Safeguard Properties

Fannie “Real Estate Owned” Inventory Decreased Q4 2023

Posted on by Safeguard

Industry Update
February 15, 2024

Source: Calculated Risk

Fannie reported results for Q4 2023. Here is some information on single-family Real Estate Owned (REOs).

Fannie Mae reported the number of REOs decreased to 8,403 at the end of Q4 2023, down 4% from 8,779 at the end of Q4 2022.

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 although REO levels might increase in 2024, there will not be a huge wave of foreclosures.

 

For full report, please click the source link above.

 

 

 

 

 

 

 

 

 

 

 

Mortgage Delinquencies Increase in the Fourth Quarter of 2023

Posted on by Safeguard

Industry Update
February 8, 2024

Source: Mortgage Bankers Association

The delinquency rate for mortgage loans on one-to-four-unit residential properties increased to a seasonally adjusted rate of 3.88 percent of all loans outstanding at the end of the fourth quarter of 2023, according to the Mortgage Bankers Association’s (MBA) National Delinquency Survey.

The delinquency rate was up 26 basis points from the third quarter of 2023 but down 8 basis points from one year ago. The historical average for the seasonally adjusted mortgage delinquency rate from 1979 through 2023 is 5.25 percent. Of particular note, FHA delinquencies were up 131 basis points.

The percentage of loans on which foreclosure actions were started in the fourth quarter remained unchanged at 0.14 percent.

“Mortgage delinquencies increased across all product types for the second consecutive quarter,” said Marina Walsh, CMB, MBA’s Vice President of Industry Analysis. “While the overall delinquency rate is still very low compared to the historical average, the pace of new loans entering delinquency picked up and some loans moved into later stages of delinquency. The resumption of student loan payments, robust personal spending, and rising balances on credit cards and other forms of consumer debt, paired with declining savings rates, are likely behind some borrowers falling behind at the end of 2023.”

Added Walsh, “The labor market is still quite resilient with the unemployment rate – strongly correlated with mortgage performance – remaining at 3.7 percent in January. Any weakening in employment conditions would likely lead to more borrowers falling behind on their payments in the coming quarters.”

 

For full report, please click the source link above.

 

 

 

 

 

 

 

 

 

 

 

U.S. Foreclosure Activity Sees Notable Increase in January 2024

Posted on by Safeguard

Industry Update
February 13, 2024

Source: ATTOM

ATTOM, a leading curator of land, property, and real estate data, today released its January 2024 U.S. Foreclosure Market Report, which shows there were a total of 33,270 U.S. properties with foreclosure filings — default notices, scheduled auctions or bank repossessions – up 5 percent from a year ago, and up 10 percent from the prior month.

“We observed a slight uptick in foreclosure filings, which may be partially attributed to the typical post-holiday progression of filings through the legal system,” said Rob Barber, CEO at ATTOM. “However, other external factors may be at play such as escalating interest rates, inflation, employment shifts and other market dynamics. We remain vigilant in monitoring these trends to understand their full impact on foreclosure activity.”

Foreclosure Completion Numbers Increase Monthly in 19 States

Lenders repossessed 3,954 U.S. properties through completed foreclosures (REOs) in January 2024, up 1 percent from a year ago and up 13 percent from last month – the first month over month increase in completed foreclosures since July 2023.

States that had at least 50 or more REOs and that saw the greatest monthly increase in January 2024 included: Michigan (up 200 percent); Minnesota (up 47 percent); California (up 43 percent); Pennsylvania (up 36 percent); and Missouri (up 34 percent).

Among the 224 metropolitan statistical areas with a population of at least 200,000, that saw the greatest number of REOs included: Detroit, MI (609 REOs); Chicago, IL (194 REOs); New York, NY (163 REOs); Philadelphia, PA (107 REOs); and San Francisco, CA (107 REOs).

 

For full report, please click the source link above.

 

 

 

 

 

 

 

 

 

 

 

FEMA Major Disaster Declaration – Michigan Severe Storms, Tornadoes, and Flooding

Posted on by Safeguard

FEMA Alert
February 8, 2024  

FEMA has issued a Major Disaster Declaration for the state of Michigan to supplement state, tribal and local recovery efforts in areas affected by severe storms, tornadoes and flooding from August 24-26, 2023.  The following counties have been approved for assistance:

Individual Assistance:

  • Eaton
  • Ingham
  • Ionia
  • Kent
  • Livingston
  • Macomb
  • Monroe
  • Oakland
  • Wayne

 

Michigan Severe Storms, Tornadoes, and Flooding (DR-4757-MI)

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

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

Fannie and Freddie: Single Family Serious Delinquency Rate Increased Slightly, Multi-family Unchanged in December

Posted on by Safeguard

Industry Update
January 30, 2024

Source: Calculated Risk

Single-family serious delinquencies increased slightly in December, and multi-family serious delinquencies were unchanged.

Freddie Mac reported that the Single-Family serious delinquency rate in December was 0.55%, up from 0.54% November. Freddie’s rate is down year-over-year from 0.66% in December 2022.  This is below the pre-pandemic lows. Freddie’s serious delinquency rate peaked in February 2010 at 4.20% following the housing bubble and peaked at 3.17% in August 2020 during the pandemic.

Fannie Mae reported that the Single-Family Serious Delinquency increased to 0.55% in December from 0.54% in November. The serious delinquency rate is down from 0.65% in December 2022.  This is below the pre-pandemic lows. The Fannie Mae serious delinquency rate peaked in February 2010 at 5.59% following the housing bubble and peaked at 3.32% in August 2020 during the pandemic.

 

For full report, please click the source link above.

 

 

 

 

 

 

 

 

 

 

 

FHFA Unveils 2024 Scorecard for Fannie Mae, Freddie Mac

Posted on by Safeguard

Industry Update
February 6, 2024

Source: Dodd Frank Update

The Federal Housing Finance Agency (FHFA) recently released its 2024 Scorecard, outlining strategic objectives for Fannie Mae, Freddie Mac and their joint venture, Common Securitization Solutions, LLC (CSS).

FHFA Director Sandra Thompson emphasized the critical role of the annual Scorecard in guiding government-sponsored enterprises (GSEs).

“The annual Scorecard requires that the Enterprises fulfill their mission in a safe and sound manner,” Thompson said in a statement. “The 2024 Scorecard focuses the Enterprises on effective risk management to ensure safety and soundness while meaningfully advancing equitable and sustainable access to homeownership and rental housing.”

Among the objectives detailed in the scorecard are those aimed at addressing multifamily rental housing needs, exploring risk mitigation strategies in the evolving single-family property insurance market and promoting efficiency in the mortgage market.

 

For full report, please click the source link above.

 

 

 

 

 

 

 

 

 

 

 

FEMA Major Disaster Declaration – New York Severe Storm and Flooding

Posted on by Safeguard

FEMA Alert
January 30, 2024  

FEMA has issued a Major Disaster Declaration for areas of the state of New York to supplement state, tribal and local recovery efforts in areas affected by a severe storm and flooding from September 28-30, 2023.  The following counties have been approved for assistance:

Public Assistance:

  • Kings
  • Nassau
  • Westchester

 

New York Severe Storm and Flooding (DR-4755-NY)

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 – West Virginia Severe Storms, Flooding, Landslides and Mudslides

Posted on by Safeguard

FEMA Alert
January 30, 2024  

***LAST UPDATED 3/13/24***

FEMA has issued a Major Disaster Declaration for areas of the state of West Virginia to supplement state, tribal and local recovery efforts in areas affected by severe storms, flooding, landslides and mudslides from August 28-30, 2023.  The following counties have been approved for assistance:

Individual Assistance:

  • Boone
  • Calhoun
  • Clay
  • Harrison
  • Kanawha

Public Assistance:

  • Harrison
  • Kanawha
  • Roane

 

West Virginia Severe Storms, Flooding, Landslides and Mudslides (DR-4756-WV)

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 – Maine Severe Storms and Flooding

Posted on by Safeguard

FEMA Alert
January 30, 2024  

***LAST UPDATED: 3/19/24***

FEMA has issued a Major Disaster Declaration for areas of the state of Maine to supplement state, tribal and local recovery efforts in areas affected by a severe storm and flooding from December 17-21, 2023.  The following counties have been approved for assistance:

Individual Assistance:

  • Androscoggin
  • Franklin
  • Kennebec
  • Oxford
  • Somerset

Public Assistance:

  • Androscoggin
  • Franklin
  • Hancock
  • Kennebec
  • Oxford
  • Penobscot
  • Piscataquis
  • Somerset
  • Waldo
  • Washington

 

Maine Severe Storms and Flooding (DR-4754-ME)

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

ICE Report: December 2023 Delinquency Rate Hits 3.57%

Posted on by Safeguard

Industry Update
January 24, 2024

Source: National Mortgage Professional

In December 2023, the national delinquency rate experienced a slight increase, reaching 3.57%, according to the Intercontinental Exchange, Inc. (ICE) mortgage performance report.

This uptick of 19 basis points (bps) from November was primarily attributed to the fact that December ended on a Sunday. This unusual calendar occurrence delayed the processing of payments made on the last day of the month, impacting the delinquency rate.

While the rise in delinquencies for December 2023 of 5.6% was larger than the average December increase of 1.4%, it was still milder compared to previous December months ending on a Sunday, which typically saw delinquencies jump by an average of 9.9%.

Delinquencies showed a moderate increase across the board, driven by higher inflows and rolls to later stages of delinquency. However, there was some positive news as cures from both early- and late-stage delinquency improved.

Despite the rise in delinquencies, serious delinquencies (those 90 days or more past due) increased to 475,000. However, this figure was still 19% lower than the number reported at the end of December 2022.

For full report, please click the source link above.