Page 42 – Safeguard Properties

Metroplex Approves Funding to Remediate and Demolish Seven Vacant Buildings in Hamilton Hill Neighborhood

Posted on October 25, 2023 by Safeguard

Industry Update
October 18, 2023

The Metroplex Board of Directors has approved $550,000 in funding to remediate and then demolish seven vacant buildings in the Hamilton Hill neighborhood. The Capital Region Land Bank will then take title to the properties and work with two proven housing developers to construct new affordable housing for residents.

“This is a great example of the City’s codes and legal departments working hand in hand with Metroplex and the Land Bank to boost our neighborhoods,” said Mayor Gary McCarthy. “Not only are we clearing unsafe, vacant structures we are going to gain over $760,000 from the sale of these properties not to mention future revenues as we replace blight with new tax base,” McCarthy added.

The City of Schenectady won a judgement against the owner of the properties and will recoup over $760,000 once the sale is complete. A court appointed receiver has signed a purchase contract with the two developers to purchase the blighted buildings. Metroplex funding will be used to demolish the vacant boarded-up buildings and prep the sites for new development.

Richard Ruzzo, Chair of the Land Bank and a member of the Schenectady County Legislature said, “This takes the fight against blighted properties in Schenectady to a whole new level. We are pleased to join the city and Metroplex to move forward with this innovative private-public partnership that will add to the development momentum on Hamilton Hill.”

Recent investments total over $80 million including the Joseph Allen Apartments, the Hillside View development, Hillside Crossings and more.

For full report, please click the source link above.

Lawrence County Land Bank Shares Completion of Chesapeake Demolition Project

Posted on October 25, 2023 by Safeguard

Industry Update
October 18, 2023

Source: wsaz.com

A nearly four-acre property has now been completely cleaned out.

Last month, the Land Bank began demolishing 19 abandoned properties just off Township Road 287 near the Chesapeake Flea Market.

It’s a project the Lawrence County Land Bank says has been six years in the making.

The Land Bank worked together with the Health Department to make this cleanup possible. They say the homes have been a site for dumping trash, dead animals, needles, and even raw sewage.

The Lawrence County Land Bank, which currently owns the property, is working toward its next steps.

“In January, this property will be up for bid, with a starting bid of $50,000, so we are exploring different avenues for what this property could be,” Land Bank Director Marie McKenzie said.

The Land Bank says the property has garnered significant community interest, and once the bidding process is complete, they will have additional information on the future of the land.

For full report, please click the source link above.

Black Knight: Mortgage Delinquency Rate Increased in September

Posted on October 24, 2023 by Safeguard

Industry Update
October 23, 2023

Source: Calculated Risk Finance & Economics

According to Black Knight’s First Look report, the percent of loans delinquent increased 3.7% in September compared to August and increased 4.3% year-over-year.

Black Knight reported the U.S. mortgage delinquency rate (loans 30 or more days past due, but not in foreclosure) was 3.29% in August, up from 3.17% the previous month.

The percent of loans in the foreclosure process decreased in September to 0.40%, from 0.41% the previous month.

The number of delinquent properties, but not in foreclosure, is up 96,000 properties year-over-year, and the number of properties in the foreclosure process is down 13,000 properties year-over-year.

For full report, please click the source link above.

Freddie Mac Launches Tool that Matches Borrowers to Down Payment Assistance Programs

Posted on October 24, 2023 by Safeguard

Industry Update
October 18, 2023

Source: Mortgage Orb

Freddie Mac has launched DPA One, a new tool to help mortgage lenders quickly find and match borrowers to down payment assistance programs nationwide.

DPA One is an innovative new tool that aggregates and showcases down payment assistance programs in a single, standardized, insights-rich tool so lenders can quickly and efficiently access and compare programs to help make home possible for more families, Freddie Mac says in a release.

“Time and again research reveals that the down payment is the single largest hurdle first-time homebuyers need to overcome to attain homeownership. But finding and comparing the many programs and their guidelines is challenging,” says Sonu Mittal, single-family senior vice president of acquisitions for Freddie Mac. “DPA One delivers a one-stop shop at no cost that brings lenders and their borrowers greater detail and visibility into these programs, while seamlessly connecting the right assistance program with the lender, housing counselors and borrowers who need this assistance the most.”

For lenders and housing counselors, DPA One makes it easy to enter client eligibility parameters, quickly receive and compare appropriately matched programs, and download results to immediately share with clients for easy reference. By comparing up to three programs at a time side-by-side, lenders can review and make faster and more informed decisions on programs they would like to pursue to help their clients.

For full report, please click the source link above.

FEMA Major Disaster Declaration – Agua Caliente Band of Cahuilla Indians Tropical Storm Hilary

Posted on October 20, 2023October 23, 2023 by Safeguard

FEMA Alert
October 18, 2023

FEMA has issued a Major Disaster Declaration for the Agua Caliente Band of Cahuilla Indians to supplement tribal recovery efforts in the areas affected by Tropical Storm Hilary from August 19-21, 2023.

Public Assistance:

Agua Caliente Band of Cahuilla Indians

***Please note, only properties located within the Agua Caliente Band of Cahuilla Indians Reservation are eligible for assistance.***

Agua Caliente Band of Cahuilla Indians Tropical Storm Hilary (DR-4746-CA)

President Joseph R. Biden, Jr. Approves Major Disaster Declaration for Agua Caliente Band of Cahuilla Indians

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

U.S. Foreclosure Activity Shows Continued Rise in Third Quarter

Posted on October 18, 2023 by Safeguard

Industry Update
October 12, 2023

Source: ATTOM Data

ATTOM, a leading curator of land, property, and real estate data, released its Q3 2023 U.S. Foreclosure Market Report, which shows there were a total of 124,539 U.S. properties with foreclosure filings — default notices, scheduled auctions or bank repossessions — up 28 percent from the previous quarter and 34 percent from a year ago.

The report also shows there were a total of 37,679 U.S. properties with foreclosure filings in September 2023, up 11 percent from the previous month and up 18 percent from September 2022.

Foreclosure starts tick upwards from last year

Lenders started the foreclosure process on 68,961 U.S. properties in Q3 2023, down 1 percent from the previous quarter but up 3 percent from a year ago — nearly reaching pre-pandemic levels.

States that had 1,000 or more foreclosure starts in Q3 2023 and saw the greatest annual increases were North Carolina (up 53 percent); Louisiana (up 47 percent); Pennsylvania (up 24 percent); Alabama (up 18 percent); and Nevada (up 16 percent).

“Foreclosures are on the rise again this quarter, as indicated by our latest foreclosure numbers,” said Rob Barber, CEO at ATTOM. ” The number of new cases filed by lenders in the third quarter did rise just a small amount from the same period last year and actually dipped a bit quarterly – signs that the upward pattern may be easing. But foreclosure starts are nearly back to where they were two years ago when the federal government lifted a pandemic-related moratorium on most foreclosure filings. This rise in foreclosures might also be attributed to pending filings finally processing. Even with the national economic upturn and job stability, it’s evident that some homeowners are still grappling with the pandemic’s financial aftermath or encountering new challenges.”

Among the 223 metropolitan statistical areas analyzed in the report those that posted the greatest number of foreclosure starts in Q3 2023, included New York, New York (4,514 foreclosure starts); Chicago, Illinois (2,584 foreclosure starts); Houston, Texas (2,279 foreclosure starts); Los Angeles, California (2,273 foreclosure starts); and Philadelphia, Pennsylvania (2,104 foreclosure starts).

Counter to the national trend of annual increases, among those metropolitan areas with a population greater than one million that saw a decline in foreclosure starts in Q3 2023 were Salt Lake City, Utah (down 74 percent); Chicago, Illinois (down 35 percent); Kansas City, Missouri (down 34 percent); Columbus, Ohio (down 22 percent); and Milwaukee, Wisconsin (down 21 percent).

For full report, please click the source link above.

Mortgage Lenders Can Now Count Income from ADUs When Underwriting FHA Loans

Posted on October 18, 2023 by Safeguard

Industry Update
October 16, 2023

Source: Mortgage Orb

Mortgage lenders can now count income from accessory dwellings when underwriting Federal Housing Administration (FHA) loans.

The new policy aims to “help households of more modest means maximize the potential benefits of homeownership to build wealth,” says Julia Gordon, assistant secretary for housing and federal housing commissioner for the U.S. Department of Housing and Urban Development, in a statement. “This new policy also contributes to the supply of affordable housing in many neighborhoods where it’s most needed and least available.”

The new rule allows lenders to count income from small units of housing built inside, attached to, or on the same property as a primary residence.

By allowing the inclusion of rental income from the accessory dwelling unit (ADU) in the borrower’s qualifying income, more borrowers will be able to qualify for FHA financing.

The new rule – which supports the Biden-Harris Administration’s Housing Supply Action Plan – will also help incentivize more homeowners to provide more private rental housing.

For full report, please click the source link above.

Share of Mortgage Loans in Forbearance Decreases to .31% in September

Posted on October 18, 2023 by Safeguard

Industry Update
October 16, 2023

Source: Mortgage Bankers Association

The Mortgage Bankers Association’s (MBA) monthly Loan Monitoring Survey revealed that the total number of loans now in forbearance decreased by 2 basis points from 0.33% of servicers’ portfolio volume in the prior month to 0.31% as of September 30, 2023. According to MBA’s estimate, 155,000 homeowners are in forbearance plans. Mortgage servicers have provided forbearance to approximately 8 million borrowers since March 2020.

In September 2023, the share of Fannie Mae and Freddie Mac loans in forbearance decreased 1 basis point to 0.18%. Ginnie Mae loans in forbearance decreased 8 basis points to 0.57%, and the forbearance share for portfolio loans and private-label securities (PLS) decreased 4 basis points to 0.35%.

“The number of loans in forbearance dropped in September, but the overall performance of servicing portfolios and loan workouts declined slightly,” said Marina Walsh, CMB, MBA’s Vice President of Industry Analysis. “MBA’s baseline forecast has a recession in the first half of 2024. Several factors – including unemployment increases, rising property taxes and insurance, the resumption of student debt payments, and possible natural disasters – may affect loan performance in future months.”

For full report, please click the source link above.

FHFA Takes Further Steps to Reduce Loan Repurchase Requests

Posted on October 18, 2023 by Safeguard

Industry Update
October 16, 2023

Source: Mortgage Orb

The Federal Housing Finance Agency (FHFA) is taking further action to reduce repurchase requests from Fannie Mae and Freddie Mac, which spiked in 2022 and remained elevated throughout most of 2023.

As part of that effort, the agency is revising its loan repurchase policies for active single-family mortgages for which borrowers elected a COVID-19 forbearance.

Under the updated rep and warrant policies, which take effect on October 31, loans for which borrowers elected a COVID-19 forbearance will be treated similarly to loans for which borrowers obtained forbearance due to a natural disaster.

As a result, loans with a COVID-19 forbearance will remain eligible for certain rep and warrant relief based on the borrower’s payment history over the first 36 months following origination.

“Forbearance was an invaluable tool for borrowers experiencing financial hardship due to the COVID-19 pandemic,” says Sandra L. Thompson, director of FHFA, in a statement. “Servicers went to great lengths to implement forbearance quickly amid a national emergency, and the loans they service should not be subject to greater repurchase risk simply because a borrower was impacted by the pandemic.”

For full report, please click the source link above.

FEMA Major Disaster Declaration – Montana Flooding

Posted on October 13, 2023 by Safeguard

FEMA Alert
October 11, 2023

FEMA has issued a Major Disaster Declaration for areas of the state of Montana to supplement state, tribal and local recovery efforts in the areas affected by flooding from June 1-8, 2023. The following counties have been approved for Public Assistance.

Public Assistance: