 2025 and trailed prior-year benchmarks. Foreclosure auction price demand held steady sequentially at 56.7 percent, up slightly from 55.9 percent in Q4 2024 but down from 59.0 percent a year earlier.

Monthly performance told a clearer story of decline in foreclosure auction price demand. The metric fell 2 percent year-over-year in January, 4 percent in February, and 6 percent in March.

REO price demand followed a similar arc — rising 3 percent quarterly and 1 percent annually to 57.9 percent — but with monthly softening. After starting strong with an 8 percent YoY jump in January, gains flattened in February and turned to a 4 percent decline in March.

Of the 76 markets analyzed, 59 percent saw annual declines in foreclosure auction price demand in Q1 2025. Those included Chicago (down 4 percent), New York (down 1 percent), Houston (down 14 percent), Philadelphia (down 7 percent), and Dallas (down 8 percent).

Some bright spots emerged: 41 percent of markets posted year-over-year increases in foreclosure auction price demand, led by Minneapolis-St. Paul (up 57 percent), New Orleans (up 7 percent), Baton Rouge (up 5 percent), Baltimore (up 2 percent), and Pittsburgh (up 2 percent).

Foreclosure Volume Recovers from Lows; State-Level Variation Remains Wide

Foreclosure auction completions surged 20 percent quarter-over-quarter to their highest level since Q3 2023. The total volume recovered to 49 percent of pre-pandemic (Q1 2020) levels, up from 41 percent in Q4 2024. States seeing the most pronounced annual increases were Arizona (up 151 percent), Utah (up 100 percent), New Hampshire (up 80 percent), Kansas (up 74 percent), and Texas (up 73 percent).

Trends among top-volume states were uneven, with Texas, Illinois and Michigan posting an annual increase, and New York and Ohio posting an annual decrease.

Among states with above-100 percent foreclosure auction volume recovery relative to pre-pandemic norms were Connecticut, Colorado, Wyoming, Alaska, Louisiana, South Dakota, Minnesota, Kentucky and Utah.

Scheduled foreclosure auctions — a leading indicator of future volume — climbed 14 percent quarterly to 60 percent of pre-pandemic levels, the highest since Q4 2023.

REO supply also rose — up 2 percent quarterly and 3 percent annually — reaching a six-quarter high, though still just 39 percent of pre-pandemic levels.

Bid-Ask Spread Signals Buyer-Seller Gap Persists

The gap between what buyers are willing to pay and what sellers are willing to accept — known as the bid-ask spread — showed diverging patterns between auction types in Q1 2025.

Foreclosure Auctions: The spread held steady at 7 percentage points in Q1 2025, the same as Q4 2024 but more than double the 3-point spread a year earlier. The spread widened month-by-month, from 6 points in January to 7 points in February and March, driven in part by an uptick in seller pricing (up 100 basis points compared to the previous quarter).

REO Auctions: The spread narrowed to 10 percentage points in Q1 2025 from 12 points in the previous quarter, thanks to stronger buyer pricing and only minimal upward movement in seller pricing (up 10 bps compared to the previous quarter). The spread remained flat compared to a year ago.

For full report, please click the source link above.

Fannie and Freddie: Single Family Serious Delinquency Rates Decreased in March

Posted on May 7, 2025 by Safeguard

Industry Update
May 2, 2025

Source: CalculatedRisk Newsletter

Freddie Mac reported that the Single-Family serious delinquency rate in March was 0.59%, down from 0.61% February. Freddie’s rate is up year-over-year from 0.52% in March 2024, however, this is close to the pre-pandemic level of 0.60%.

Freddie’s serious delinquency rate peaked in February 2010 at 4.20% following the housing bubble and peaked at 3.17% in August 2020 during the pandemic.

Fannie Mae reported that the Single-Family serious delinquency rate in March was 0.56%, down from 0.57% in February. The serious delinquency rate is up year-over-year from 0.51% in March 2024, however, this is below the pre-pandemic lows of 0.65%.

The Fannie Mae serious delinquency rate peaked in February 2010 at 5.59% following the housing bubble and peaked at 3.32% in August 2020 during the pandemic.

These are mortgage loans that are “three monthly payments or more past due or in foreclosure”. Mortgages in forbearance are being counted as delinquent in this monthly report but are not reported to the credit bureaus.

For Fannie, by vintage, for loans made in 2004 or earlier (1% of portfolio), 1.41% are seriously delinquent (down from 1.44% the previous month).

For loans made in 2005 through 2008 (1% of portfolio), 2.01% are seriously delinquent (down from 2.07%).

For recent loans, originated in 2009 through 2023 (98% of portfolio), 0.50% are seriously delinquent (down from 0.52%). So, Fannie is still working through a handful of poor performing loans from the bubble years.

For full report, please click the source link above.

FEMA Fire Management Assistance Declaration – North Carolina Sunset Drive Fire

Posted on May 6, 2025 by Safeguard

FEMA Alert
May 3, 2025

FEMA has issued a Fire Management Assistance Declaration for the state of North Carolina to supplement state, tribal and local recovery efforts in areas affected by the Sunset Drive Fire on May 2, 2025. The following counties have been approved for assistance:

Public Assistance:

Brunswick

North Carolina Sunset Drive Fire (FM-5582-NC)

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 Fire Management Assistance Declaration – New Jersey Jones Road Fire

Posted on April 30, 2025 by Safeguard

FEMA Alert
April 24, 2025

FEMA has issued a Fire Management Assistance Declaration for the state of New Jersey to supplement state, tribal and local recovery efforts in areas affected by the Jones Road Fire on April 22, 2025. The following counties have been approved for assistance:

Public Assistance:

Ocean

New Jersey Jones Road Fire (FM-5581-NJ)

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 – Kentucky Severe Storms, Straight-line Winds, Tornadoes, Flooding, Landslides, and Mudslides

Posted on April 30, 2025May 19, 2025 by Safeguard

FEMA Alert
April 24, 2025

***Last Update: 5/19/25***

FEMA has issued a Major Disaster Declaration for the state of Kentucky to supplement state, tribal, and local recovery efforts in areas affected by severe storms, straight-line winds, tornadoes, flooding, landslides, and mudslides beginning April 2, 2025 and continuing. The following counties have been approved for assistance:

Individual Assistance: