Page 67 – Safeguard Properties

Share of Mortgage Loans in Forbearance Decreases to 0.64% in January

Posted on February 27, 2023 by Safeguard

Industry Update
February 21, 2023

The Mortgage Bankers Association’s (MBA) monthly Loan Monitoring Survey revealed that the total number of loans now in forbearance decreased by 6 basis points from 0.70% of servicers’ portfolio volume in the prior month to 0.64% as of January 31, 2023. According to MBA’s estimate, 320,000 homeowners are in forbearance plans.

The share of Fannie Mae and Freddie Mac loans in forbearance decreased 1 basis point to 0.30%. Ginnie Mae loans in forbearance decreased 8 basis points to 1.37%, and the forbearance share for portfolio loans and private-label securities (PLS) decreased 17 basis points to 0.83%.

“The forbearance rate decreased across all investor types in January, as borrowers continued to recover from pandemic-related hardships,” said Marina Walsh, CMB, MBA’s Vice President of Industry Analysis. “With the national emergency set to end on May 11 of this year, many borrowers will no longer have the option to initiate COVID-19-related forbearance. Mortgage forbearance in other forms – whether due to natural disasters or life events – will continue, albeit with different requirements and parameters.”

For full report, please click the source link above.

Fannie REO Inventory Increased in Q4; Expected to Increase Further in 2023

Posted on February 27, 2023February 27, 2023 by Safeguard

Industry Update
February 20, 2023

Source: Calculated Risk

Fannie reported results for Q4 2022. Here is some information on single-family Real Estate Owned (REOs).

One of those actions was a foreclosure moratorium that ended in mid-2021. Since then, foreclosures have increased slightly.

Fannie Mae reported the number of REOs increased to 8,779 at the end of Q4 2022, up 23% from 7,166 at the end of Q4 2021. 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.

FEMA Major Disaster Declaration – Oglala Sioux Tribe Severe Winter Storms and Snowstorm

Posted on February 22, 2023February 22, 2023 by Safeguard

FEMA Alert
February 20, 2023

***Please note, FEMA declaration DR-4688 only applies to properties within the Oglala Indian Reservation.***

FEMA has issued a Major Disaster Declaration for the Oglala Sioux Tribe to supplement tribal recovery efforts in the areas affected by severe winter storms and snowstorms from December 12-25, 2022. The following areas has been approved for assistance:

Public Assistance:

Oglala Sioux Tribe of the Pine Ridge Reservation

Oglala Sioux Tribe Severe Winter Storms and Snowstorm (DR-4688)

President Joseph R. Biden, Jr. Approves Major Disaster Declaration for Oglala Sioux Tribe

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 – Rosebud Sioux Tribe Severe Winter Storms and Snowstorm

Posted on February 22, 2023February 22, 2023 by Safeguard

FEMA Alert
February 20, 2023

***Please note, FEMA declaration DR-4687-SD only applies to properties within the Rosebud Indian Reservation.***

FEMA has issued a Major Disaster Declaration for the Rosebud Sioux Tribe to supplement tribal recovery efforts in the areas affected by severe winter storms and snowstorms from December 12-25, 2022. The following areas has been approved for assistance:

Public Assistance:

Rosebud Indian Reservation

Rosebud Sioux Tribe Severe Winter Storms and Snowstorm (DR-4687-SD)

President Joseph R. Biden, Jr. Approves Major Disaster Declaration for Rosebud Sioux Tribe

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

Baltimore City Council Considering Fees for Vacant Property Owners Who Receive 311 Requests

Posted on February 20, 2023 by Safeguard

Industry Update
February 7, 2023

Source: cbsnews.com

Baltimore City Council is considering establishing fees for vacant property owners who receive 311 requests against their properties.

The ordinance would create a fee structure with increasing fines as more and more substantiated 311 service requests stack up. Councilwoman Odette Ramos wants to create a $1,000 fine. She says this would push more vacant properties over the threshold to qualify for in rem foreclosure, a legal process where the city can foreclose faster on properties where liens exceed the assessed value.

“If it’s a vacant building and it’s got high grass or if it’s a vacant building and it’s got the roof collapse or if it’s a vacant building and there’s trash, that’s a thousand dollars,” Councilwoman Ramos said, pointing out those would be separate fines. “So, we need to get more 311s and get more citations on them to get them to that point.”

Ramos says a survey of just two neighborhoods in her district showed hundreds of additional vacant properties would qualify for in rem foreclosure just from these additional fines.

“If we all pitch in and we all do our call-out and make our 311 calls, I think it would (help). They have been sitting here (vacant) for so long, someone’s going to have to answer for it sooner or later,” Montriel Battle of Upton said Tuesday.

Baltimore has 14,341 vacant buildings citywide, according to its Open Baltimore Dashboard Tuesday.

Ninety percent of the city’s vacant buildings are privately owned. The ordinance has an exemption for 311 requests against city-owned properties.

For full report, please click the source link above.

Mason City Approves Vacant Building Registration in Effort to Combat Blight

Posted on February 20, 2023February 20, 2023 by Safeguard

Industry Update
February 14, 2023

Source: globegazette.com

The Mason City Council has approved a new ordinance requiring the registration of vacant commercial properties.

According to a memorandum from Director of Development Services Steven Van Steenhuyse, “A vacant building registration requirement keeps an owner on notice that the city expects vacant properties to be kept safe and productive, and that long-term vacancy is not in the best interest of the community.”

The ordinance applies to commercial properties. Within 120 days of vacancy, property owners must register for a vacant building permit. Proof of insurance is required. Vacant buildings will be assessed a fee of $250 in the first year, $500 in the second year and $750 per year thereafter.

There are a number of exemptions for owners of vacant real estate provided they meet certain requirements. A building that is being renovated is exempt for as long as the building permit is valid. A structure that has been damaged by fire, flood or other means is exempt as long as demolition has been scheduled within six months. In addition, exemptions apply to properties that are being actively marketed for no more than 150% of their current assessed value. According to administrators, this prevents overpricing a building to discourage its sale.

For full report, please click the source link above.

City Leaders Discuss Plans to Expand Affordable Housing

Posted on February 20, 2023 by Safeguard

Industry Update
February 15, 2023

Source: wistv.com

New affordable housing could be on its way to Columbia. City leaders are planning to build on existing resources to provide cheaper places for individuals to live.

The community development committee is looking at taking up vacant properties which were once owned by the city and turning them into spaces where affordable housing units would go.

It’ll be a good impact on the community and, plus it’ll put a lot of people in stable homes,” said Quinton Meyers.

Quinton Meyers lives in the Booker Washington Heights community. The single father of five is hoping more affordable housing comes sooner rather than later.

The plan would be a collaborative effort between the city and corporations that own vacant properties in areas like Booker Washington Heights, Belmont, and King Street communities.

“We’re working with development corporations, which are arms with the city, but they are separate from the city as well,” said Assistant City Manager Missy Gentry. “But we’re working with them to encourage new and owner-occupied units predominantly but some maybe rental to go on the vacant properties that have been owned by the city for years,” she added.

There are seven targeted areas where the community development committee is looking to have affordable housing. Gentry says this wouldn’t cost the city any money because private developers would handle all the costs of building.

For full report, please click the source link above.

Texas City Commission Approves $100K for Razing Unsafe Eyesores

Posted on February 20, 2023February 20, 2023 by Safeguard

Industry Update
February 16, 2023

Source: www.galvnews.com

City leaders approved $100,000 from the Texas City Economic Development Corp. budget for previously completed and future demolition projects aimed at “substandard, unattractive structures.”

City commissioners unanimously approved use of the money at Wednesday’s meeting to fund the demolition projects.

The decision follows previous commission approval on Jan. 4 to award contracts to the lowest bidders for the work, Island Environments and Grant Mackay, after recommendation for approval by Fire Chief David Zacherl and Community Development Director George Fuller.

“So far, we have demolished 111 substandard, unattractive structures,” Fuller said. “We work hard to ensure that nobody is displaced when we need to demolish a property.

The city’s Neighborhood Improvement Service Department has worked over the past two years to beautify the city through cleaning up abandoned residences and commercial structures. In November, the city issued a notice to bidders for Code Compliance Abatement for Residential Substandard Structure Demolitions.

“Having these types of structures in the city is not only unattractive, but they are unsafe to have around and be inside,” Fuller said.

The properties that are set to be demolished have not all been identified, Fuller said. Another budget amendment will need to be approved at a later date if more funding is needed, Fuller said.

The next scheduled meeting for the Texas City Commission is set for 5 p.m. March 1 in the Kenneth T. Nunn Council Room at City Hall, 1801 Ninth Ave. N.

For full report, please click the source link above.

Delinquency Rate for Mortgage Loans on the Rise – MBA

Posted on February 17, 2023February 17, 2023 by Safeguard

Industry Update
February 17, 2023

Source: mpamag.com

The delinquency rates for loans on residential properties increased at the end of 2022 amid economic headwinds and inflationary pressures, the Mortgage Bankers Association reported Thursday.

Mortgage delinquency rates rose to a seasonally adjusted rate of 3.96% in the fourth quarter, up 51 basis points from the third quarter but still down 69 basis points from a year ago. The share of loans on which foreclosure actions were started in Q4 dropped by one basis point to 0.14%.

“As expected, the overall national mortgage delinquency rate increased in the fourth quarter of 2022 from its previous quarterly survey low,” said Marina Walsh, vice president of industry analysis at MBA. “The weaker economy and ongoing inflationary pressures contributed to the uptick in delinquencies. The delinquency rate – while still low – increased from the previous quarter across all loan types and across all stages of delinquency.”

Walsh noted that, for the last 15 years, mortgage delinquencies have tracked very closely with employment conditions. The Bureau of Labor and Statistics’ latest report showed 517,000 jobs added in January, with the unemployment rate hovering at 3.4%.

For full report, please click the source link above.

FHFA Requests Input on Enterprise Single-Family Social Bond Program

Posted on February 17, 2023 by Safeguard

Industry Update
February 16, 2023

Source: Federal Housing Finance Agency

The Federal Housing Finance Agency (FHFA) issued a Request for Input (RFI) on Fannie Mae and Freddie Mac’s (together, the Enterprises) social bond policy. On March 28, 2023, FHFA will also host a public listening session to allow for additional input.

Currently, each Enterprise issues labeled multifamily social bonds—neither issues labeled single-family social bonds. This RFI will help FHFA understand the opportunities and potential risks associated with the Enterprises issuing single-family social bonds, under the framework of Environmental, Social, and Governance (ESG) securities. FHFA also seeks input in defining the criteria and appropriate impact measures for Enterprise-labeled single-family social bonds.

“FHFA has closely monitored the continued emergence of ESG securities and the potential for social bonds to bring more liquidity and capital to the market,” said Director Sandra L. Thompson. “As we evaluate responses from this RFI, FHFA will also look at ways that social bonds could increase liquidity and support for underserved borrowers and communities.”

For full report, please click the source link above.