Page 32 – Safeguard Properties

Baltimore City Selling Properties for $1 to Address Vacant Home Crisis

Posted on March 27, 2024March 27, 2024 by Safeguard

One Community Update
March 22, 2024

Buying a house for a buck – sounds too good to be true. Well, that’s because it is.

“The reality is you probably need closer to $150-200,000 to renovate one of these structures,” Dr. Dwanda Farmer, community economic development expert and CEO of the CED Doctor in Baltimore, said.

That’s why the Department of Housing and Community Development (DHCD) is requiring applicants to its newly approved “Fixed Pricing Program” to provide proof they can spend at least $90,000 to renovate a home after purchasing it for just a dollar.

The goal is to rehab some of the city’s thousands of vacant homes. The application link is now live; the department will begin reviewing applications on April 1.

Developers can purchase for $3,000, and nonprofits for $1,000. Individual buyers can purchase for $1, but they must live in the home for five years.

Affordable housing advocates Dr. Dwanda Farmer and Nneka Nnamdi, Executive Director of the SOS Fund, say the program doesn’t serve the people who need it most.

“Baltimore City has provided developer incentives over the last three decades that developers have responded to the needs of this community 80% [AMI or Area Median Income] and above. What I’m asking the mayor to do is to restrict any future public investment to where we most need those – which is 50% and 30% [AMI]. Right now, Baltimore City has 38 units for every 100 needed for 30% and below and 58 units for every 100 units needed for 50% and below. But we are saturated at 80%,” Dr. Farmer said.

For full report, please click the source link above.

FHFA Releases 4th Quarter 2023 Foreclosure Prevention and Refinance Report

Posted on March 27, 2024April 1, 2024 by Safeguard

Industry Update
March 25, 2024

Source: Federal Housing Finance Agency

The Federal Housing Finance Agency (FHFA) released its fourth quarter 2023 Foreclosure Prevention and Refinance Report. The report shows that Fannie Mae and Freddie Mac (the Enterprises) completed 43,903 foreclosure prevention actions during the quarter, raising the total number of homeowners who have been helped to 6,905,703 since the start of conservatorships in September 2008.

The report also shows that 31 percent of loan modifications completed in the fourth quarter reduced borrowers’ monthly payments by more than 20 percent. The number of refinances decreased from 83,522 in the third quarter of 2023 to 71,378 in the fourth quarter of 2023.

The Enterprises’ serious delinquency rate increased slightly from 0.54 percent to 0.55 percent at the end of the fourth quarter. This compares with 3.42 percent for Federal Housing Administration (FHA) loans, 2.01 percent for Veterans Affairs (VA) loans, and 1.52 percent for all loans (industry average).

For full report, please click the source link above.

Share of Mortgage Loans in Forbearance Holds Steady at .22% in February

Posted on March 22, 2024 by Safeguard

Industry Update
March 18, 2024

Source: Mortgage Bankers Association

The Mortgage Bankers Association’s (MBA) monthly Loan Monitoring Survey revealed that the total number of loans now in forbearance remained unchanged at 0.22% as of February 29, 2024. According to MBA’s estimate, 110,000 homeowners are in forbearance plans. Mortgage servicers have provided forbearance to approximately 8.1 million borrowers since March 2020.

In February 2024, the share of Fannie Mae and Freddie Mac loans in forbearance declined 1 basis point to 0.12%. Ginnie Mae loans in forbearance increased by 1 basis point to 0.40%, and the forbearance share for portfolio loans and private-label securities (PLS) increased 1 basis point to 0.29%.

“The performance of servicing portfolios and loan workouts improved in February, as borrowers benefitted from tax refunds, the extra day in the month to submit their payments, and continued resilience in the job market,” said Marina Walsh, CMB, MBA’s Vice President of Industry Analysis. “Only around 110,000 loans nationwide remain in a forbearance plan, with little movement this month. The pandemic’s impact has waned, with only 16 percent of borrowers in forbearance because of COVID-19, compared to 72 percent for temporary personal hardships and 12 percent for natural disasters.”

For full report, please click the source link above.

First Look at February 2024 Mortgage Data

Posted on March 22, 2024 by Safeguard

Industry Update
March 21, 2024

Source: ICE Mortgage Technology

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

The national delinquency rate eased to 3.34% in February, down 4 basis points (bps) from the month before and 11 bps lower than in February 2023
While the number of borrowers one payment behind rose modestly by 10K, those 60 days late as well as those 90 or more days past due both fell to their lowest levels in three months
Delinquency inflows rose 6.5% from January’s eight-month low, while rolls to later stages continued their recent improvement
Serious delinquencies (loans 90+ days past due but not in active foreclosure) are down 103K (-18%) year over year, with the population now standing at 459K
Representing 5.3% of serious delinquencies, February’s 25K foreclosure starts is the second lowest in the last twelve months
The number of loans in active foreclosure fell -7K to 211K, remaining 25% (-72K) below pre-pandemic levels
6K foreclosure sales were completed nationally in February, a 9% decrease from the previous month and the second lowest level in the trailing 12-month period
Prepayment activity rose 3 bps in February to a level not seen since October, as a brief dip in rates heading into the month provided a modest increase in refinance incentive

For full report, please click the source link above.

FEMA Major Disaster Declaration – Maine Severe Storms and Flooding

Posted on March 21, 2024April 24, 2024 by Safeguard

FEMA Alert
March 20, 2024

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

Individual Assistance:

Cumberland
Hancock
Knox
Lincoln
Sagadahoc
Waldo
Washington
York

Public Assistance:

Cumberland
Hancock
Knox
Lincoln
Sagadahoc
Waldo
Washington
York

Maine Severe Storms and Flooding (DR-4764-ME)

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

Map of Affected Areas

List of Affected Zip Codes

Additional Resources

FEMA’s web site

FEMA’s Disaster Declaration Process

Safeguard Properties Industry Alerts

HUD Moratorium on Foreclosure

VA’s Policy Regarding Natural Disasters

Freddie Mac Disaster Relief Policies

Fannie Mae’s Natural Disaster Relief Policies

FEMA Major Disaster Declaration – Rhode Island Severe Storms and Flooding

Posted on March 21, 2024April 24, 2024 by Safeguard

FEMA Alert
March 20, 2024

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

Individual Assistance:

Kent
Providence
Washington

Rhode Island Severe Storms and Flooding (DR-4766-RI)

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

Map of Affected Areas

List of Affected Zip Codes

Additional Resources

FEMA’s web site

FEMA’s Disaster Declaration Process

Safeguard Properties Industry Alerts

HUD Moratorium on Foreclosure

VA’s Policy Regarding Natural Disasters

Freddie Mac Disaster Relief Policies

Fannie Mae’s Natural Disaster Relief Policies

FEMA Major Disaster Declaration – Rhode Island Severe Storm and Flooding

Posted on March 21, 2024April 24, 2024 by Safeguard

FEMA Alert
March 20, 2024

FEMA has issued a Major Disaster Declaration for the state of Rhode Island to supplement state, tribal and local recovery efforts in areas affected by a severe storm and flooding from December 17-19, 2023. The following counties have been approved for assistance:

Individual Assistance:

Kent
Providence
Washington

Rhode Island Severe Storm and Flooding (DR-4765-RI)

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

Map of Affected Areas

List of Affected Zip Codes

Additional Resources

FEMA’s web site

FEMA’s Disaster Declaration Process

Safeguard Properties Industry Alerts

HUD Moratorium on Foreclosure

VA’s Policy Regarding Natural Disasters

Freddie Mac Disaster Relief Policies

Fannie Mae’s Natural Disaster Relief Policies

City Council Bill Proposes Having Vacant Property Owners Pay for Fire Services

Posted on March 19, 2024 by Safeguard

One Community Update
March 12, 2024

Source: foxbaltimore.com

With 13,550 vacant homes in Baltimore, the city council is looking for ways to hold the owners of vacants accountable.

A bill on the table proposes charging the owner of a vacant home for fire services.

According to the bill, it could cost the vacant owner hundreds, if not thousands, of dollars.

Councilwoman Odette Ramos says the likelihood of someone actually paying the fee is low, and others agreed.

In a letter Fire Chief James Wallace says the bill would create a serious administrative burden for the department, which is currently understaffed, saying they simply wouldn’t have the resources to take care of such invoices.

The department also says it’d be “very difficult to calculate the costs associated with an individual incident to determine a fee.”

“We have approximately 600 plus fires a day and our system does not determine in the moment whether a structure is at a vacant or occupied property so the administrative burden of going through 600 plus fires a day to determine if they occurred at a vacant structure would create a burden on us administratively,” said Kim Washington.

There’s another proposal from the housing department on the table to allow city-owned vacant homes to be sold for just $1.

Private buyers would be able to purchase city-owned vacants in certain neighborhoods.

The idea is to stabilize communities with the most vacants and make them look better, but there’s concern about gentrification.

The proposal was to be voted on last week by the Board of Estimates, but the vote was postponed.

For full report, please click the source link above.

Rep. Batista Bill Would Help Push Abandoned Properties for Redevelopment

Posted on March 19, 2024 by Ashley Shepherd

One Community Update
March 12, 2024

Source: Newport Buzz

In a move aimed at tackling Rhode Island’s pressing housing crisis, Representative José F. Batista has introduced legislation requiring towns to publicize lists of abandoned properties. The bill, a component of House Speaker K. Joseph Shekarchi’s comprehensive 15-bill package, seeks to spur housing production across the state.

The proposed legislation, designated as 2024-H 7986, seeks to amend existing statutes on abandoned properties. It mandates municipalities to maintain inventories of such properties, subject to yearly updates, and clarifies the process for their necessary abatement.

Representative Batista, representing District 12 in Providence, emphasized the potential of redeveloping these neglected properties. “There are so many places in our communities that were once useful, and really could be useful again if someone made the effort to redevelop them,” he said. “Development that transforms blighted properties into the homes we desperately need would help address our housing crisis while simultaneously making our existing neighborhoods safer and more vibrant.”

Drawing from his experience as assistant city solicitor for the City of Central Falls from June 2021 to August 2023, Batista highlighted his leadership role in the Nuisance Property Task Force. This task force focused on devising community-oriented solutions for nuisance and abandoned properties, providing Batista with firsthand insight into the challenges and opportunities in this realm.

Moreover, Representative Batista has a track record of advocacy in housing-related matters. Last year, he sponsored a bill (2023-H 6083A) that aimed to streamline appeals of comprehensive permits for affordable housing, contributing to the broader efforts to address housing accessibility in Rhode Island.

The legislation is set for a hearing today before the House Municipal Government and Housing Committee, marking a significant step forward in the state’s endeavor to confront its housing crisis head-on.

For full report, please click the source link above.

Concerns About Blighted Properties Could Soon be Resolved in Crowley

Posted on March 19, 2024 by Safeguard

One Community Update
March 13, 2024

Source: KATC.com

Crowley is known as a historical district but residents are concerned that the abandoned homes are taking away from neighborhood value.

“This used to be a good side of town, and I want to see it back there again,” said Blake Prather.

Prather, a Crowley native tells me the area where he grew up has went downhill. Prather says his neighborhood looks differently now that there are so many abandoned homes.

“For example houses like that, it brings squatters, drug use, it’s even caused drug use in the park, they need to do something about it,” Prather said.

Prather notices other concerns in his childhood community that could possibly be solved by fixing the blighted properties.

“A lot of people are homeless, all I can say is they should probably try to fix them, try to at least rent out the homes, renovate them, anything like that to help the community out,” Prather said.

Crowley’s Mayor, Chad Monceaux told me residents have been begging for neighborhoods to be cleaned up, but requiring a home owner to maintain a property is a long process.

However, Mayor Monceaux and council members are working on an upcoming program that could possibly speed along the process of demolishing abandoned homes.

“We’re working to build a list of property owners who want to get their properties cleaned up at no cost,” Mayor Monceaux said.

Mayor Monceaux told me they plan to apply for the grant in the upcoming months. The program will help blighted property owners who would like to demolish their home but may not have the funds.

Mayor Monceaux is partnering with a non profit organization, Citizens Against Blighted Properties to help track down property owners.

If the grant is approved, the program could start as soon as the beginning of next year.

For full report, please click the source link above.