Safeguard Properties

Proposed Seattle Vacant Building Demolition Bill Could Cost City Up to $500K

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One Community Update
April 24, 2024

Source: The Gazette

An emergency bill to allow the Seattle Fire Department to conduct demolition of unsafe vacant buildings in Seattle would cost the city up to $500,000 this year before potential reimbursements.

The emergency legislation was proposed by Seattle Mayor Bruce Harrell on Thursday. The Seattle Public Safety Committee was briefed on the proposed bill on Tuesday.

Harrell’s emergency legislation comes as a result of the number of fires in vacant buildings surging in recent years. According to Harrell’s office, there were 77 vacant building fires in 2021, 91 in 2022, and 130 in 2023. Three of the 130 fires were deadly.

Through April 15, there have been 30 fires in vacant buildings in 2024.

According to a fiscal note, the city would have to develop a blanket contract with several vendors if the bill is passed and the city fire code is amended. The costs associated could range from $350,000 to $500,000 this year.

According to Seattle Fire Chief Harold Scoggins, the legislation would push owners of the vacant properties to comply with the city’s fire code, and reimburse the city for the associated expenditures. Scoggins noted that some property owners fail to comply with the city.

“It is our hope that this legislation will help property owners come into compliance, but we are realists also because we have been managing this challenge for quite a while,” Scoggins said at the committee meeting. “We do have some properties that we just don’t hear from.”

If property owners do not pay for the costs associated with demolition, the city will place a title lien on the property to cover abatement work costs, which can vary significantly depending on the size of the building, degree of damage, the presence of asbestos and other conditions.

According to a fiscal note, revenues may not be received in the same fiscal year as expenditures occur, and could require multi-year support for the bill until reimbursement is received.

“There is not currently a guarantee of financial recovery,” the fiscal note states.

Vacant buildings that do not meet city standards or are in the development process currently get placed in a vacant building monitoring program. If the city cleans up or closes a property on behalf of the property owner, they are billed for the costs. Fees for monitoring vacant buildings range from $271.85 to $542.60 per month, depending on condition.

 

For full report, please click the source link above.

Ginnie Mae President Alanna McCargo Announces Resignation

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Industry Update
April 19, 2024

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

The U.S. Department of Housing and Urban Development (HUD) announced that Alanna McCargo, President of the Government National Mortgage Association (Ginnie Mae) will resign, effective May 3, 2024.

McCargo has served in the Biden-Harris Administration since January 2021, first as Senior Advisor for Housing Finance in the Department of Housing and Urban Development (HUD) for former Secretary Marcia L. Fudge and later nominated by President Biden to lead Ginnie Mae. McCargo’s confirmation, with bipartisan support by the U.S. Senate, made history as she became the first woman and woman of color at the helm of the government corporation.

Acting Secretary Adrianne Todman shared her gratitude for McCargo’s service and leadership. “I thank President McCargo for her service to our country and at HUD. In her time at the agency, she has been a zealous advocate for housing affordability and ensuring a more equitable housing finance system. As President of Ginnie Mae, Alanna has helped expand Ginnie Mae’s reach in serving historically underserved communities and has been a champion for advancing market-driven initiatives that support mortgage programs across the government,” said HUD Acting Secretary Adrianne Todman. “It has been a joy to work with President McCargo. I am proud to say that she has left Ginnie Mae stronger than when she arrived, and her tenure sets a high standard for servant leadership.”

“The past 3.5 years in public service with the Biden-Harris Administration has been the most important and fulfilling work of my 25-year career in housing finance and I am deeply grateful for the opportunity to serve my country and advance a bold housing agenda across the globe as President of Ginnie Mae. I am incredibly proud of what we have accomplished together and grateful for the housing leadership this Administration and agency have demonstrated since our first day in office. This has been a deeply personal decision to return to private life,” Ginnie Mae President Alanna McCargo said in a statement.

“I am most proud of the team of career public servants at Ginnie Mae that I have had the privilege of working alongside since my confirmation. The talent, commitment, and dedication of the Ginnie Mae team is breathtaking, and the enormity of responsibility they carry out each day in our complex $2.5 Trillion guarantee business is remarkable. I am pleased with the progress and accomplishments Ginnie Mae has achieved during my tenure, the precision with which the team executes on our obligations and authorities, and the groundwork that we have laid for Ginnie Mae to grow and build the capacity needed to meet its crucial affordable housing and capital markets mission on behalf of the United States Government.” she said.

Principal Executive Vice President (PEVP) Sam Valverde will serve as Acting President upon President McCargo’s departure. He has served with McCargo for the past 2 years leading the agency through numerous critical initiatives and has spearheaded work in the global investment community to expand the value proposition of Ginnie Mae’s mortgage-backed securities program.

 

For full report, please click the source link above.

 

ICE First Look at Mortgage Performance: Serious Delinquencies at Lowest Since Mid-2006 as Foreclosures Drop, Prepayments Rise

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Industry Update
April 22, 2024

Source: ICE (Intercontinental Exchange, Inc.)

Intercontinental Exchange, Inc. (NYSE:ICE), a leading global provider of technology and data, reports the following “first look” at March 2024 month-end mortgage performance statistics derived from its loan-level database representing the majority of the national mortgage market.

The national delinquency rate ticked down 14 basis points (bps) to 3.20% in March, holding 27 bps higher than the record low in March 2023.

Historically, delinquencies fall an average -10.4% in March; conversely, months that end on Sundays – e.g., March 2024 – experience an average, if mostly temporary, upward pull of +6.9%.

Only the third such convergence in the last two decades, this March’s 4.2% drop in the delinquency rate is in line with the previous cases in which March ended on a Sunday.

Serious delinquencies (loans 90+ days past due but not in active foreclosure) dropped 24K (-5.2%) from February to hit their lowest level since June 2006.

March saw less inflow of past-due payments as well as fewer rolls to later stages of delinquency, with total cures up 9% as early-, mid- and late-stage delinquencies all saw improvement.

Even accounting for the 5.3% month-over-month rise in foreclosure starts, the month’s 26K starts was still below the average for the past 12 months.

The number of loans in active foreclosure fell to 205K in March – the fewest since January 2022 and still 28% below (-77K) pre-pandemic levels – with 5.8K foreclosures completed in the month.

Prepayment activity rose to its highest level in seven months driven by the lower rate environment of January and early February combined the start of the spring homebuying season.

 

For full report, please click the source link above.

 

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

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Industry Update
April 22, 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 March 31, 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 March 2024, the share of Fannie Mae and Freddie Mac loans in forbearance remained at 0.12%. Ginnie Mae loans in forbearance stayed at 0.40%, and the forbearance share for portfolio loans and private-label securities (PLS) increased 2 basis points to 0.31%.

“For the past three months, the number of loans in forbearance has held steady,” said Marina Walsh, CMB, MBA’s Vice President of Industry Analysis. “The current labor market is showing resilience, minimizing the need for mortgage forbearance. However, life events and temporary hardships still happen, regardless of employment conditions, which may explain why we have reached a floor in the forbearance rate.”

 

For full report, please click the source link above.

 

FEMA Major Disaster Declaration – New Hampshire Severe Storms and Flooding

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FEMA Alert
April 19, 2024  

FEMA has issued a Major Disaster Declaration for the state of New Hampshire to supplement state, tribal, and local recovery efforts in areas affected by severe storms and flooding from January 9-14, 2024.  The following counties have been approved for assistance:

Public Assistance:

  • Grafton
  • Rockingham

 

New Hampshire Severe Storms and Flooding (DR-4771-NH)

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

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 – Morongo Band of Mission Indians Severe Storms and Flooding

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FEMA Alert
April 19, 2024  

***Please note, only properties located within the Morongo Indian Reservation are approved for assistance.***

FEMA has issued a Major Disaster Declaration for the Morongo Band of Mission Indians to supplement tribal recovery efforts in areas affected by severe storms and flooding from January 31 – February 9, 2024.  The following counties have been approved for assistance:

Public Assistance:

  • Morongo Indian Reservation

 

California Severe Storms and Flooding (DR-4772-CA)

President Joseph R. Biden, Jr. Approves Major Disaster Declaration for the Morongo Band of Mission 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

FEMA Major Disaster Declaration – Hoopa Valley Tribe Severe Winter Storm

Posted on by Safeguard

FEMA Alert
April 19, 2024  

***Please note, only properties located within the Hoopa Valley Indian Reservation are approved for assistance.***

FEMA has issued a Major Disaster Declaration for the Hoopa Valley Tribe to supplement tribal recovery efforts in areas affected by a severe winter storm from January 30-31, 2024.  The following counties have been approved for assistance:

Public Assistance:

  • Hoopa Valley Indian Reservation

 

California Severe Winter Storm (DR-4773-CA)

President Joseph R. Biden, Jr. Approves Major Disaster Declaration for the Hoopa Valley Tribe

Map of Affected Area

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 – Vermont Severe Winter Storm

Posted on by Safeguard

FEMA Alert
April 19, 2024  

FEMA has issued a Major Disaster Declaration for the state of Vermont to supplement state, tribal and local recovery efforts in areas affected by a severe winter storm from January 9-13, 2024.  The following counties have been approved for assistance:

Public Assistance:

  • Chittenden
  • Essex
  • Franklin
  • Lamoille
  • Orleans

 

Vermont Severe Winter Storm (DR-4770-VT)

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

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

Syracuse Officials to Devote More Resources to Combat Vacant Property Problem

Posted on by Safeguard

One Community Update
April 11, 2024

Source: cnycentral.com

City officials in charge of housing policy see vacant properties as a major obstacle to achieving safer, stronger neighborhoods. Vacant buildings disproportionately account for structure fires, attract crime, and drive down the value of the properties around it.

In recent years, more resources have been thrown at the issue. This year, the goal is to accelerate those efforts as the city takes on an ambitious overhaul of its aging housing stock.

“We’re trying to take what was once an eyesore and turn it into an asset or an amenity for the neighbors,” Katelyn Wright said.

Wright is the executive director of the Greater Syracuse Land Bank, charged with restoring vacant properties. In the 10 years since the Land Bank was established, Wright said that the number of vacant properties in the city has dropped by around 800; but there are still just over 1,000 left to handle. While Wright concedes there is a lot of work to do, the Land Bank’s efforts have returned about $2 million in property taxes annually to the city.

Local direct funding is somewhat modest; the city provides about $750k, and an additional approximate $250k comes from Onondaga County. Wright said that this money is used for critical day-to-day operations to help keep them afloat, like upkeep and security at the properties they own and maintain. That kind of work helps keep Land Bank properties from causing nuisances; according to Wright, only one of their properties caught fire last year compared to dozens of other vacant properties.

For the first time, there is a budget line specifically earmarked for Land Bank seizures in the 2025 fiscal year proposal from the Mayor’s Office; this would provide the Land Bank with $300k for that purpose if approved.

Additionally, Wright commended city officials for deploying new strategies to accelerate the process of foreclosing tax-delinquent properties.

 

For full report, please click the source link above.

Macon County Board to Address Abandoned, Derelict Properties

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One Community Update
April 12, 2024

Source: hearld-review.com

The Macon County Board has approved an agreement with Central Illinois Land Bank Authority to address abandoned and derelict properties in the county.

Most of the properties will be outside the Decatur city limits.

Director Mike Davis said the land bank’s goal is to assist communities with distressed properties but not tell them what to do.

“The community decides what they want to do,” Davis said.

The aim of the land bank, according to its website, is to revitalize neighborhoods, increase property values, stabilize real estate markets and redevelop properties. The land bank already works with Vermilion and Champaign counties.

“The idea of this land bank and others is to help deal with distressed properties,” Davis said at Thursday’s county board meeting. “We turn them into productive use and get them back on the tax rolls.”

The land bank wrote a grant for $337,000, he said, and he’ll be working closely with Macon County Administrator Tammy Wilcox to create a list of properties.

“My goal is, how do I add capacity to communities and bring in more resources and clean up the community and do good work?” Davis said.

In other business, the board approved a contract between Macon and the Macon County Sheriff’s Office for police services and issued a proclamation declaring April Child Abuse Prevention Month.

 

For full report, please click the source link above.