Page 3 – Safeguard Properties

Capital Region Land Bank Receives $2M State Grant

Posted on December 18, 2024 by Safeguard

One Community Update
November 27, 2024

The Capital Region Land Bank was recently awarded a $2 million state grant that will allow the organization to continue its work tackling blight throughout Schenectady County and the nearby city of Amsterdam.

The award from the state department of Homes and Community Renewal brings the nonprofit’s total received in grant funding since its inception a decade ago to $12 million.

Richard Ruzzo, chair of the Land Bank and a member of the Schenectady County Legislature, called the funding “essential.”

The Land Bank has demolished more than 200 vacant buildings and provided funding to renovate an additional 33 structures that has led to the creation of more than 250 housing units.

In recent months, it has started work to demolish nine city-owned buildings along Summit Avenue in Schenectady to make way for 41 townhomes proposed by MLB Construction and AIK Property Group.

The organization has also razed buildings along State Street, including the former Mohawk Auto Center which county officials hope to turn into a grocery store in the future.

RuthAnne Visnauskas, commissioner of New York State Homes and Community Renewal, praised the Land Bank’s work, calling it a “model for how targeted investments can strengthen communities and improve quality of life for residents.”

The $2 million award is the largest grant an organization can receive through the Homes and Community Renewal Land Bank Initiative.

“New York State Homes and Community Renewal is proud to support the Capital Region Land Bank’s continued efforts to revitalize neighborhoods and increase housing supply,” Visnauskas said.

The Capital Region Land Bank is administered by the Schenectady Metroplex Development Authority.

For full report, please click the source link above.

Birmingham Land Bank Authority Cuts Ribbon on a Home for the Holidays

Posted on December 18, 2024December 18, 2024 by Safeguard

One Community Update
December 13, 2024

Source: The Birmingham Times

Christmas came a bit early this year for one Birmingham resident. Michael Reed and his family are “Home for the Holidays”.

The Birmingham Land Bank Authority hosted a ribbon cutting for Birmingham’s newest housing development on Thursday in the historic Fountain Heights neighborhood for Reed and his family.

His new home, which will be a 1,500 square-feet structure will be the family domicile for him, his 14-year-old daughter, and 67-year-old mother. But it’s bigger than his home, he said. “My hope is to be a part of the revitalization of the city. I love Birmingham.”

The theme for the event, Home for the Holidays, emphasized the importance of family, community, and belonging, particularly during the holiday season.

The Land Bank launched the Accelerated Home Ownership Program (AHOP) last year with a goal of building 25 new homes in the Fountain Heights neighborhood. The development contributes to the city’s ongoing efforts to expand housing options and opportunities and foster neighborhood renewal.

Caroline Douglas, Executive Director of the Land Bank Authority, said the day marks a significant milestone in the Land Bank’s history, but it also marks as a special day for the Reed family.

“This is an example that you can change a community not having to do 100 homes at a time, but we can change it one house at a time,” said Douglas. “ … This house demonstrates the power of the Land Bank’s ability to take property that has been lying vacant, overburdened by delinquencies that no one would pay for, and we are able to transfer that to other owners to make it development ready.”

The first home, constructed by local builder QS Construction, represents a collaborative effort between the City of Birmingham, the Birmingham Land Bank Authority, and other community partners.

QS Construction is a leader in custom and affordable homebuilding, dedicated to creating high-quality homes that strengthen communities and improve lives. With a focus on craftsmanship and innovation, QS Construction partners with municipalities, developers, and community organizations to deliver housing solutions that meet the needs of residents and enhance neighborhoods.

“To see QS Construction, two African American men, this house in Fountain Heights… to see the quality of what’s behind us go up in Fountain Heights, that gives people hope,” she said.

For full report, please click the source link above.

Governor Moore Announces Historic State Funding to Accelerate Rehabilitation of Vacant Buildings and Create More Affordable Housing in Baltimore City

Posted on December 18, 2024 by Safeguard

One Community Update
December 17, 2024

Source: The Office of Governor Wes Moore

Governor Wes Moore today announced $50.8 million in awards through the Baltimore Vacants Reinvestment Initiative to revitalize Baltimore City’s neighborhoods by reducing the number of vacant buildings across the city. The 43 awards tap $50 million committed to the program in the State’s Fiscal Year 2025 budget—a historic acceleration of funding to the department to rehabilitate vacant properties—clearing the way for affordable housing, new green space and mixed-use developments.

