Page 58 – Safeguard Properties

FEMA Major Disaster Declaration – Soboba Band of Luiseno Indians Severe Winter Storm and Flooding

Posted on May 19, 2023May 19, 2023 by Safeguard

FEMA Alert
May 18, 2023

FEMA has issued a Major Disaster Declaration for the Soboba Indian Reservation in California to supplement tribal recovery efforts in areas affected by a severe winter storm and flooding from February 23-26, 2023. The following areas have been approved for assistance:

Public Assistance:

Soboba Indian Reservation

Soboba Band of Luiseno Indians Severe Winter Storm and Flooding (DR-4713)

List of Affected Zip Codes

Please note: Only properties located in the Soboba Indian Reservation are approved for assistance under declaration DR-4713-CA.

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

HUD Announces more than $837 Million to Improve Housing Quality and Reduce Energy Costs for Underserved Communities

Posted on May 18, 2023 by Safeguard

Industry Update
May 11, 2023

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

The U.S. Department of Housing and Urban Development (HUD) has announced the availability of new funding through the Green and Resilient Retrofit Program (GRRP) to reduce greenhouse gas emissions and improve the energy and water efficiency and climate resilience of HUD-assisted multifamily properties serving low-income residents. HUD Secretary Marcia L. Fudge will made this announcement in Center Line, Michigan alongside Senior Advisor to the President for Clean Energy Innovation and Implementation John Podesta.

The Inflation Reduction Act provided HUD with $837.5 million in grant and loan subsidy funding and $4 billion in loan commitment authority for this new program. The law also includes $42.5 million for a new HUD initiative launching later this summer to collect and assess energy and water usage data from HUD-assisted multifamily housing properties to better target opportunities to save energy and water, cut costs, and reduce emissions. This announcement is part of President Biden’s Investing in America agenda to rebuild the economy from the bottom up and the middle out.

“Under the leadership of President Biden, HUD is committed to building a more equitable and sustainable housing system and making necessary investments to reduce the impacts of climate change and improve the lives of people across America,” said HUD Secretary Marcia L. Fudge. “The launch of the Green and Resilient Retrofit Program today will ensure low-income individuals and families have better access to healthy, energy efficient, and resilient homes.”

“Lower-income communities are often the last to obtain access to state-of-the-art efficiency, resilience, and clean energy technologies. The Green and Resilient Retrofit Program will change this by providing communities with an opportunity to lead the multifamily sector in retrofitting homes to make them safer and more sustainable for the future,” said HUD Assistant Secretary for Housing Julia Gordon.

“HUD’s new investment from the Inflation Reduction Act shows that clean energy is for everyone. This funding will bring the cost savings and health benefits of clean energy to families in HUD-assisted multifamily housing,” said John Podesta, Senior Advisor to the President for Clean Energy Innovation and Implementation. “Today’s announcement is part of a larger set of actions that the White House is announcing today on housing and climate because we know that building our clean energy economy and providing quality, affordable housing for American families go hand-in-hand.”

For full report, please click the source link above.

Foreclosure Activity Nationwide Shows Slight Decline in April 2023

Posted on May 18, 2023May 18, 2023 by Safeguard

Industry Update
May 11, 2023

Source: ATTOM

ATTOM, a leading curator of land, property, and real estate data, today released its April 2023 U.S. Foreclosure Market Report, which shows there were a total of 32,977 U.S. properties with foreclosure filings — default notices, scheduled auctions or bank repossessions — down 10 percent from a month ago but up 8 percent from a year ago.

Illinois, Maryland, and New Jersey post highest foreclosure rates

Nationwide one in every 4,234 housing units had a foreclosure filing in April 2023. States with the highest foreclosure rates were Illinois (one in every 2,221 housing units with a foreclosure filing); Maryland (one in every 2,283 housing units); New Jersey (one in every 2,334 housing units); South Carolina (one in every 2,495 housing units); and Delaware (one in every 2,603 housing units).

Among the 223 metropolitan statistical areas with a population of at least 200,000, those with the highest foreclosure rates in April 2023 were Atlantic City, NJ (one in every 1,356 housing units with a foreclosure filing); Cleveland, OH (one in every 1,580 housing units); Lakeland, FL (one in every 1,649 housing units); Columbia, SC (one in every 1,651 housing units); and Chicago, IL (one in every 1,950 housing units).

“Foreclosure activity continues to stabilize and even correct itself in 2023, with April showing a 10 percent decrease in overall activity after a 20 percent increase last month,” said Rob Barber, chief executive officer at ATTOM. “While there is no apparent indication of a continued decline in the number of foreclosures, it’s important to note that the month of April typically exhibits a recurring trend of decreased activity. However, this trend underscores the significance of monitoring foreclosure rates and identifying any potential market shifts or trends.”

Among those metropolitan areas with a population greater than 1 million, those with the worst foreclosure rates in April 2023, aside from Cleveland, OH and Chicago, IL, included: Riverside, CA (one in every 2,046 housing units); Philadelphia, PA (one in every 2,079 housing units); and Jacksonville, FL (one in every 2,091 housing units).

For full report, please click the source link above.

Share of Mortgage Loans in Forbearance Decreases to .51% in April

Posted on May 18, 2023May 18, 2023 by Safeguard

Industry Update
May 15, 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 4 basis points from 0.55% of servicers’ portfolio volume in the prior month to 0.51% as of April 30, 2023. According to MBA’s estimate, 255,000 homeowners are in forbearance plans. Mortgage servicers have provided forbearance to approximately 7.8 million borrowers since April 2020.

In April 2023, the share of Fannie Mae and Freddie Mac loans in forbearance decreased 2 basis points to 0.24%. Ginnie Mae loans in forbearance decreased 7 basis points to 1.11%, and the forbearance share for portfolio loans and private-label securities (PLS) decreased 7 basis points to 0.61%.

“While the number of loans in forbearance continues to dwindle, there was some deterioration in the performance of post-forbearance workouts,” said Marina Walsh, CMB, MBA’s Vice President of Industry Analysis. “About three out of four borrowers are remaining current on their post-forbearance workouts, but this is down from the average of four out of five borrowers that was relatively consistent in 2022 and into 2023.”

Added Walsh, “Overall servicing portfolios remain healthy, and some of the worsening monthly performance can be attributed to seasonal factors such as tax refunds that pushed up the March results and then normalized in April. MBA’s forecast calls for an economic slowdown and an increase in unemployment later this year and into 2024, which will impact loan performance.”

For full report, please click the source link above.

FEMA Fire Management Assistance Declaration – New Mexico Las Tusas Fire

Posted on May 12, 2023 by Safeguard

FEMA Alert
May 10, 2023

FEMA has issued a Fire Management Assistance Declaration for the state of New Mexico to supplement state, tribal and local response efforts in areas affected by the Las Tusas Fire beginning May 10, 2023 and continuing. The following areas have been approved for assistance:

Public Assistance:

Mora
San Miguel

New Mexico Las Tusas Fire (FM-5465-NM)

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

Mortgage Delinquency Rate in First-Quarter 2023 Declines to Second-Lowest Level in MBA’s Survey

Posted on May 11, 2023May 11, 2023 by Safeguard

Industry Update
May 11, 2023

Source: Mortgage Bankers Association

The delinquency rate for mortgage loans on one-to-four-unit residential properties decreased to a seasonally adjusted rate of 3.56 percent of all loans outstanding at the end of the first quarter of 2023, according to the Mortgage Bankers Association’s (MBA) National Delinquency Survey.

The delinquency rate was down 40 basis points from the fourth quarter of 2022 and down 55 basis points from one year ago. The percentage of loans on which foreclosure actions were started in the first quarter rose by 2 basis points to 0.16 percent.

“The mortgage delinquency rate fell to its lowest level for any first quarter since MBA’s survey began in 1979 and was the second lowest quarterly rate overall, just 11 basis points above the survey low in the third quarter of 2022,” said Marina Walsh, CMB, MBA’s Vice President of Industry Analysis. “Mortgage delinquencies and the unemployment rate continue to track each other closely, with the unemployment rate in April falling back to the 54-year low of 3.4 percent set in January.”

Added Walsh, “Consistent with the resilient job market, the performance of existing mortgages is exceeding expectations. Across all states, there was an improvement in the first quarter compared to one year ago. Year-over-year delinquencies for all product types – FHA, VA, and conventional – were also down.”

