Safeguard Properties

Share of Mortgage Loans in Forbearance Remains at .22% in April

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Industry Update
May 20, 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 April 30, 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 April 2024, the share of Fannie Mae and Freddie Mac loans in forbearance declined 1 basis point to 0.11%.  Ginnie Mae loans in forbearance dropped 1 basis point to 0.39%, and the forbearance share for portfolio loans and private-label securities (PLS) stayed the same at 0.31%.

“The number of loans in forbearance has remained stagnant for the first four months of 2024,” said Marina Walsh, CMB, MBA’s Vice President of Industry Analysis. “While forbearance is still a viable option for homeowners needing temporary mortgage payment relief, its usage has diminished without a major natural disaster or labor market downturn. Moreover, the performance of servicing portfolios and post-forbearance workouts remains strong, despite some fluctuations from month-to-month.”

For full report, please click the source link above.

 

FEMA Major Disaster Declaration – Texas Severe Storms, Straight-line Winds, Tornadoes, and Flooding

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FEMA Alert
May 17, 2024  

***LAST UPDATED: 7/16/24***

FEMA has issued a Major Disaster Declaration for the state of Texas to supplement state, tribal, and local recovery efforts in areas affected by severe storms, straight-line winds, tornadoes and flooding beginning April 26, 2024 and continuing.  The following counties have been approved for assistance:

Individual Assistance:

  • Anderson
  • Austin
  • Bell
  • Calhoun
  • Collin
  • Cooke
  • Coryell
  • Dallas
  • Denton
  • Eastland
  • Ellis
  • Falls
  • Guadalupe
  • Hardin
  • Harris
  • Henderson
  • Hockley
  • Jasper
  • Jones
  • Kaufman
  • Lamar
  • Leon
  • Liberty
  • Montague
  • Montgomery
  • Nacogdoches
  • Navarro
  • Newton
  • Panola
  • Polk
  • Rusk
  • Sabine
  • San Jacinto
  • Smith
  • Terrell
  • Trinity
  • Tyler
  • Van Zandt
  • Walker
  • Waller

Public Assistance:

  • Anderson
  • Austin
  • Baylor
  • Bell
  • Bosque
  • Brown
  • Caldwell
  • Calhoun
  • Clay
  • Cochran
  • Coke
  • Coleman
  • Concho
  • Cooke
  • Coryell
  • Delta
  • Eastland
  • Falls
  • Fannin
  • Freestone
  • Grimes
  • Hamilton
  • Hardin
  • Harris
  • Henderson
  • Hockley
  • Houston
  • Jasper
  • Kaufman
  • Lamar
  • Lampasas
  • Lee
  • Leon
  • Liberty
  • Limestone
  • Lynn
  • Madison
  • Milam
  • Mills
  • Montgomery
  • Newton
  • Panola
  • Polk
  • Robertson
  • Rockwall
  • Rusk
  • San Augustine
  • San Jacinto
  • San Saba
  • Shelby
  • Sterling
  • Terrell
  • Trinity
  • Tyler
  • Van Zandt
  • Walker
  • Waller
  • Washington

 

Texas Severe Storms, Straight-line Winds, Tornadoes and Flooding (DR-4781-TX)

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

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 – Massachusetts Severe Storms and Flooding

Posted on by Safeguard

FEMA Alert
May 15, 2024  

FEMA has issued a Major Disaster Declaration for the state of Massachusetts to supplement state, tribal, and local recovery efforts in areas affected by severe storms and flooding from September 11-13, 2023.  The following counties have been approved for assistance:

Individual Assistance:

  • Bristol
  • Worcester

 

Massachusetts Severe Storms and Flooding (DR-4780-MA)

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

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

Statement of Director Sandra L. Thompson on the FSOC Nonbank Mortgage Servicing Report

Posted on by Safeguard

Industry Update
May 10 , 2024

Source: Federal Housing Finance Agency

I commend the Financial Stability Oversight Council (FSOC) for the publication of its report on nonbank mortgage servicing. This report advances the work of federal and state agencies with oversight responsibility of the mortgage market, identifies vulnerabilities specific to nonbank mortgage servicing business models, and presents robust recommendations to foster financial stability. The Federal Housing Finance Agency (FHFA) is regulator and conservator of Fannie Mae and Freddie Mac (the Enterprises), and nonbank mortgage servicers are important counterparties to the Enterprises.

The growth of nonbank mortgage servicers over the past decade has shifted market dynamics and highlighted the need for increased collaboration and coordination among regulators. The FSOC report calls attention to the strengths of nonbank mortgage servicers, including their commitment to the mortgage market and to supporting sustainable homeownership for historically underserved populations, along with several structural vulnerabilities. These vulnerabilities include liquidity risk, leverage, asset concentration, and operational risk, each of which could amplify and transmit mortgage market shocks to other financial market participants and to consumers.

To address these vulnerabilities, the FSOC report includes several recommendations that would enhance its member agencies’ oversight authorities, enable better information sharing, and provide for improved liquidity risk management by industry participants. Taken together, I believe these recommendations will reduce the risk of consumer harm or financial market contagion in the event of material financial stress at one or more nonbank mortgage servicers.

I am particularly encouraged that the FSOC recommends Congress consider providing FHFA with additional authority to establish appropriate safety and soundness standards for nonbank mortgage servicing and to directly examine for compliance with these standards. Such authority would give FHFA greater ability to manage the risks identified in the FSOC report and support broader financial stability.

FHFA is committed to ensuring the safety and soundness of, and responsible market conduct by, our regulated entities. FHFA will continue these efforts as we fulfill our statutory responsibilities and carry out the recommendations in the FSOC report to the greatest extent possible. I welcome FSOC’s focus on the growth of the nonbank mortgage servicing sector and encourage Congress to consider those recommendations in the report which require legislation to fully implement.​

 

For full report, please click the source link above.

 

Sam Valverde in Seat as Acting President of Ginnie Mae

Posted on by Safeguard

Industry Update
May 9, 2024

Source: Ginnie Mae

Effective May 6th, Sam Valverde entered the role of Acting President of Ginnie Mae. Mr. Valverde previously served as the organization’s Principal Executive Vice President since January 2023.

He began his tenure at Ginnie Mae in March 2022 to serve as the Executive Vice President and Chief Operating Officer. As Acting President, Mr. Valverde leads Ginnie Mae’s mission to link the United States housing market to the global capital markets, thus providing low-cost financing for federal housing programs and making affordable housing a reality for millions of Americans. He brings more than 15 years of housing finance, policy, and legal experience to Ginnie Mae. Across his career in public service, he has worked to develop market-based solutions to improve economic outcomes for all Americans.

Prior to joining Ginnie Mae, Mr. Valverde was most recently Supervisory Attorney Advisor at the Federal Housing Finance Agency (FHFA) in the Division of Conservatorship Oversight and Readiness. In that role, he led agency-wide projects intended to support greater access to mortgage credit and affordable rental opportunities for working families.

Prior to joining public service, Mr. Valverde began his career as a securities lawyer at Davis Polk & Wardell LLP. Mr. Valverde received his J.D. from Yale Law School and an A.B. from Dartmouth College.

Additional information about Ginnie Mae is available at www.ginniemae.gov and on X (formerly Twitter), YouTube, Facebook, and LinkedIn.

 

For full report, please click the source link above.

 

Foreclosure Activity Nationwide Shows Slight Decline in April 2024

Posted on by Safeguard

Industry Update
May 15, 2024

Source: ATTOM

ATTOM, a leading curator of land, property, and real estate data, today released its April 2024 U.S. Foreclosure Market Report, which shows there were a total of 31,649 U.S. properties with foreclosure filings — default notices, scheduled auctions or bank repossessions — down 4 percent from a month ago and down 4 percent from a year ago.

“April’s foreclosure numbers highlight a mixed landscape in the U.S. housing market,” said Rob Barber, CEO at ATTOM. “While there is a general downtrend in foreclosure starts and filings, we have also seen an increase in completed foreclosures. This mixed activity underscores the importance of closely monitoring these developments to understand the ongoing dynamics in the real estate market.”

Maryland, Illinois, and Nevada post highest foreclosure rates

Nationwide one in every 4,453 housing units had a foreclosure filing in April 2024. States with the highest foreclosure rates were Maryland (one in every 2,214 housing units with a foreclosure filing); Illinois (one in every 2,517 housing units); Nevada (one in every 2,546 housing units); South Carolina (one in every 2,573 housing units); and Florida (one in every 2,854 housing units).

Among the 224 metropolitan statistical areas with a population of at least 200,000, those with the highest foreclosure rates in April 2024 were Elkhart, IN (one in every 1,565 housing units with a foreclosure filing); Columbia, SC (one in every 1,689 housing units); Cleveland, OH (one in every 1,859 housing units); Lakeland, FL (one in every 1,861 housing units); and Flint, MI (one in every 1,998 housing units).

Among those metropolitan areas with a population greater than 1 million, those with the worst foreclosure rates in April 2024, aside from Cleveland, OH, included: Baltimore, MD (one in every 2,096 housing units); Chicago, IL (one in every 2,189 housing units); Orlando, FL (one in every 2,199 housing units); and Jacksonville, FL (one in every 2,237 housing units).

 

For full report, please click the source link above.

 

FEMA Major Disaster Declaration – Iowa Severe Storms and Tornadoes

Posted on by Safeguard

FEMA Alert
May 14, 2024  

FEMA has issued a Major Disaster Declaration for the state of Iowa to supplement state, tribal, and local recovery efforts in areas affected by severe storms and tornadoes from April 26-27, 2024.  The following counties have been approved for assistance:

Individual Assistance:

  • Clarke
  • Harrison
  • Mills
  • Polk
  • Pottawattamie
  • Ringgold
  • Shelby
  • Union

 

Iowa Severe Storms and Tornadoes (DR-4779-IA)

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

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

HUD Issues Fair Housing Act Guidance on Applications of Artificial Intelligence

Posted on by Safeguard

Industry Update
May 2, 2024

Source: US Department of Housing and Urban Development

The U.S. Department of Housing and Urban Development (HUD) released two guidance documents addressing the application of the Fair Housing Act to two areas in which the use of artificial intelligence poses particular concerns: the tenant screening process and its application to the advertising of housing opportunities through online platforms that use targeted ads. Today’s announcement is in accordance with President Joe Biden’s Executive Order, which called on HUD to provide guidance to combat discrimination enabled by automated or algorithmic tools used to make decisions about access to housing and in other real estate-related transactions.

“Under this Administration, HUD is committed to fully enforcing the Fair Housing Act and rooting out all forms of discrimination in housing,” said HUD Acting Secretary Adrianne Todman. “Today, we have released new guidance to ensure that our partners in the private sector who utilize artificial intelligence and algorithms are aware of how the Fair Housing Act applies to these practices.”

“The Fair Housing Act prohibits discrimination on the basis of race, color, national origin, religion, sex (including gender and sexual orientation), disability, and familial status,” said Demetria McCain, Principal Deputy Assistant Secretary Fair Housing and Equal Opportunity. “Housing providers, tenant screening companies, advertisers, and online platforms should be aware that the Fair Housing Act applies to tenant screening and the advertising of housing, including when artificial intelligence and algorithms are used to perform these functions.”

The tenant screening guidance describes fair housing issues created by tenant screening practices, including the increasing use of third-party screening companies to aid with tenant screening decisions and the emerging use of machine learning and artificial intelligence. The guidance also suggests best practices for fair, transparent, and non-discriminatory tenant screening policies, for both housing providers and companies that offer tenant screening services.

 

For full report, please click the source link above.

 

HUD Extends Additional Relief to Borrowers in Maui, HI

Posted on by Safeguard

Industry Update
May 6, 2024

Source: US Department of Housing and Urban Development

The U.S. Department of Housing and Urban Development (HUD), through the Federal Housing Administration (FHA), announced it is extending its foreclosure moratorium for borrowers with FHA-insured mortgages in Maui County, HI, through August 4, 2024. FHA is taking this action due to the extent of the devastation from the wildfires, the reduced capacity for borrowers to access needed resources, and the unique challenges associated with the geographic location of Maui. The extension will provide affected borrowers more time to obtain federal, state, and local assistance, to work with a HUD-certified housing counselor, and/or to rebuild without the added burden of dealing with foreclosure actions. FHA’s foreclosure moratorium for Maui County has been in place for eight months and was set to expire on May 6, 2024.

“This past September, I visited Maui and saw the damage that wildfires inflicted on homes, communities, and families. I also met with local officials, ensuring them that HUD and the entire Biden-Harris Administration is with them for the long haul,” said HUD Acting Secretary Adrianne Todman. “Today, we are extending our foreclosure moratorium once again, assuring Maui homeowners that HUD continues to support their full recovery from this disaster.”

“We’ve extended the foreclosure moratorium in Maui County, a county that experienced extreme devastation,” said Federal Housing Commissioner Julia Gordon. “We remain committed to doing all that we can to help the residents of Maui County recover from this disaster.”

With this extension, FHA is instructing mortgage servicers that they must not initiate new, or continue with existing, foreclosure actions on FHA-insured single family forward mortgages and Home Equity Conversion Mortgages for properties located in Maui County.

 

For full report, please click the source link above.

 

Fannie “Real Estate Owned” Inventory Decreased in Q1 2024

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Industry Update
May 6, 2024

Source: Calculated Risk

Fannie reported results for Q1 2024. Here is some information on single-family Real Estate Owned (REOs).

Fannie Mae reported the number of REOs decreased to 7,791 at the end of Q1 2024, down 5% from 8,403 at the end of the previous quarter, and down 9% year-over-year from Q1 2023.

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 there will not be a huge wave of foreclosures.

 

For full report, please click the source link above.