Safeguard Properties

Share of Mortgage Loans in Forbearance Decreases to .26% in November

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Industry Update
December 18, 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 3 basis points from 0.29% of servicers’ portfolio volume in the prior month to 0.26% as of November 30, 2023. According to MBA’s estimate, 130,000 homeowners are in forbearance plans. Mortgage servicers have provided forbearance to approximately 8.1 million borrowers since March 2020.

In November 2023, the share of Fannie Mae and Freddie Mac loans in forbearance declined 2 basis points to 0.16%. Ginnie Mae loans in forbearance decreased 5 basis points to 0.47%, and the forbearance share for portfolio loans and private-label securities (PLS) decreased 2 basis points to 0.30%.

“Nearly 96 percent of all home mortgages are performing, which underscores how strong servicing portfolio performance is right now with the same resilience seen in the U.S. labor market,” said Marina Walsh, CMB, MBA’s Vice President of Industry Analysis. “Meanwhile, the performance of loan workouts is solid, but declined last month. Roughly 70 percent of loan workouts initiated since 2020 are current.”

Added Walsh, “MBA forecasts an economic downturn in 2024, and there are signs of early distress in other credit types such as car loans and credit cards. Those borrowers who struggled in making their mortgage payments in the past may find themselves in similar situations in a softening economy and rising unemployment.”

 

For full report, please click the source link above.

 

 

 

 

 

 

 

 

 

 

 

The City of Casey Addresses Blighted Properties

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Industry Update
December 4, 2023

Source: wthitv.com

The city of Casey, Illinois, is trying to clean up some blighted properties. It’s something many residents are eager to see.

News 10 spoke with several residents and visitors from out of town about these blighted properties. Most say these eyesores in the community don’t go unnoticed.

“Basically all throughout the United States, there’s just abandoned houses are in a little bit of rougher shape,” said Logan Elbers, one local visitor.

Mayor Mike Nichols has made it a priority to enhance neighborhoods by tearing down abandoned and neglected buildings. Nichols says some of these properties are unsafe. Whether they’re occupied or not, he says all of them are in desperate need of change.

“Porches that are partially collapsed, you’ve got yards that look more like a forest that are harboring animals that can create health problems also,” said Nichols.

The city is currently looking at 17 properties that need to be revamped. Nichols says he’s turned to the city attorney and local law enforcement for assistance. Depending on the size and material of the house, it can cost between $10,000 to $15,000 to tear one structure down.

Nichols says the city has already notified several property owners about this problem. The city will either purchase the property itself, or the owners will have to correct the situation.

“I don’t want to come off as heavy-handed to the folks on the property, but I want to come off as caring and trying to make things better for the people living in those homes, or people living around those homes, or the citizens in Casey,” said Nichols.

For full report, please click the source link above.

 

 

 

 

 

 

 

 

 

 

 

Council Hears Presentation on Abandoned Properties

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Industry Update
December 5, 2023

Source: hannibal.net

The Hannibal City Council heard an impassioned pitch Tuesday from two local property owners on the need to take action regarding abandoned and derelict properties across the city, but especially in the downtown and central neighborhood areas.

Bob Yapp and Andrew Wikstrom stated up front the issues they were concerned with are not with occupied homes that are not in great shape, a separate issue to the pair, but rather the homes and commercial buildings that are empty and unsecured from trespass or nature.

Wikstrom said he sees Hannibal “rising like a phoenix” with development that’s happened in the last 10 to 20 years, but that “we’re hitting a stopping point” because of absentee property owners.

Yapp said he understands the idea of buying properties in growing areas, taking advantage of lower values that are expected to go higher in coming years. But he said some of the property speculators out there are taking advantage of others who are actually putting in the work to improve surrounding properties.

Hannibal Mayor Barry Louderman agreed with the concerns and said he would task Wikstrom and Yapp with forming a citizen-based committee to make recommendations on actions to be taken on properties that might be saved as well as those that are beyond repair.

 

 

For full report, please click the source link above.

 

 

 

 

 

 

 

 

 

 

 

Dougherty Co. Leaders Want to Toughen Code Enforcement to Fight Blighted Buildings

Posted on by Safeguard

Industry Update
December 11, 2023

Source: walb.com

On Monday, the Dougherty County Commission held a government affairs meeting to consider asking a Georgia law firm to help them update their code of ordinances.

Since the last meeting in October, they have compiled a list of ordinances that are top of mind for revision. Here’s why commissioners feel these updates are needed.

The county ordinances haven’t been updated since 1986. That is why Commissioner Chair for District 5 Gloria Gaines called this meeting.

According to Advancing Georgia’s Counties, best practices include updating the ordinances once every five to 10 years and keeping codes current with the times. The first two areas that Commissioner Gaines wants to tackle are zoning and vegetation control.

Several items on the agenda under the code of ordinances also include addressing blighted properties and animal control.

“How do we use our ordinances to create a better living environment for our citizens? And that call went out and we have a list that we will pass on to our legal consultants and they will have a look at it and try to help us try to codify some of the updates,” Gaines said.

County Attorney Alex Shalishali has been in contact with a few Georgia law firms that oversee local government, who could advise the county on how to best do this.

“For example, you have heard about code enforcement because blight is an issue that they want to address. And so we have gathered information from board staff and we are going to continue gathering information from other stakeholders. And we will likely engage a consultant,” Shalishali said.

City and county leaders have been frustrated with the slow process of cleaning up blighting properties. County leaders are trying to use ordinance changes to make the process faster.

Here’s how county leaders hope to address it:

  1. To expedite the lien process for unpaid fines when property owners are not compliant.
  2. To set new standards that require owners to maintain vacant properties.

“We have a lot of problems with maintaining properties around here, vacant properties around here, maintaining yards with animals that are out of control. With junk cards and that kind of stuff,” Gaines said.

The commission is also considering tougher fines for owners that allow weeds to grow out of control on their properties. And regulation on junk vehicles that are stored on front lawns.

For now, these are all just ideas and no timeline was given on when action might be taken.

 

For full report, please click the source link above.

 

 

 

 

 

 

 

 

 

 

 

A Plan to Take on Baltimore’s Vacant Properties, ‘Once and For All’

Posted on by Safeguard

Industry Update
December 11, 2023

Source: wmar2news.com

We’ve all seen them: the thousands of decaying, dilapidated properties in Baltimore City.

On Monday, announced to a cheering crowd at the Greater Harvest Baptist Church in West Baltimore, itself next to vacant homes: a new plan to fix them over 15 years.

“Let’s picture not one single vacant or abandoned home in sight!” Rev. Cristina Paglinauan, a member of the BUILD Executive Team, said to applause Monday.

Mayor Brandon Scott, the Greater Baltimore Committee and the multi-faith community organization BUILD announced the agreement, which would combine public and private dollars to redevelop at least 37,000 – which could get to as many as 45,000 – properties in Baltimore City.

The plan commits $300 million from Baltimore City across 15 years, aiming to generate billions in return in the future.

“We can’t gloss over how big this is,” Scott said Monday, “with our plan, Baltimore will be on the cutting edge of housing policy for the entire country, and we’re going to be putting it to use in the neighborhoods that need it the most.”

 

For full report, please click the source link above.

 

 

 

 

 

 

 

 

 

 

 

FEMA Major Disaster Declaration – Tennessee Severe Storms and Tornadoes

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FEMA Alert
December 13, 2023 

***LAST UPDATED 2/5/2024***

FEMA has issued a Major Disaster Declaration for areas of the state of Tennessee to supplement state, tribal and local recovery efforts in the areas affected by severe storms and tornadoes on December 9, 2023.  The following counties have been approved for assistance:

Individual Assistance:

  • Cheatham
  • Davidson
  • Dickson
  • Gibson
  • Montgomery
  • Stewart
  • Sumner

Public Assistance:

  • Cheatham
  • Davidson
  • Dickson
  • Gibson
  • Montgomery
  • Robertson
  • Stewart
  • Sumner
  • Weakley

 

Tennessee Severe Storms and Tornadoes (DR-4751-TN)

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

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

OCC Reports Mortgage Performance for Third Quarter of 2023

Posted on by Safeguard

Industry Update
December 12, 2023

Source: Office of the Comptroller of the Currency

The Office of the Comptroller of the Currency (OCC) reported on the performance of first-lien mortgages in the federal banking system during the third quarter of 2023.

The OCC Mortgage Metrics Report, Third Quarter 2023 showed that 97.3 percent of mortgages included in the report were current and performing at the end of the quarter, the same as the previous quarter. Performance improved compared to third quarter 2022 when 97.2 percent of mortgages were current and performing.

The percentage of seriously delinquent mortgages—mortgages that are 60 or more days past due and all mortgages held by bankrupt borrowers whose payments are 30 or more days past due—was 1.1 percent in the third quarter of 2023, the same as the previous quarter, and a decrease from 1.3 percent a year ago. The percent of seriously delinquent loans has trended down since the third quarter of 2021.

Servicers initiated 8,965 new foreclosures in the third quarter of 2023, an increase from the prior quarter but a decrease from a year earlier. The new foreclosure volume in the third quarter of 2023 is lower than pre-COVID-19 pandemic foreclosure volumes.

Servicers completed 7,436 modifications during the third quarter of 2023, a 13.8 percent decrease from the previous quarter’s 8,623 modifications. Of these 7,436 modifications, 6,367 or 85.6 percent, were “combination modifications”—modifications that included multiple actions affecting the affordability and sustainability of the loan, such as an interest rate reduction and a term extension.

The first-lien mortgages included in the OCC’s quarterly report comprise 22 percent of all residential mortgage debt outstanding in the United States or approximately 11.8 million loans totaling $2.7 trillion in principal balances.

 

For full report, please click the source link above.

 

 

 

 

 

 

 

 

 

 

 

Seasonal Influence Eases U.S. Foreclosure Activity, Marking Slight Decline

Posted on by Safeguard

Industry Update
December 11, 2023

Source: ATTOM

ATTOM, a leading curator of land, property, and real estate data, today released its November 2023 U.S. Foreclosure Market Report, which shows there were a total of 32,120 U.S. properties with foreclosure filings — default notices, scheduled auctions or bank repossessions – up 5 percent from a year ago, but down 7 percent from the prior month.

“While we’ve observed a modest decrease in U.S. foreclosure activity most likely due to seasonal factors, it’s essential to note that these fluctuations are a part of the cyclical nature of the market,” said Rob Barber, CEO at ATTOM. “As we look ahead to 2024, we anticipate a potential uptick in foreclosure activity as various economic factors evolve and market dynamics shift.

Highest foreclosure rates in Delaware, Maryland, and Ohio

Nationwide one in every 4,347 housing units had a foreclosure filing in November 2023. States with the highest foreclosure rates were in: Delaware (one in every 2,393 housing units with a foreclosure filing); Maryland (one in every 2,537 housing units); Ohio (one in every 2,656 housing units); South Carolina (one in every 2,771 housing units); and New Jersey (one in every 2,834 housing units).

Among the 223 metropolitan statistical areas with a population of at least 200,000, those with the highest foreclosure rates in November 2023 were Bakersfield, CA (one in every 1,595 housing units with a foreclosure filing); Cleveland, OH (one in every 1,818 housing units); Canton, OH (one in every 1,820 housing units); Columbia, SC (one in every 1,922 housing units); and Stockton, CA (one in every 1,961 housing units).

Those metropolitan areas with a population greater than 1 million, with the worst foreclosure rates in November 2023, including Cleveland, OH were: Philadelphia, PA (one in every 2,114 housing units); Baltimore, MD (one in every 2,206 housing units); Riverside, CA (one in every 2,327 housing units); and Las Vegas, NV (one in every 2,372 housing units).

 

For full report, please click the source link above.

 

 

 

 

 

 

 

 

 

 

 

Baltimore County Creates Portal to Identify Vacant Properties

Posted on by Safeguard

Industry Update
November 22, 2023

Source: baltimorefishbowl.com

Baltimore County has just made it easier to identify vacant properties with the release of a new data portal.

“Providing the public with the tools they need to identify—and now view—vacant properties is another step in our ongoing work to find and transform today’s blighted and abandoned properties into tomorrow’s housing opportunities,” said Baltimore County Executive Johnny Olszewski in a statement. “This portal continues our work to provide a more accessible and open government for everyone, including our first responders who will now have critical safety information about properties before arriving on the scene of a potential emergency.”

After Baltimore County passed the Vacant Structures law earlier this year, the county created its first-ever process to designate properties as “vacant.” The new law gives the Department of Permits, Approvals and Inspections the ability to identify vacant structures and maintain a running inventory of these vacant buildings. The law also authorizes the department to verify that the building complies with all applicable laws, and is not detrimental to the public health, safety, or a hazard to police officers or firefighters who might enter the structure in an emergency.

Since April, more than 160 properties have been identified and verified as vacant, and 10 have been resolved or remediated by either becoming occupied or being demolished.

“Having the ability to identify, inspect and monitor vacant structures in Baltimore County is a game changer for us in Code Enforcement, and this new portal is a great way to share important data with residents and first responders,” said Adam Whitlock, the county’s code enforcement chief, in a statement. “This process is yet another way we are able to coordinate efforts with County agencies to address issues and keep the public informed.”

 

For full report, please click the source link above.

 

 

 

 

 

 

 

 

 

 

 

Syracuse City Officials to Seek Bold New Powers to Promote More and Better Housing

Posted on by Safeguard

Industry Update
November 28, 2023

Source: syracuse.com

Syracuse Mayor Ben Walsh wants to create a new arm of government that would allow the city to own and manage apartment buildings and help private homeowners fix up their homes.

Walsh has asked the city council to create a housing trust — a separate public authority with its own board and mission, and the power to issue bonds, make loans and award grants.

The goal is to boost quality, affordable housing in a city in crisis.

It would give the city game-changing powers to take on long-neglected housing problems that don’t fit the molds of other government programs. It comes at a time when quality housing is scarce and an increase in demand is imminent.

A study released in March exposed two related problems in Syracuse: Most residents can’t afford market-rate housing. And the cost to rehabilitate existing homes often exceeds their worth.

A survey of the more than 35,000 residential properties in Syracuse found that one-third showed signs of “chronic disinvestment,” syracuse.com | The Post-Standard reported in March.

Many of the existing nonprofit housing agencies and streams of funding are too specific to fix the problem — focusing, for example, on homelessness or lead paint remediation in homes with children, said Michelle Sczpanski, the city’s deputy commissioner of neighborhood development.

A housing trust could be flexible enough to build new housing and to encourage private landlords and homeowners to make improvements, city officials say.

The first step is to create the trust and accept a $5 million grant already awarded in last year’s state budget.

The next steps, defining the mission and identifying specific projects, are still in development.

 

For full report, please click the source link above.