For full report, please click the source link above.

Fannie REO Inventory Essentially Unchanged in Q1

Posted on May 11, 2023May 11, 2023 by Safeguard

Industry Update
May 8, 2023

Source: CalculatedRisk

Fannie reported results for Q1 2023. Here is some information on single-family Real Estate Owned (REOs).

Foreclosure have increased slightly since the end of the foreclosure moratorium.

Fannie Mae reported the number of REOs increased to 8,780 at the end of Q1 2023, essentially unchanged from 8,779 in Q4 2022, and up 18% from 7,430 at the end of Q1 2022.

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

For full report, please click the source link above.

HUD Allocated $382 Million to Help States Produce Affordable Housing

Posted on May 11, 2023May 11, 2023 by Safeguard

Industry Update
May 3, 2023

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

The U.S. Department of Housing and Urban Development (HUD) allocated $382 million through the nation’s Housing Trust Fund (see list of state allocations below). The Housing Trust Fund (HTF) is an affordable housing production program that complements existing Federal, state and local efforts to increase and preserve the supply of decent, safe, and sanitary affordable housing for extremely low- and very low-income households, including families experiencing homelessness.

“We’re proud to invest in states to create more affordable housing,” said HUD Secretary Marcia L. Fudge. “The Biden-Harris Administration is committed to improving the nation’s housing affordability crisis and the Housing Trust Fund provides communities resources they need to produce more safe, sustainable and affordable housing.”

HTF is a formula-based program for States and U.S. Territories. By law, each state is allocated a minimum of $3 million. State affordable housing planners will use these funds for the following eligible activities:

Real property acquisition
Site improvements and development hard costs
Related soft costs
Demolition
Financing costs
Relocation assistance
Operating cost assistance for rental housing (up to 30% of each grant)
Reasonable administrative and planning costs.

The Housing Trust Fund is being capitalized through contributions made by Fannie Mae and Freddie Mac. In December 2014, the Federal Housing Finance Agency (FHFA) directed these Government Sponsored Enterprises (GSEs) to begin setting aside and allocating funds to the Housing Trust Fund. The Housing Trust Fund helps to strengthen and broaden the Federal housing safety net for people in need by increasing production of, and access to, affordable housing for the nation’s most vulnerable populations. One hundred percent of funds must be used for extremely low-income families. This targeting ensures the priority of this program is helping those with the greatest needs.

For full report, please click the source link above.

FHFA Announces Rescission of Enterprise Upfront Fees Based on Debt-To-Income Ratio

Posted on May 11, 2023 by Safeguard

Industry Update
May 10, 2023

Source: Federal Housing Finance Agency

The Federal Housing Finance Agency (FHFA) announced that it has rescinded the upfront fees based on borrowers’ DTI ratios for loans acquired by Fannie Mae and Freddie Mac (the Enterprises). FHFA announced in March it would delay implementation in order to engage with industry stakeholders and better understand their concerns.

“I appreciate the feedback FHFA has received from the mortgage industry and other market participants about the challenges of implementing the DTI ratio-based fee,” said Director Sandra L. Thompson. “To continue this valuable dialogue, FHFA will provide additional transparency on the process for setting the Enterprises’ single-family guarantee fees and will request public input on this issue.”

Consistent with the Enterprise Regulatory Capital Framework finalized in 2020, appropriately capitalizing each Enterprise is critical to ensuring that they are well positioned to meet their mandate of providing liquidity and stability to the secondary mortgage market and supporting access to affordable mortgage credit throughout the nation.

Additional details about the upcoming Request for Input (RFI) on the single-family guarantee fee pricing framework will be released shortly.

For full report, please click the source link above.

FEMA Major Disaster Declaration – Kentucky Severe Storms, Straight-line Winds, Flooding, Landslides and Mudslides

Posted on May 10, 2023 by Safeguard

FEMA Alert
May 9, 2023

FEMA has issued a Major Disaster Declaration for the state of Kentucky to supplement state, tribal and local recovery efforts in areas affected by severe storms, straight-line winds, flooding, landslides and mudslides from February 15-20, 2023. The following areas have been approved for assistance:

Public Assistance: