Page 39 – Safeguard Properties

A Plan to Take on Baltimore’s Vacant Properties, ‘Once and For All’

Posted on December 14, 2023 by Safeguard

Industry Update
December 11, 2023

We’ve all seen them: the thousands of decaying, dilapidated properties in Baltimore City.

On Monday, announced to a cheering crowd at the Greater Harvest Baptist Church in West Baltimore, itself next to vacant homes: a new plan to fix them over 15 years.

“Let’s picture not one single vacant or abandoned home in sight!” Rev. Cristina Paglinauan, a member of the BUILD Executive Team, said to applause Monday.

Mayor Brandon Scott, the Greater Baltimore Committee and the multi-faith community organization BUILD announced the agreement, which would combine public and private dollars to redevelop at least 37,000 – which could get to as many as 45,000 – properties in Baltimore City.

The plan commits $300 million from Baltimore City across 15 years, aiming to generate billions in return in the future.

“We can’t gloss over how big this is,” Scott said Monday, “with our plan, Baltimore will be on the cutting edge of housing policy for the entire country, and we’re going to be putting it to use in the neighborhoods that need it the most.”

For full report, please click the source link above.

FEMA Major Disaster Declaration – Tennessee Severe Storms and Tornadoes

Posted on December 14, 2023February 5, 2024 by Safeguard

FEMA Alert
December 13, 2023

***LAST UPDATED 2/5/2024***

FEMA has issued a Major Disaster Declaration for areas of the state of Tennessee to supplement state, tribal and local recovery efforts in the areas affected by severe storms and tornadoes on December 9, 2023. The following counties have been approved for assistance:

Individual Assistance:

Cheatham
Davidson
Dickson
Gibson
Montgomery
Stewart
Sumner

Public Assistance:

Cheatham
Davidson
Dickson
Gibson
Montgomery
Robertson
Stewart
Sumner
Weakley

Tennessee Severe Storms and Tornadoes (DR-4751-TN)

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

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

OCC Reports Mortgage Performance for Third Quarter of 2023

Posted on December 12, 2023 by Safeguard

Industry Update
December 12, 2023

Source: Office of the Comptroller of the Currency

The Office of the Comptroller of the Currency (OCC) reported on the performance of first-lien mortgages in the federal banking system during the third quarter of 2023.

The OCC Mortgage Metrics Report, Third Quarter 2023 showed that 97.3 percent of mortgages included in the report were current and performing at the end of the quarter, the same as the previous quarter. Performance improved compared to third quarter 2022 when 97.2 percent of mortgages were current and performing.

The percentage of seriously delinquent mortgages—mortgages that are 60 or more days past due and all mortgages held by bankrupt borrowers whose payments are 30 or more days past due—was 1.1 percent in the third quarter of 2023, the same as the previous quarter, and a decrease from 1.3 percent a year ago. The percent of seriously delinquent loans has trended down since the third quarter of 2021.

Servicers initiated 8,965 new foreclosures in the third quarter of 2023, an increase from the prior quarter but a decrease from a year earlier. The new foreclosure volume in the third quarter of 2023 is lower than pre-COVID-19 pandemic foreclosure volumes.

Servicers completed 7,436 modifications during the third quarter of 2023, a 13.8 percent decrease from the previous quarter’s 8,623 modifications. Of these 7,436 modifications, 6,367 or 85.6 percent, were “combination modifications”—modifications that included multiple actions affecting the affordability and sustainability of the loan, such as an interest rate reduction and a term extension.

The first-lien mortgages included in the OCC’s quarterly report comprise 22 percent of all residential mortgage debt outstanding in the United States or approximately 11.8 million loans totaling $2.7 trillion in principal balances.

For full report, please click the source link above.

Seasonal Influence Eases U.S. Foreclosure Activity, Marking Slight Decline

Posted on December 12, 2023 by Safeguard

Industry Update
December 11, 2023

Source: ATTOM

ATTOM, a leading curator of land, property, and real estate data, today released its November 2023 U.S. Foreclosure Market Report, which shows there were a total of 32,120 U.S. properties with foreclosure filings — default notices, scheduled auctions or bank repossessions – up 5 percent from a year ago, but down 7 percent from the prior month.

“While we’ve observed a modest decrease in U.S. foreclosure activity most likely due to seasonal factors, it’s essential to note that these fluctuations are a part of the cyclical nature of the market,” said Rob Barber, CEO at ATTOM. “As we look ahead to 2024, we anticipate a potential uptick in foreclosure activity as various economic factors evolve and market dynamics shift.

Highest foreclosure rates in Delaware, Maryland, and Ohio

Nationwide one in every 4,347 housing units had a foreclosure filing in November 2023. States with the highest foreclosure rates were in: Delaware (one in every 2,393 housing units with a foreclosure filing); Maryland (one in every 2,537 housing units); Ohio (one in every 2,656 housing units); South Carolina (one in every 2,771 housing units); and New Jersey (one in every 2,834 housing units).

Among the 223 metropolitan statistical areas with a population of at least 200,000, those with the highest foreclosure rates in November 2023 were Bakersfield, CA (one in every 1,595 housing units with a foreclosure filing); Cleveland, OH (one in every 1,818 housing units); Canton, OH (one in every 1,820 housing units); Columbia, SC (one in every 1,922 housing units); and Stockton, CA (one in every 1,961 housing units).

Those metropolitan areas with a population greater than 1 million, with the worst foreclosure rates in November 2023, including Cleveland, OH were: Philadelphia, PA (one in every 2,114 housing units); Baltimore, MD (one in every 2,206 housing units); Riverside, CA (one in every 2,327 housing units); and Las Vegas, NV (one in every 2,372 housing units).

For full report, please click the source link above.

Baltimore County Creates Portal to Identify Vacant Properties

Posted on December 6, 2023 by Safeguard

Industry Update
November 22, 2023

Source: baltimorefishbowl.com

Baltimore County has just made it easier to identify vacant properties with the release of a new data portal.

“Providing the public with the tools they need to identify—and now view—vacant properties is another step in our ongoing work to find and transform today’s blighted and abandoned properties into tomorrow’s housing opportunities,” said Baltimore County Executive Johnny Olszewski in a statement. “This portal continues our work to provide a more accessible and open government for everyone, including our first responders who will now have critical safety information about properties before arriving on the scene of a potential emergency.”

After Baltimore County passed the Vacant Structures law earlier this year, the county created its first-ever process to designate properties as “vacant.” The new law gives the Department of Permits, Approvals and Inspections the ability to identify vacant structures and maintain a running inventory of these vacant buildings. The law also authorizes the department to verify that the building complies with all applicable laws, and is not detrimental to the public health, safety, or a hazard to police officers or firefighters who might enter the structure in an emergency.

Since April, more than 160 properties have been identified and verified as vacant, and 10 have been resolved or remediated by either becoming occupied or being demolished.

“Having the ability to identify, inspect and monitor vacant structures in Baltimore County is a game changer for us in Code Enforcement, and this new portal is a great way to share important data with residents and first responders,” said Adam Whitlock, the county’s code enforcement chief, in a statement. “This process is yet another way we are able to coordinate efforts with County agencies to address issues and keep the public informed.”

For full report, please click the source link above.

Syracuse City Officials to Seek Bold New Powers to Promote More and Better Housing

Posted on December 6, 2023December 6, 2023 by Safeguard

Industry Update
November 28, 2023

Source: syracuse.com

Syracuse Mayor Ben Walsh wants to create a new arm of government that would allow the city to own and manage apartment buildings and help private homeowners fix up their homes.

Walsh has asked the city council to create a housing trust — a separate public authority with its own board and mission, and the power to issue bonds, make loans and award grants.

The goal is to boost quality, affordable housing in a city in crisis.

It would give the city game-changing powers to take on long-neglected housing problems that don’t fit the molds of other government programs. It comes at a time when quality housing is scarce and an increase in demand is imminent.

A study released in March exposed two related problems in Syracuse: Most residents can’t afford market-rate housing. And the cost to rehabilitate existing homes often exceeds their worth.

A survey of the more than 35,000 residential properties in Syracuse found that one-third showed signs of “chronic disinvestment,” syracuse.com | The Post-Standard reported in March.

Many of the existing nonprofit housing agencies and streams of funding are too specific to fix the problem — focusing, for example, on homelessness or lead paint remediation in homes with children, said Michelle Sczpanski, the city’s deputy commissioner of neighborhood development.

A housing trust could be flexible enough to build new housing and to encourage private landlords and homeowners to make improvements, city officials say.

The first step is to create the trust and accept a $5 million grant already awarded in last year’s state budget.

The next steps, defining the mission and identifying specific projects, are still in development.

For full report, please click the source link above.

Property Owners May Soon Pay Blight Fines

Posted on November 29, 2023 by Safeguard

Industry Update
November 27, 2023

Source: thedailyreview.com

Owners of vacant and blighted properties in Pennsylvania may soon have to pay annual fees that get more expensive with each passing year.

Where those fines will get levied, though, would depend on what local governments decide to do.

House Bill 775, sponsored by Rep. Tim Twardzik, R-Frackville, would let municipalities pass ordinances to register vacant and blighted properties, building a registry to track blight.

Owners would then pay registration fees a year after the property gets listed, starting at $500 and climbing to $5,000 for year nine and beyond. Fees would be waived if owners bring the property into compliance, and exemptions are made for owners in the process of repairing the property, seeking “in good faith” to sell it, or due to economic hardship.

Localities with existing registry programs would be grandfathered in.

For full report, please click the source link above.

Macomb County Officials Propose Establishing Land Bank Authority

Posted on November 29, 2023November 29, 2023 by Safeguard

Industry Update
November 24, 2023

Source: macombdaily.com

Macomb County officials are looking at forming a Land Bank Authority that would allow the county to obtain distressed properties, rehabilitate them and sell them so they can be put to good use.

Officials representing County Executive Mark Hackel’s administration and county Treasurer Larry Rocca appeared in front of the county Board of Commissioners recently asking the board to approve a resolution and an inter-governmental agreement with the state to set it up.

Officials told the board the program is a way to improve residential, commercial and industrial properties that no one else wants to own.

“We want to revitalize the property,” Paige Bachand, deputy treasurer of collections, told the board at the Nov. 14 meeting in the County Administration Building in Mount Clemens. “We want to return that property to a productive use so it generates taxes and we don’t have blight in the community. This is another tool that we have to revitalize those pieces of property.”

The proposal stems from a federal appeals court ruling in October 2022 in an Oakland County case that outlawed the past practice of allowing local communities to purchase foreclosed properties by merely paying the unpaid taxes. The communities then could rehabilitate and resell them.

Now, all properties must go to a public auction at which anybody can bid on them, and a second auction at which communities can purchase them. Some communities want no part of buying those properties, officials said.

“We’re targeting under-utilized properties, bringing in additional resources that communities right now can’t access, to enterprise those sites and to bring them back to active use in the community,” Deputy County Executive John Paul Rea said to commissioners.

One caveat that some commissioners complained about was that the authority must be approved and have a meeting by Dec. 31 in order to be eligible for state funds to help with projects.

For full report, please click the source link above.

Michael Greenbaum Takes Over as Property Preservation Executive Forum Chair

Posted on November 29, 2023 by Safeguard

Safeguard in the News
November 21, 2023

Source: DS News

Michael Greenbaum serves as the Chief Operating Officer of Safeguard Properties. He joined Safeguard in July 2010 as VP of REO and has continued to take on additional duties and responsibilities within the organization, including the role of VP of Operations in 2013 and then COO in 2015. He has spent the last 13 years with Safeguard, understanding and leading change within the property preservation sector, becoming a valued partner to clients by driving innovation and excellence within the industry. A distinguished graduate of West Point (U.S. Military Academy), Greenbaum majored in quantitative economics before serving in the U.S. Army, Ordinance Branch, and specializing in supply chain management. Prior to joining Safeguard, he spent the first 13 years of his post-Army career managing worldwide supply chains.

In September 2023, Greenbaum was nominated and voted in as Chair of Five Star’s Property Preservation Executive Forum (PPEF), an industry membership group that brings together leadership from the nation’s largest property preservation companies to promote best practices in the field services industry and devise solutions for the challenges that face it. (Five Star is the parent company of MortgagePoint.) MortgagePoint took some time to catch up with Greenbaum and discuss his recent appointment as Chair and what he hopes to prioritize during his term.

Q: How long have you been a member of the Property Preservation Executive Forum, and what leadership roles, if any, have you held throughout that time?
I have personally been a member for about seven years. I haven’t held any leadership roles previously but have always been an active contributor to the forum.

Q: Why is the PPEF and its work so important to the industry and to PPEF membership right now?
The Forum brings together some of the most thoughtful and passionate people in the industry. As I was working through a few issues with the group last month, I was trying to calculate the number of years of experience in the room and stopped counting when I got above 300 years.

Q: What are some top priorities or initiatives you will be pursuing as Chair?
Working with investors to define the issues facing servicers and property preservation companies. The investors and insurers are more than willing to help; they are just looking for good business problem definitions, defined approaches to solve, and probable benefits. Optimizing the Hazard Insurance claims process, revisiting inspection ordering logic or rules, fixing ad[1]dress issues, and working to ensure pricing stays competitive with the marketplace.

The field force is changing. The environment for local independent contractors is red hot. The expectation of an easy, intuitive software experience is an absolute requirement. This makes us market differently and has changed our communication approach to our field network tremendously. We understand we are 100% of service to vendors or they will go to the next best opportunity. The rest of the industry stays fairly consistent, in my opinion. The fundamentals of preserving and protecting homes have remained consistent for the last 30 years.

Q: What drives your commitment to your craft and industry?
I like to problem-solve and lead process change throughout our industry, which is very disjointed. I love the people that make up the industry—contractors especially, as well as thought leaders in the investor shops (Fannie Mae, Freddie Mac, USDA, VA, and FHA).

Q: What are some insights or at least one piece of advice you wish you would have known when you first started in the industry?
Be patient at times. People want to do what is right, and many entities have separate self-interests and goals. It takes many conversations to understand the different drivers and how to suggest changes that have a chance of being implemented.

Q: How has being a member of a trade association resulted in business growth for you?
Mainly in the relationships I have developed with peers and clients alike. Participating on panels has helped to open conversations throughout the industry. It means a lot to me to be able to present solutions to problems through these discussions, and then have clients approach after the session to discuss further. These interactions have developed into very meaningful, career-long relationships for me.

Q: What legacy industry impact would you most desire to be known for?
I just want to continue to help the industry by redefining approaches that are suboptimal: that lead to book loss, loss of property, or introduce audit risk to our clients’ shops.

At Safeguard, we have developed many programs that get used across the industry: 60 Day to Sale, NYDFS Property Review, FHA Post Sale Impediment Management, Open Order Marketplace for Vendors, Washington, and Maine State best practices, etc. We have a couple more ideas in the lab that I’m also very excited about.

Q: Are there any other important aspects of PPEF you’d like to spotlight?
I want this Forum to become the main problem-solving forum in the industry. There is a lot of buzz around it lately. I think people are starting to see that this committee is built to act. Not every initiative will be successful, and we may discover that existing rules and practices serve the collective interest best. But every member can be assured that those questions will be asked, and stones will be turned over and fully evaluated before we leave a topic.

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

ICE First Look at Mortgage Performance: Foreclosure Starts Rose in October Despite Serious Delinquencies Returning to 17-year Lows

Posted on November 27, 2023November 27, 2023 by Safeguard

Industry Update
November 22, 2023

Source: Black Knight, Inc.

Intercontinental Exchange, Inc. (NYSE:ICE), a leading global provider of data, technology, and market infrastructure, reports the following “first look” at October 2023 month-end mortgage performance statistics derived from its loan-level database representing the majority of the national mortgage market.

The national delinquency rate fell 3 basis points (bps) to 3.26% in October, marking a 9 bps (-2.8%) improvement from the same time last year

Serious delinquencies (90+ days past due) fell to 447K, once again hitting their lowest levels since 2006

Loans 30-days late also declined, marking the first such improvement in five months

Despite the improvement in delinquencies, foreclosure starts rose to 33K in October, hitting their highest levels in 18 months – while the number of foreclosure sales (completions) remained relatively flat

Active foreclosure inventory inched up 3K to 217K, but remains more than 25% below prepandemic levels

While foreclosure starts rose in October, near term risk remains muted, with serious delinquencies historically low and more than 70% of such loans protected from foreclosure by loss mitigation efforts

Prepay activity (measured as single-month mortality) dwindled to just 0.43% under continued seasonal pressure, despite interest rates easing somewhat from the prior month

For full report, please click the source link above.