“In order for it to be Maryland’s decade, it has to be Baltimore’s time,” said Gov. Moore. “This historic investment through the Baltimore Vacants Reinvestment Initiative will transform the City of Baltimore by addressing vacancy brick by brick and block by block.”

The Baltimore Vacants Reinvestment Initiative is one of the Maryland Department of Housing and Community Development’s seven State Revitalization Programs that provides funding to public, private and nonprofit partners in Baltimore City. Established in October by executive order, the initiative taps key community, corporate, philanthropic and government leaders to leverage targeted investments to move at least 5,000 vacant properties into homeownership or other positive outcomes, such as demolition and stabilization, between Fiscal Year 2025 to Fiscal Year 2029.

“The $50.8 million in funding through the Baltimore Vacants Reinvestment Initiative is a key component of the Moore-Miller Administration’s plan to build a stronger Baltimore by converting the city’s vacant buildings into new homes and lovable spaces,” said Maryland Department of Housing and Community Development Secretary Jake Day. “This funding will allow our local government and non-profit partners the ability to create stronger neighborhoods by increasing home ownership, adding more commercial space and creating new public spaces to make Baltimore better.”

Funding will go directly to awardees to support identified projects, including:

Baltimore City Department of Housing and Community Development, awarded $20 million to accelerate the acquisition of properties for demolition, stabilization and rehabilitation and reuse.

Maryland Stadium Authority, awarded $9 million to support demolition, stabilization and related activities for vacant and abandoned properties in priority neighborhood target areas through the expanded partnership between the Maryland Department of Housing and Community Development and the City of Baltimore.

Druid Hill Partnership Inc., awarded a combined $2.15 million for the stabilization and rehabilitation of several residential properties near Druid Hill Park, Reservoir Hill, West North Avenue and Penn North neighborhoods.

Neighborhood Impact Investment Fund, Inc., awarded $1.5 million to support acquisition, demolition, infrastructure and/or design for the next phase of Reservoir Square on West North Avenue, which will include a nearby grocery store, neighborhood retail, and mixed-income apartments and parking.

Southeast Community Development Corporation, awarded $1.5 million for acquisition and stabilization of the Crown Cork & Seal site on Eastern Avenue in advance of a large-scale rehabilitation effort for mixed-use live and work artist use. list of awardees is available on the DHCD website.

“The State’s BVRI program is integral to achieving Mayor Scott’s goal of restoring vibrant and sustainable neighborhoods throughout the city,” said Baltimore City Housing Commissioner Alice Kennedy. “The BVRI funds directly support the City’s $3 billion plan to reduce vacant properties, and with this support, we can continue and expand our work to accomplish whole block outcomes and build stronger, more inclusive communities.”

For full report, please click the source link above.

The National Property Preservation Conference Celebrates Two Decades of Industry Action

Posted on December 16, 2024 by Safeguard

Safeguard in the News
December 13, 2024

Source: MortgagePoint

On November 11-13, 2024, the National Property Preservation Conference (NPPC) celebrated its twentieth anniversary. It brought together industry professionals representing mortgage servicing, property preservation, and related government agencies for several days of discussion, education, and networking centered on all facets of the mortgage field services industry.

Created by Safeguard’s founder, the late Robert Klein, the NPPC moved to a new venue this year at the MGM National Harbor Resort and Casino near Washington, D.C. The festivities kicked off on the evening of Monday, November 11, with a Welcome Reception at the Casino’s Felt Lounge before Tuesday commenced with a full day’s worth of programming.

The Lay of the Land

Tuesday’s schedule began with a Keynote Address from Bill Killmer, SVP of Legislative and Political Affairs at the Mortgage Bankers Association. Killmer put the recent presidential election under the microscope, breaking down both how the election played out and examining the various ways President Trump’s impending return to the White House could impact the industry.

While the House had still not been formally called for the Republicans at the time of the event, Killmer’s presentation outlined various scenarios. Under the “full GOP sweep” scenario that Killmer posited, and which eventually proved to be the case, Killmer noted that President Trump’s administration would likely pursue rollbacks of various aspects of President Biden’s regulatory agenda (such as the Inflation Reduction Act) and to extend the tax provisions implemented by the Tax Cuts and Jobs Act. He then delved into various likely Trump administration priorities, such as corporate tax rates, FICA thresholds, and supply-side Housing Tax Credits.

Killmer also noted that Republican control of the White House and Congress could reduce “the impact of any congressional pushback on moves by a Trump FHFA Director to shrink GSE footprint, rollback equity plans, raise fees, or end conservatorship via administrative action.” However, Killmer added that “prospects for passage of comprehensive GSE Reform legislation remain low,” but that narrower, more targeted GSE-related bills were more likely to get traction. He also said to expect a new CFPB Director, as well as possible changes to the Bureau.

Continuing a longstanding NPPC tradition, Ed Delgado, AMP, Managing Director of Mortgage Policy Advisors and Chairman Emeritus of Five Star Global next moderated a panel of industry experts focused on “Current Trends and Future Outlook of the Property Preservation Industry.” This year’s panelists included Michael Greenbaum, COO of Safeguard Properties; Benjamin Gottheim, VP, Servicing Policy, Single-Family Portfolio & Servicing at Freddie Mac; Leslie Meaux-Pordzik, SVP for the Office of Issuer and Portfolio Management at Ginnie Mae; Tim Rood, Founder & CEO at Impact Capitol; and John Thibaudeau, VP, Single-Family Real Estate Asset Management at Fannie Mae. [Editor’s Note: Five Star Global is the parent company of MortgagePoint, and MortgagePoint was a media sponsor of this year’s NPPC.]

Rood built upon Killmer’s presentation by discussing how President Trump’s reelection is likely to be a “game-changer” for industry regulation. Whereas the Biden administration prioritized issues such as climate change, DEI, and minority homeownership, Rood said that we should look to the precedent of President Trump’s previous administration for suggestions of what to expect. Rood also suggested that GSE reform and a reexamination of conservatorship will likely be on the table.

The panel discussed other likely trends on the horizon during the incoming administration, including changes in underwriting criteria, a focus on ways to lower interest rates, and potential friction between President Trump and Fed Chair Jerome Powell. Housing, and in particular strategies to make housing more affordable, should be a goal, Rood noted, who observed that “Living indoors has never been more expensive.”

The panel said that foreclosure rates and REO inventories are expected to remain low, barring any unforeseen “black swan” events. Gottheim explained that more people are selling after a foreclosure is initiated but before the process is completed, exiting with a high home-sale price. The whole ecosystem, Gottheim continued, is focused on working with homeowners and letting them leverage the high levels of equity the market currently makes available.

Delgado asked Thibaudeau to discuss Fannie Mae’s HomePath program, which allows buyers to purchase REO properties out of Fannie Mae’s inventory, allowing owner/occupants more chances to purchase a home without competing against institutional investors.

Thibaudeau added that due to ongoing inventory shortages, there is a renewed focus on rehabbing properties before sale, as opposed to selling as-is. Safeguard’s Greenbaum then laid out some of the challenges currently facing property preservation vendors, including competition for workers from the gig economy and the ongoing impact of record-low defaults. Despite the cyclical nature of real estate, properties still need to be assessed throughout that cycle. He also suggested that prop pres companies struggling to make ends meet may need to explore opportunities within “adjacent markets” such as single-family rental. He also reiterated the importance of staying focused on the fundamentals, ensuring comprehensive assessments to “truly understand the state of the property upfront.”

Exploring Different Facets of the Industry

Next up was a panel focused on the legal aspects of the property preservation sector, entitled “Understanding and Adapting to New Legislation,” moderated by Linda Erkkila, General Counsel of Safeguard Properties and featuring Greg Wallach, Supervising Attorney at Aldridge Pite; Marcel Bryar, Managing Director of Mortgage Policy Advisors LLC; and Brendan Kelleher, Associate Director of Loan Administration and Residential Policy at MBA.

The panel focused heavily on so-called “squatter laws” across various states including Alabama, Florida, and Georgia, as well as providing examples of relevant affidavits. It also discussed the implications and aftermath of Loper Bright Enterprises v. Raimondo, a 2024 Supreme Court case that overturned the 40-year-old Chevron doctrine.

The stage then welcomed a panel entitled “Safeguarding Assets: Best Practices for Inspections and Recovery in FEMA-Declared Disasters.” Speakers included Troy Badman of FEMA Individual Assistance; Kimberly Dawson, SF Collateral Risk-Real Estate Asset Management Director, Property and Field Solutions at Fannie Mae; Johanna Granados, Account Executive at Verisk; and Laura MacIntyre, President of DIMONT.

They discussed takeaways from the two-dozen billion-dollar weather and climate disasters that impacted the United States in 2024 and what factors FEMA considers when evaluating a request for an Individual Assistance (IA) declaration, including state fiscal capacity and resource availability; uninsured home and personal property losses; disaster-impacted population profile; impact to community infrastructure; casualties; and disaster-related unemployment. They also explored the increasingly difficult challenges of insurance costs and coverage, noting that average homeowners’ insurance costs have become significantly high in states such as Oklahoma, Texas, and Nebraska. The panel also underscored the critical importance of identifying damages early in the aftermath of these disasters.

