Hearing Set on Vacant Property Maintenance

One Community Update
February 15, 2024

Source: The Garden City News

During a hearing set for Thursday, March 7th, the Garden City Board of Trustees will discuss a proposed law aimed at requiring owners to maintain vacant and abandoned properties. As proposed the local law would also establish a registry of vacant or abandoned properties.

Trustee Charles Kelly noted that the March 7 hearing and the proposed new local law were created after reviews and input from the Village’s Legal Committee (consisting of Trustees Kelly and Ed Finneran).

“There were a number of complaints throughout the village about homes that remained vacant for extended periods of time, some with holes in the roof and some without windows. This has only affected about one-tenth of one percent of homes in Garden City, six to seven homes, but it created a significant issue for the people who live on those blocks and we wanted to give our municipal Building Department the necessary tools to address it….Obviously vacant houses with openings invite other danger to the neighborhood. These are the reasons we’re presenting the local law and scheduling the public hearing,” Trustee Kelly explained.

Mayor Mary Carter Flanagan said many members of the Board of Trustees have heard complaints from residents about vacant or abandoned houses nearby their own. “While it may not represent many homes, if those are the ones next door or across the street it is something the village wants to be able to address,” she commented at the meeting last Thursday night.

 

For full report, please click the source link above.

 

 

 

 

 

 

 

 

 

 

 

Zimmerman’s Bill Giving Locals More Tools to Address Blighted Properties Advances

One Community Update
February 16, 2024

Source: Yahoo! News

State Rep. Alex Zimmerman (R-North Vernon) said his bill to help local communities better address blighted properties recently advanced out of the Indiana House of Representatives unanimously.

According to the U.S. Department of Housing and Urban Development, vacant or abandoned properties can have profound negative impacts on communities including hurting property values, attracting crime and nuisance pests, and presenting health and safety hazards.

To tackle these issues, Indiana’s Unsafe Building law gives cities, town and counties the ability to order the repair or demolition of unsafe buildings. However, Zimmerman said local communities struggle to address derelict or abandoned mobile homes and are seeking the tools to do so via legislation.

“Blighted properties cause issue after issue for communities until they’re either repaired or torn down, and we’ve seen prolonged cases where locals don’t have the legal tools needed to resolve issues involving mobile or manufactured homes,” Zimmerman said. “Our goal is to close a gap in state law so that locals can address these problems, which present risks and dangers to the inhabitants and those around them.”

 

For full report, please click the source link above.

 

 

 

 

 

 

 

 

 

 

 

Blight Fight Shifting to Rehab

One Community Update
February 17, 2024

Source: altoonamirror.com

When Steve Karns of 21st Avenue in Fairview heard that the city planned to tear down a long-derelict house across from his home as part of its blighted property demolition program, he was encouraged.

When Karns subsequently learned that the city instead planned to renovate the house as part of a new program designed to get away from demolition and the creation of vacant lots that generate little tax revenue, Karns was skeptical because the house has deteriorated so badly and seemed too costly to fix.

Karns was still skeptical on Friday, but he became more receptive after learning that the city doesn’t necessarily need to be in the black after such projects, which involve acquisition, clearing the title, removing trash, hiring a contractor, supervising the renovation, then marketing and selling the property.

“I hope they can do it,” he said. “(But) we’ll see.”

After many months of discussion and preparatory efforts, the Redevelopment Authority/Land Bank board this week launched the program by advertising for contractor bids on the renovation of the house, which is on the corner of 21st Avenue and 14th Street.

There’s a pre-bid conference at 10 a.m. Feb. 28 at the house, and bids are due by 10 a.m. March 13 at the city’s Community Development Department in City Hall.

 

For full report, please click the source link above.

 

 

 

 

 

 

 

 

 

 

 

Carroll City Council Alters Proposed Vacant Property Ordinance, Begins Approval Process Over

One Community Update
February 17, 2024

Source: 1380kcim.com

The Carroll City Council made progress during the Monday, Feb. 12 meeting in implementing a vacant property ordinance intended to encourage owners to sell, lease, or otherwise utilize empty structures. The initial ordinance to be advanced by the council would have implemented a registration fee of $500 for functionally abandoned buildings, but it did not include provisions for vacant lots. Ward 3 Councilman Kyle Bauer, who was absent during the ordinance’s first reading last month, says he does not believe a $500 penalty is enough to encourage a property owner to take action.

Bauer recommended they return to the original language, which would put the vacant property penalty at one percent of the assessed valuation. At-Large Councilman LaVern Dirkx noted some properties that would be affected by the ordinance have very low valuations. Bauer and Ward 2 Councilman Jason Atherton suggested combining the two options.

While ordinances like this are common in other communities throughout Iowa, this would be the first for Carroll. Atherton says it is important residents understand the intent behind the ordinance.

The council favored making the changes, but City Attorney Dave Bruner advised they would need to begin the three-reading process over to follow proper procedure. The council voted unanimously to approve the amended ordinance. Two more readings are required before it would become active.

 

For full report, please click the source link above.

 

 

 

 

 

 

 

 

 

 

 

Fannie Mae Recognizes 32 High-Performing Mortgage Servicers

Industry Update
February 12, 2024

Source: Fannie Mae

Fannie Mae announced its 2023 Servicer Total Achievement and Rewards™ (STAR™) Program results, recognizing 32 mortgage servicers for competency, capacity, and overall performance. For more than a decade, Fannie Mae’s STAR Program has awarded high-performing mortgage servicers for their loan volume and portfolio composition, and for demonstrating leading practices to improve the housing industry.

“Our servicing partners’ success is essential to achieving Fannie Mae’s goal of preserving homeownership and maintaining the safety and soundness of our business,” said Cyndi Danko, Senior Vice President and Single-Family Chief Credit Officer, Fannie Mae. “We’re proud to recognize our top-performing STAR Program servicers and their commitment to ensuring operational excellence, reducing credit loss, and continuously improving the overall homebuyer experience.”

Since 2011, Fannie Mae’s STAR Program has enabled broad and lasting improvements across the mortgage servicing industry by promoting servicing knowledge and excellence. The program continues to gain positive momentum and has seen sustained servicer improvement in both metric performance and operational assessment results year over year.

For the 2023 program year, mortgage servicers were evaluated for STAR Performer recognition in three categories: General Servicing, Solution Delivery, and Timeline Management based on the results of the Servicer Capability Framework and STAR Performance Scorecard.

 

For full report, please click the source link above.

 

 

 

 

 

 

 

 

 

 

 

Freddie Mac Announces 2023 SHARP Award Winners

Industry Update
February 15, 2024

Source: Freddie Mac

Freddie Mac announced the nine winners of its 2023 Servicer Honors and Rewards Program (SHARP)SM, which annually recognizes mortgage loan Servicers for quality servicing, risk management and sustainable homeownership resulting in superior portfolio performance. The winners represent outstanding customer service and positive efforts to prevent and alleviate loan delinquencies. Rankings are automatically determined based on performance relative to other Servicers in each of three rank groups.

“We’re proud to honor and highlight the outstanding work undertaken by our Servicers and this year’s SHARP winners,” said Bill Maguire, Freddie Mac’s Vice President of Single-Family Servicing Portfolio Management. “We thank all our Servicers for their steadfast dedication to homeowners in need of mortgage relief and their contribution to help Freddie Mac make sustainable homeownership a reality.”

 

For full report, please click the source link above.

 

 

 

 

 

 

 

 

 

 

 

Fannie “Real Estate Owned” Inventory Decreased Q4 2023

Industry Update
February 15, 2024

Source: Calculated Risk

Fannie reported results for Q4 2023. Here is some information on single-family Real Estate Owned (REOs).

Fannie Mae reported the number of REOs decreased to 8,403 at the end of Q4 2023, down 4% from 8,779 at the end of Q4 2022.

For Fannie, this is down 95% from the 166,787 peak number of REOs in Q3 2010.

This is well below the normal level of REOs for Fannie, and although REO levels might increase in 2024, there will not be a huge wave of foreclosures.

 

For full report, please click the source link above.

 

 

 

 

 

 

 

 

 

 

 

Mortgage Delinquencies Increase in the Fourth Quarter of 2023

Industry Update
February 8, 2024

Source: Mortgage Bankers Association

The delinquency rate for mortgage loans on one-to-four-unit residential properties increased to a seasonally adjusted rate of 3.88 percent of all loans outstanding at the end of the fourth quarter of 2023, according to the Mortgage Bankers Association’s (MBA) National Delinquency Survey.

The delinquency rate was up 26 basis points from the third quarter of 2023 but down 8 basis points from one year ago. The historical average for the seasonally adjusted mortgage delinquency rate from 1979 through 2023 is 5.25 percent. Of particular note, FHA delinquencies were up 131 basis points.

The percentage of loans on which foreclosure actions were started in the fourth quarter remained unchanged at 0.14 percent.

“Mortgage delinquencies increased across all product types for the second consecutive quarter,” said Marina Walsh, CMB, MBA’s Vice President of Industry Analysis. “While the overall delinquency rate is still very low compared to the historical average, the pace of new loans entering delinquency picked up and some loans moved into later stages of delinquency. The resumption of student loan payments, robust personal spending, and rising balances on credit cards and other forms of consumer debt, paired with declining savings rates, are likely behind some borrowers falling behind at the end of 2023.”

Added Walsh, “The labor market is still quite resilient with the unemployment rate – strongly correlated with mortgage performance – remaining at 3.7 percent in January. Any weakening in employment conditions would likely lead to more borrowers falling behind on their payments in the coming quarters.”

 

For full report, please click the source link above.

 

 

 

 

 

 

 

 

 

 

 

U.S. Foreclosure Activity Sees Notable Increase in January 2024

Industry Update
February 13, 2024

Source: ATTOM

ATTOM, a leading curator of land, property, and real estate data, today released its January 2024 U.S. Foreclosure Market Report, which shows there were a total of 33,270 U.S. properties with foreclosure filings — default notices, scheduled auctions or bank repossessions – up 5 percent from a year ago, and up 10 percent from the prior month.

“We observed a slight uptick in foreclosure filings, which may be partially attributed to the typical post-holiday progression of filings through the legal system,” said Rob Barber, CEO at ATTOM. “However, other external factors may be at play such as escalating interest rates, inflation, employment shifts and other market dynamics. We remain vigilant in monitoring these trends to understand their full impact on foreclosure activity.”

Foreclosure Completion Numbers Increase Monthly in 19 States

Lenders repossessed 3,954 U.S. properties through completed foreclosures (REOs) in January 2024, up 1 percent from a year ago and up 13 percent from last month – the first month over month increase in completed foreclosures since July 2023.

States that had at least 50 or more REOs and that saw the greatest monthly increase in January 2024 included: Michigan (up 200 percent); Minnesota (up 47 percent); California (up 43 percent); Pennsylvania (up 36 percent); and Missouri (up 34 percent).

Among the 224 metropolitan statistical areas with a population of at least 200,000, that saw the greatest number of REOs included: Detroit, MI (609 REOs); Chicago, IL (194 REOs); New York, NY (163 REOs); Philadelphia, PA (107 REOs); and San Francisco, CA (107 REOs).

 

For full report, please click the source link above.

 

 

 

 

 

 

 

 

 

 

 

FEMA Major Disaster Declaration – Michigan Severe Storms, Tornadoes, and Flooding

FEMA Alert
February 8, 2024  

FEMA has issued a Major Disaster Declaration for the state of Michigan to supplement state, tribal and local recovery efforts in areas affected by severe storms, tornadoes and flooding from August 24-26, 2023.  The following counties have been approved for assistance:

Individual Assistance:

  • Eaton
  • Ingham
  • Ionia
  • Kent
  • Livingston
  • Macomb
  • Monroe
  • Oakland
  • Wayne

 

Michigan Severe Storms, Tornadoes, and Flooding (DR-4757-MI)

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

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

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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