Following a lunch break, programming resumed with a Fireside Chat with Marcea Barringer, Duty to Serve, Office of Housing and Community Initiatives, FHFA, before moving into a look at Native American Housing Programs, moderated by Elizabeth Squires, AVP, Client Account Management, Safeguard Properties, and featuring insights from Erin Persons, Director, Duty to Serve at Freddie Mac.

The afternoon continued with “Code Compliance: Supporting Community Revitalization Through Collaboration,” moderated by Steve Meyer, AVP, High Risk and Investor Compliance at Safeguard Properties, and featuring Bryan Wagner and Victor Martinez of the American Association of Code Enforcement (AACE); Jennifer Rossman, Director of Client Operations at Safeguard Properties; and Amanda Koontz, Manager of Property Preservation at Carrington Mortgage. The Code Compliance panel delved into topics including current primary challenges for Code Enforcement, servicer perspectives, pre-sale vs. post-sale, the handling of violations, property registration challenges, the importance of direct point of contact for handling violations, and the future of code enforcement. The discussion included insights into what conditions are driving most violations, whether the violations are complaint-driven or if there are processes to proactively inspect areas for violations, and what issues are causing the most problems for cities. Looking ahead, the panel also discussed the potential future of code enforcement, such as using AI to identify violations.

The agenda next brought attendees “From Claim to Closure: Navigating Expectations Throughout the Hazard Insurance Claims Process.” Safeguard’s Michael Greenbaum returned to the stage for this session moderated by Jami Sherr, President and CEO at Sterling Claims Management, joined by Baker Breedlove, VP at Lakeview Loan Servicing, LLC; Aubrey Gilmore, President of Rutledge Claims Management, Inc.; and Priscilla Rivera, VP, Client & Operational Development at Sterling Claims Management, Inc. They walked through the ins and outs of insurable vs. non-insurable damages, ranging from water, fire/smoke, and wind/hail to vandalism and theft. They also discussed examples of areas where servicers may be “leaving money on the table,” citing data from a study by the Office of Program Policy Analysis & Government Accountability, an office of the Florida Legislature.

As the day headed into the home stretch, Lisa Solis, Director, Investor Compliance at Safeguard moderated the day’s Investor/Insurer Panel Discussion, featuring insights from William Collins, Director, National Servicing Center at U.S. Department of Housing and Urban Development; Chris Cordina, Real Estate Manager at Fannie Mae; and Geoff Williams, Loss Mitigation Senior Manager at Freddie Mac. They continued the discussion of how servicers and prop pres companies need to address weather-related property damages and claims.

The first full day of programming wrapped up with an “Endnote Address” from Julienne Joseph, Senior Counselor to the Secretary, HUD. Her speech spoke powerfully about the human aspects of what the industry does, focusing on the importance of helping people pursue the American Dream of homeownership. She recounted how her career was shaped by seeing firsthand the struggles of American homeowners and wanting to try to ensure that she helped people avoid those feelings of desperation that come with economic hardships. She shared how she came to work under HUD Secretary Fudge and how the Secretary sought to recruit people who remained “married to [their why]”—to the internal, personal drive to help people and make a difference in the industry.

A Focus on Tech, Government, and Servicing

The second day of the conference opened with a Keynote Address from Julia R. Gordon, Assistant Secretary for Housing and Federal Housing Commissioner, HUD. With a new Presidential administration set to take the White House in January, Gordon used the keynote as a chance to recount some of the accomplishments she was most proud of from her tenure as Federal Housing Commissioner, including renovation loans, the COVID waterfall designed to keep people in their homes during and after the pandemic, and allowing lenders to consider first-time homebuyers’ rental payment history.

She also noted that the increased focus on manufactured housing as one lever to wield against housing shortages would likely continue.

Following Gordon’s Keynote, the penultimate panel rolled out with the “Tech Transformations: Leveraging AI and Other Innovations for the Future of Property Preservation” presentation. With Mike Greenbaum, COO, Safeguard Properties moderating, panelists for this tech panel included Min Alexander, CEO and Founder of BOSSCAT Home Services and Technologies; Robyn Bui, SVP at Quality Claims Management; Clint Lien, VP of Cost Research and Product Development at The Bluebook International, Inc.; Vin Vomero, Co-Founder & CEO at FoxyAI; and Scott Heller, VP, Information Technology at Safeguard Properties.

The panel delved into the hot topic of AI applications within and throughout the property preservation sector, including applications such as helping determine occupancy, aiding in disaster inspections, and utilizing machine learning models for forecasting. Heller compared the current state of AI to the early days of the internet, predicting “exponential growth” compared to the pace of traditional technological advancements.

Overall, the panel laid out multiple examples of how AI adoption is driving efficiency, cost savings, and improved decision-making within property preservation and management. They also noted headwinds such as high initial investment costs, data-quality requirements, and the ongoing training needs of AI models.

The conference then wrapped up with the final panel of the day, entitled “Tackling the Challenges of Servicing Government-Backed Loans.” Jennifer Hopkins, Client Account Manager, Safeguard Properties moderated and speakers for this session included Jodi Gaines, CEO at Claims Recovery Financial Services; Scott Arnold, VP at National Field Representatives; Carrie Derr, Property Preservation and Liquidation Manager at Planet Home Lending; Brooke Marshall, VP Property Preservation at LoanCare; Diane Snider, Post-Foreclosure Claims Manager at Truist; and Justin Tucker, VP MSR Sub-Servicing Oversight & Asset Management at Lakeview Loan Servicing.

Once the event’s final panel wrapped, women attendees were invited to gather for the Women’s Impact Network (WIN) Luncheon. The event was created in the spirit of leadership, mentorship, and empowerment of women in the Property Preservation industry.

Hosted by Elizabeth Squires of Safeguard Properties, Jodi Gaines of CRFS, and Laura MacIntyre of DIMONT, the event created an opportunity to share individual experiences both as a mentor and a mentee. Attendees were encouraged to network not only at the event, but to stay connected throughout the year. With the success of the inaugural event, the WIN Luncheon looks to become a staple at future NPPC events.

Next year’s NPPC is scheduled for November 17-19, 2025, at the MGM Resort & Casino National Harbor. For more information on the National Property Preservation Conference, visit nppconf.com.

To access the full story, please click the source link above.

CoreLogic: US Overall Delinquency Rate Continues to Trend Upward in 2024

Posted on December 16, 2024 by Safeguard

Industry Update
December 11, 2024

Source: CoreLogic

CoreLogic®, a leading global property information, analytics and data-enabled solutions provider, today released its Loan Performance Insights Report for September 2024. In September, 3% of all mortgages in the U.S. were in some stage of delinquency (30 days or more past due, including those in foreclosure), up 0.2% year over year from September 2023.

The foreclosure inventory rate, which measures the share of mortgages in some stage of the foreclosure process, was 0.3% in September, unchanged from the same time last year. The foreclosure inventory rate in September 2024 continues near the lowest rates seen since 1999.

To gain a complete view of the mortgage market and loan performance health, CoreLogic examines all stages of delinquencies. In September 2024, the U.S. delinquency and transition rates and their year-over-year changes were as follows:

Early-Stage Delinquencies (30 to 59 days past due): 1.6%, up from 1.5% in September 2023.

Adverse Delinquency (60 to 89 days past due): 0.5%, up from 0.4% in September 2023.

Serious Delinquency (90 days or more past due, including loans in foreclosure): 0.9%, unchanged from the same time last year and continuing its downward trend from a high of 4.3% in August 2020.

Foreclosure Inventory Rate (the share of mortgages in some stage of the foreclosure process): 0.3%, unchanged from September 2023.

Transition Rate (the share of mortgages that transitioned from current to 30 days past due): 0.8%, unchanged from September 2023.

“Loan performance in the third quarter of 2024 showed a continual upward trend in mortgage delinquencies. Delinquencies remain low, particularly when compared with those during the Great Recession. However, 70% of metropolitan areas showed an increase in the overall delinquency rate from a year earlier, and more concerning, 30% of metropolitan areas showed an increase in the serious delinquency rate. As recently as the second quarter of 2024, only 5% of metros recorded an increase in serious delinquency rates. The increase in the serious delinquency rate shows that borrowers who enter the delinquency pipeline are having difficulty catching up on their late payments,” said Molly Boesel, senior principal economist for CoreLogic.

State and Metro Takeaways:

Thirty-eight states saw overall mortgage delinquency rates increase year over year in September. The two states with the highest delinquency rates were Louisiana (up 0.6 percentage points) and Texas (up 0.4 percentage points). All other states ranged between -0.4 and 0.3 percentage points.

In September, 267 out of 384 U.S. metropolitan areas posted an annual increase in their overall delinquency rate. Top areas include Pine Bluff, Arkansas (up 1.1 percentage points); Houston-The Woodlands-Sugar Land, Texas (up 1.0 percentage points); New Orleans-Metairie, Louisiana (up 0.8 percentage points); Altoona, Pennsylvania (up 0.8 percentage points); Hammond, Louisiana (up 0.8 percentage points); and Houma-Thibodaux, Louisiana (up 0.8 percentage points). All other year-over-year changes ranged between -2.8 and 0.7 percentage points.

In September, 116 metropolitan areas posted an annual increase in their serious delinquency rate. The top areas include Kahului-Wailuku-Lahaina, Hawaii (up 0.8 percentage points); Houston-The Woodlands-Sugar Land, Texas (up 0.6 percentage points); and Beaumont-Port Arthur, Texas (up 0.4 percentage points). All other year-over-year changes ranged between -0.4 and 0.3 percentage points.

The nation’s overall delinquency increased on a year-over-year basis for the fourth consecutive month.

Summary

The share of loans 30 or more days past due in September increased year over year.

The nation’s serious delinquency rate did not change year over year.

The U.S. foreclosure rate stayed roughly the same as last year in September.

For full report, please click the source link above.

Q3 Update: Delinquencies, Foreclosures and REO

Posted on December 16, 2024 by Safeguard

Industry Update
December 13, 2024

Source: CalculatedRisk Newsletter

We will NOT see a surge in foreclosures that would significantly impact house prices (as happened following the housing bubble) for two key reasons: 1) mortgage lending has been solid, and 2) most homeowners have substantial equity in their homes.

Last week, CoreLogic reported on homeowner equity: CoreLogic: US Homeowners See Equity Gains Drop by More Than 5 Percent in Q3

In the third quarter of 2024, the total number of mortgaged residential properties with negative equity increased by 3.5% from the second quarter of 2024, to currently about 990,000 homes with negative equity, or 1.8% of all mortgaged properties. On a year-over-year basis, negative equity declined by 3%, or about 30,000 fewer homes in negative equity from the third quarter of 2023.

With substantial equity, and low mortgage rates (mostly at a fixed rates), few homeowners will have financial difficulties.

Some simple definitions (for housing):

Forbearance is the act of refraining from enforcing mortgage debt.

Delinquency is the failure to make mortgage payments on a timely basis.

Foreclosure is when the mortgage lender takes possession of the property after the mortgagor failed to make their payments. “In foreclosure” is the process of foreclosure.

REO (Real Estate Owned) is the amount of real estate owned by lenders.

Here is some data on REOs through Q3 2024 …

This graph shows the nominal dollar value of Residential REO for FDIC insured institutions based on the Q3 FDIC Quarterly Banking Profile released yesterday. Note: The FDIC reports the dollar value and not the total number of REOs.

The dollar value of 1-4 family residential Real Estate Owned (REOs, foreclosure houses) was mostly unchanged YOY from $747 million in Q3 2023 to $765 million in Q3 2024. This is historically extremely low.

Fannie Mae reported the number of REOs decreased to 6,481 at the end of Q3 2024, down 10% from 7,179 at the end of the previous quarter, and down 24% year-over-year from Q3 2023. Here is a graph of Fannie Real Estate Owned (REO).

This is very low and well below the pre-pandemic levels. REOs are a lagging indicator. REOs increase when borrowers struggle financially and have little or no equity, so they can’t sell their homes – as happened after the housing bubble. That will not happen this time.

Here is some data on delinquencies …

It is important to note that loans in forbearance are counted as delinquent in the various surveys but not reported to the credit agencies.

The percent of loans in the foreclosure process decreased year-over-year from 0.49 percent in Q3 2023 to 0.45 percent in Q3 2024 (red) and remains historically low. Loans in forbearance are mostly in the 90-day bucket at this point, and that has declined recently. From the MBA:

Compared to last quarter, the seasonally adjusted mortgage delinquency rate decreased for all loans outstanding. By stage, the 30-day delinquency rate decreased 14 basis points to 2.12 percent, the 60-day delinquency rate increased 3 basis points to 0.73 percent, and the 90-day delinquency bucket increased 7 basis points to 1.08 percent. …

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 third quarter was 0.45 percent, up 2 basis points from the second quarter of 2024 and 4 basis points lower than one year ago. emphasis added

Both Fannie and Freddie release serious delinquency (90+ days) data monthly. Freddie Mac reported that the Single-Family serious delinquency rate in October was 0.55%, up from 0.54% September. Freddie’s rate is up slightly year-over-year from 0.54% in October 2023. This is below the pre-pandemic lows. 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 October was 0.52%, unchanged from 0.52% in September. The serious delinquency rate is down year-over-year from 0.53% in October 2023. This is below the pre-pandemic lows. 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.

The pandemic related increase in serious delinquencies was very different from the increase in delinquencies following the housing bubble. Lending standards have been fairly solid over the last decade, and most of these homeowners have equity in their homes – and they have been able to restructure their loans once they were employed.

And on foreclosures …

ICE reported that active foreclosures have decreased are near the records. From ICE: ICE Mortgage Monitor: Recent Vintage Borrowers Pounced on Early-Autumn Rate Drops as 300K+ Refinanced in September and October

Foreclosure starts rose by +12.2% in October, but remain down -12.3% year over year

Completed foreclosures increased more than 10% in the month but are still almost 10% below last year

The number of loans in active foreclosure rose by 1K (+0.7%) in October, but remains -34% below pre-pandemic levels

Due to ongoing VA foreclosure moratoriums, a number of mortgages that would have otherwise been referred to foreclosure are remaining seriously past due, elevating serious delinquency rates while muting foreclosure activity

The bottom line is there will not be a huge wave of foreclosures as happened following the housing bubble. The distressed sales during the housing bust led to cascading price declines, and that will not happen this time.

For full report, please click the source link above.

Foreclosure Filings Ease Nationwide in November 2024 Amid Seasonal Influences

Posted on December 12, 2024 by Safeguard

Industry Update
December 9, 2024

Source: ATTOM

ATTOM, a leading curator of land, property data, and real estate analytics, today released its November 2024 U.S. Foreclosure Market Report, which shows there were a total of 29,390 U.S. properties with foreclosure filings — default notices, scheduled auctions or bank repossessions – down 9 percent from a year ago, and down 5 percent from the prior month.

“The slight decline in U.S. foreclosure activity during November most likely reflects the seasonal ebb we often see this time of year,” said Rob Barber, CEO at ATTOM. “While foreclosure filings are down both month-over-month and year-over-year, the data highlights areas of the country, such as Nevada, Florida, and Connecticut, where foreclosure rates remain relatively high. As we move into 2025, we’ll be closely monitoring how economic pressures and market dynamics may influence a potential rebound in activity.”

Highest foreclosure rates in Nevada, Florida, and Connecticut

Nationwide one in every 4,795 housing units had a foreclosure filing in November 2024. States with the highest foreclosure rates were in: Nevada (one in every 2,941 housing units with a foreclosure filing); Florida (one in every 3,047 housing units); Connecticut (one in every 3,210 housing units); Maryland (one in every 3,535 housing units); and Indiana (one in every 3,567 housing units).

Among the 224 metropolitan statistical areas with a population of at least 200,000, those with the highest foreclosure rates in November 2024 were Modesto, CA (one in every 1,890 housing units with a foreclosure filing); Reading, PA* (one in every 2,133 housing units); Bakersfield, CA (one in every 2,155 housing units); Riverside, CA (one in every 2,207 housing units); and Chico, CA (one in every 2,270 housing units).

Those metropolitan areas with a population greater than 1 million, with the worst foreclosure rates in November 2024, including Riverside, CA were: Cleveland, OH (one in every 2,385 housing units); Philadelphia, PA (one in every 2,414 housing units); Miami, FL (one in every 2,551 housing units); and Las Vegas, NV (one in every 2,645 housing units).

Greatest number of foreclosure starts still in Texas, Florida, California, and New York

Lenders started the foreclosure process on 20,231 U.S. properties in November 2024, down 3 percent from last month and down 10 percent from a year ago.

States that had the greatest number of foreclosure starts in November 2024 again included: Texas (2,542 foreclosure starts); Florida (2,438 foreclosure starts); California (2,239 foreclosure starts); New York (1,167 foreclosure starts); and Pennsylvania (844 foreclosure starts).

Those major metropolitan areas with a population greater than 1 million that had the greatest number of foreclosure starts in November 2024 included: New York, NY (1,184 foreclosure starts); Houston, TX (969 foreclosure starts); Miami, FL (768 foreclosure starts); Philadelphia, PA (723 foreclosure starts); and Los Angeles, CA (641 foreclosure starts).

Foreclosure completions up 21 percent from last year

Lenders repossessed 3,089 U.S. properties through completed foreclosures (REOs) in November 2024, up 5 percent from last month and up 21 percent from last year.

States that had the greatest number of REOs in November 2024, included: California (402 REOs); Texas (232 REOs); New York (223 REOs); Illinois (206 REOs); and Pennsylvania (160 REOs).

Those major metropolitan statistical areas (MSAs) with a population greater than 1 million that saw the greatest number of REOs in November 2024 included: New York, NY (198 REOs); Chicago, IL (177 REOs); Baltimore, MD (88 REOs); San Francisco, CA (83 REOs); and Los Angeles, CA (80 REOs).

For full report, please click the source link above.

HUD Extends Foreclosure Moratoriums in Areas Devastated by Hurricanes Helene and Milton

Posted on December 12, 2024 by Safeguard

Industry Update
December 11, 2024

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

The U.S. Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) announced it is extending through April 11, 2025, its foreclosure moratoriums for FHA-insured Single Family Title II forward and Home Equity Conversion Mortgages in Presidentially Declared Major Disaster Areas (PDMDAs) declared as a result of this past summer’s Hurricanes Helene and Milton. This extension provides borrowers affected by these catastrophic events with additional time to access federal, state, or local housing resources; to consult with a HUD-approved housing counselor; and/or to rebuild their homes.

“When disaster strikes, we know that families and communities need not only resources, but time to recover,” said HUD Agency Head Adrianne Todman. “Today, by extending our foreclosure moratorium, we continue the Biden-Harris Administration’s efforts to help those affected by the catastrophic Hurricanes Helene and Milton to repair and rebuild their homes, communities, and lives.”

When Hurricanes Helene and Milton occurred, FHA implemented automatic 90-day foreclosure moratoriums that required mortgage servicers to halt the initiation or completion of all foreclosure actions in PDMDAs on the date that each disaster was declared. FHA is extending the foreclosure moratoriums for all Hurricanes Helene and Milton PDMDAs, regardless of their declaration date, through April 11, 2025. FHA is also extending the deadline dates for servicers to perform certain legal actions related to foreclosure for an additional 180 days following the end of the foreclosure moratoriums.

“Because the consecutive Hurricanes Helene and Milton caused a great deal of damage and disruption, FHA believes it is appropriate to extend our foreclosure moratoriums by 120 days,” said Federal Housing Commissioner Julia Gordon. “This extension will provide more time for homeowners to review a range of options with their mortgage servicer if they are unable to resume regular mortgage payments due to the impact of the disaster.”

Borrowers with FHA-insured mortgages located in Hurricanes Helen and Milton PDMDAs should contact their mortgage or loan servicer immediately for assistance. Multiple options are available for those who cannot resume their regular mortgage payments yet. Borrowers can also obtain additional assistance in the following ways:

Visit the FHA Disaster Relief site or call the FHA Resource Center at 1-800-304-9320 to learn more about disaster relief options.

Contact a HUD-approved housing counseling agency. These agencies have counselors available to assist those impacted by natural disasters in determining assistance needs and identifying available resources. Homeowners can find a HUD-approved housing counseling agency online or use HUD’s telephone look-up tool by calling (800) 569-4287. The telephone look-up tool includes access to information in more than 250 different languages. Borrowers do not have to have an FHA-insured mortgage to meet with a HUD-approved housing counseling agency. There is never a fee for foreclosure prevention counseling.

For borrowers whose homes are destroyed or damaged to an extent that requires reconstruction or complete replacement, contact an FHA-approved lender about FHA’s Section 203(h) program. This program provides 100 percent financing for eligible homeowners to rebuild their home or purchase a new one.

For borrowers seeking to purchase and/or repair a home that has been damaged, contact an FHA-approved lender about FHA’s Section 203(k) loan program. This program allows individuals to finance the purchase or refinance of a house, as well as the costs of repair or renovation, through a single mortgage.

For full report, please click the source link above.

FEMA Fire Management Assistance Declaration – California Franklin Fire

Posted on December 11, 2024 by Safeguard

FEMA Alert
December 10, 2024

FEMA has issued a Fire Management Assistance Declaration for the state of California to supplement state, tribal and local recovery efforts in areas affected by the Franklin Fire on December 9, 2024. The following counties have been approved for assistance:

Public Assistance:

Los Angeles

California Franklin Fire (FM-5548-CA)

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 – West Virginia Post-tropical Storm Helene

Posted on December 10, 2024 by Safeguard

FEMA Alert
December 9, 2024

FEMA has issued a Major Disaster Declaration for the state of West Virgnia to supplement state, tribal, and local recovery efforts in areas affected by Post-tropical Storm Helene from September 25-28, 2024. The following counties have been approved for assistance:

Individual Assistance: