Safeguard Properties

Mortgage Delinquencies Increase in the Third Quarter of 2023

Posted on by Safeguard

Industry Update
November 9, 2023

Source: Mortgage Bankers Association

The delinquency rate for mortgage loans on one-to-four-unit residential properties increased to a seasonally adjusted rate of 3.62 percent of all loans outstanding at the end of the third quarter of 2023, according to the Mortgage Bankers Association’s (MBA) National Delinquency Survey.

The delinquency rate was up 25 basis points from the second quarter of 2023 and up 17 basis points from one year ago. The percentage of loans on which foreclosure actions were started in the third quarter rose by 1 basis point to 0.14 percent.

“The national mortgage delinquency rate increased in the third quarter from the record survey low reached in the second quarter of this year, with an uptick in delinquencies across all loan types – conventional, FHA, and VA,” said Marina Walsh, CMB, MBA’s Vice President of Industry Analysis. “The increase was driven entirely by a rise in earliest-stage delinquencies – those 30-days and 60-days past due. Later-stage delinquencies – those 90 days or more past due – declined to the lowest level since the first quarter of 2020.”

Added Walsh, “The decline in later-stage delinquencies, along with a foreclosure starts rate of 0.14 percent – which is well below the historical quarterly average of 0.40 percent – suggest that distressed homeowners may be utilizing available loss mitigation options that prevent a foreclosure start. Additionally, accumulated home equity may also be enabling some homeowners to sell their homes well before foreclosure becomes a possibility.”

 

For full report, please click the source link above.

 

 

 

 

 

 

 

 

 

 

 

U.S. Foreclosure Activity Remains Steady in October 2023

Posted on by Safeguard

Industry Update
November 14, 2023

Source: ATTOM

ATTOM, a leading curator of land, property, and real estate data, released its October 2023 U.S. Foreclosure Market Report, which shows there were a total of 34,472 U.S. properties with foreclosure filings — default notices, scheduled auctions or bank repossessions — down 6 percent from a month ago but up 6 percent from a year ago.

“Foreclosure filings continue to paint a concerning picture,” said Rob Barber, CEO at ATTOM. “With foreclosure filings ranging from 31,557 in January 2023 to 34,472 in October 2023, it’s evident that challenges in the housing market persist. While we anticipate a likely decline in the coming months due to the holiday season and other seasonal patterns, we do foresee a continued uptick in 2024 as foreclosure filings make their way through the pipeline.”

Delaware, Ohio and New Jersey post highest foreclosure rates

Nationwide one in every 4,051 housing units had a foreclosure filing in October 2023. States with the highest foreclosure rates were Delaware (one in every 2,432 housing units with a foreclosure filing); Ohio (one in every 2,492 housing units); New Jersey (one in every 2,550 housing units); Maryland (one in every 2,565 housing units); and South Carolina (one in every 2,569 housing units).

Among the 223 metropolitan statistical areas with a population of at least 200,000, those with the highest foreclosure rates in October 2023 were Cleveland, OH (one in every 1,403 housing units with a foreclosure filing); Atlantic City, NJ (one in every 1,547 housing units); Spartanburg, SC (one in every 1,708 housing units); Bakersfield, CA (one in every 1,785 housing units); and Jacksonville, NC (one in every 1,848 housing units).

Those metropolitan areas with a population greater than 1 million with the worst foreclosure rates in October 2023, including Cleveland, OH, were: Miami-Fort Lauderdale, FL (one in every 2,180 housing units); Riverside, CA (one in every 2,254 housing units); Houston, TX (one in every 2,269 housing units); and Philadelphia, PA (one in every 2,323 housing units).

 

For full report, please click the source link above.

 

 

 

 

 

 

 

 

 

 

 

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

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FEMA Alert
November 14, 2023 

FEMA has issued a Major Disaster Declaration for areas of the state of Arkansas to supplement state, tribal and local recovery efforts in the areas affected by severe storms, straight-line winds, and tornadoes from June 25-26, 2023.  The following counties have been approved for assistance:

Public Assistance:

  • Arkansas
  • Faulkner
  • Lonoke
  • Poinsett

 

Arkansas Severe Storms, Straight-line Winds, and Tornadoes (DR-4748-AR)

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

HUD: Update to Property Inspection Fees

Posted on by Safeguard

Industry Update
November 14, 2023

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

This Mortgagee Letter (ML) updates inspection fees for Property Preservation and Protection.

Initial Occupancy Inspection: $30/$20 per each additional unit

Occupancy Follow-up Inspections: $30/$20 per each additional unit

Vacant Inspections (Ongoing)

First Time Vacant Property Inspection (One time): $45/$30 per each additional unit

Follow-up Vacant Property Inspections: $45/$30 per each additional unit

 

For full report, please click the source link above.

 

 

 

 

 

 

 

 

 

 

 

Pre-filed Bill Would Extend Abilities of Alabama Land Banks

Posted on by Safeguard

Industry Update
November 2, 2023

Source: News From The States

A bill filed for the Alabama Legislature’s 2024 session would give land banks more flexibility in acquiring properties and allow cities and counties to create joint land bank authorities for economic development.

SB 3, sponsored by Sen. Linda Coleman-Madison, D-Birmingham, said in an interview Wednesday that the bill would allow land bank authorities to acquire tax-delinquent properties, “which they have not had the opportunity to do.”

“We have a lot of properties, in Birmingham in particular because it is a more urbanized area, that are vacant and abandoned,” she said. “These properties are deteriorating and bringing the property values of communities down.”

Land banks are essentially an economic development tool that allow governments to acquire vacant or abandoned properties and turn them over to other entities with a goal of improving the land.

“You think about any community, you are riding down the street in an area of a neighborhood, you have got overgrown grass, you have got busted out windows, you have got any of the signs of decay,” said Brian Larkin, director of the National Land Bank Network with the Center for Community Progress, an organization that advises governments on this issue.

Larkin said that many times, governments are not interested in assuming control of these properties and managing them, preferring instead to turn them over to other groups who can use them for some purpose. A land bank is a tool to do so.

 

For full report, please click the source link above.

 

 

 

 

 

 

 

 

 

 

 

Butler County gets Another $2.5M to Eliminate Eyesores, Remediate Brownfields

Posted on by Safeguard

Industry Update
November 2, 2023

Source: Yahoo! News

Butler County is receiving another $2.5 million cash infusion from the state to clear the way for redevelopment, similar to the windfall received to down the old Forest Fair Mall, which is a work in progress.

Gov. Mike DeWine announced this week applications are open for a new round of the Ohio Building Demolition and Site Revitalization Program, which provides $150 million in grants to raze dilapidated commercial and residential buildings.

Each of the 88 counties are guaranteed $500,000 and the rest of the money will be doled out on a first-come-first-served basis. The applications are due April 1 and the money must be spent by June 30, 2025.

“Blighted buildings have no place in our vision for Ohio’s future,” DeWine said. “These dilapidated eyesores continue to stand in the way of progress, and by helping local communities take them down, we can open these areas up for new economic development.”

Seth Geisler, executive director of the Butler County Land Bank, has been culling applications since the money was approved in the state budget in June, to ensure the county won’t leave any money of the table and can get in line for the remaining $106 million.

So far he has 23 applications for demolitions in Hamilton and Middletown that total around $300,000 but he is still collecting applications. The average price per take-down is $16,000.

“I do expect we’ll use the entire set aside,” Geisler said. “And I do hope to be awarded some above and beyond that. It depends on when I get the applications in from the cities and hopefully by the time we get it in all the funds aren’t used up.”

 

For full report, please click the source link above.

 

 

 

 

 

 

 

 

 

 

 

YNDC’s City Survey Shows Progress with Vacant Houses

Posted on by Safeguard

Industry Update
November 2, 2023

Source: wytv.com

Efforts to clean up and demolish blighted properties in Youngstown appear to be paying off, according to the results of the Youngstown Neighborhood Development Corporation’s latest citywide survey.

The survey is completed biannually to keep track of the conditions of the city’s residential and commercial properties. The results of the survey are given to the Mahoning County Land Bank and city officials and are used to determine properties that may need to be demolished or repaired.

“I would say the primary takeaway this year is that vacant and abandoned properties continued to go down, so this year, we counted about 740 that we would characterize in that general range of vacant and abandoned that may merit demolition. Last time, we were at about 895 or so,” said Ian Beniston, executive director of YNDC.

Beniston’s team went out over the summer, taking photos of properties and looking for occupancy or exterior deficiencies. This is the first year that commercial properties were included in the survey.

Beniston said the decrease is significant, especially when compared to his first survey.

 

For full report, please click the source link above.

 

 

 

 

 

 

 

 

 

 

 

Fetterman Announces $1 Million in Funding for Blighted Properties in Reading

Posted on by Safeguard

Industry Update
November 2, 2023

Source: wfmz.com

U.S. Senator John Fetterman (D – Pa.) announced $1 million in funding for blighted property acquisition in Reading after the U.S. Senate passed its first bipartisan FY24 appropriations bill Wednesday afternoon.

The legislative package includes millions in funding for projects in Pennsylvania ranging from agriculture research to homelessness assistance to veterans’ health care.

“I am proud to have secured these critical funds for the people I was elected to represent during my first annual appropriations process. These projects will benefit our rural communities and farmers, our servicemembers and veterans, our unhoused population, and so many other Pennsylvanians,” said Senator Fetterman.

“Investing in these communities is critical. I ran for this Senate seat to fight for the people and places that are typically left behind by Washington. This funding is a good start to get this community what it needs and deserves, but it can’t be the end of our work here. I will never stop fighting for federal investment in Berks County, and communities all across the commonwealth.”

Fetterman said this project would help transform blighted properties in the City of Reading by allowing the city to either stabilize or demolish these buildings so they can be utilized for productive uses that serve city residen

There are currently hundreds of blighted and vacant properties throughout the city, an issue that local officials have been grappling with for some time.

 

For full report, please click the source link above.

 

 

 

 

 

 

 

 

 

 

 

FHA Extends Current Foreclosure Protections for Borrowers in Maui County, HI

Posted on by Safeguard

Industry Update
November 2, 2023

Source: Federal Housing Administration

The Federal Housing Administration (FHA) today announced it is extending its existing disaster-related foreclosure moratorium in Maui County, HI, through May 6, 2024, for borrowers with FHA-insured single-family mortgages, including seniors with Home Equity Conversion Mortgages. This extension provides additional time for borrowers in the process of recovering from the unprecedented challenges of the catastrophic Maui wildfires to consult with mortgage servicers and housing counselors and to access federal, state, and local housing resources without also having to contend with the burden of an impending foreclosure action.

“When I visited Maui in September, I saw firsthand the damage inflicted by the devastating wildfires. The people of Maui are resilient, but they will need support for years to come to rebuild and recover,” said HUD Deputy Secretary Adrianne Todman. “With today’s announcement, we are assuring homeowners in Maui that HUD is here to support them as they navigate next steps with their family.”

FHA implemented an automatic 90-day foreclosure moratorium that required mortgage servicers to halt the initiation or completion of all foreclosure actions in Maui County on August 10, 2023, when the disaster occurred. The moratorium was originally set to expire on November 8, 2023. In addition to extending the foreclosure moratorium through May 6, 2024, FHA is also extending the deadline dates for servicers to perform certain legal actions related to foreclosure for an additional 180 days following the end of the foreclosure moratorium.

For full report, please click the source link above.

 

 

 

 

 

 

 

 

 

 

 

Zombie Foreclosures Rise in 4th Quarter Across U.S. as Lenders Pursue More Delinquent Mortgages

Posted on by Safeguard

Industry Update
October 31, 2023

Source: www.prnewswire.com

ATTOM, a leading curator of land, property, and real estate data, today released its fourth-quarter 2023 Vacant Property and Zombie Foreclosure Report showing that 1.3 million (1,294,505) residential properties in the United States are vacant. That figure represents 1.27 percent, or one in 78 homes, across the nation – virtually the same as in the third quarter of this year.

The report analyzes publicly recorded real estate data collected by ATTOM — including foreclosure status, equity and owner-occupancy status — matched against monthly updated vacancy data. (See full methodology below).

The report also reveals that 320,765 residential properties in the U.S. are in the process of foreclosure in the fourth quarter of this year, up 1.7 percent from the third quarter of 2023 and up 12.8 percent from the fourth quarter of 2022. A growing number of homeowners have faced possible foreclosure following the nationwide moratorium on lenders pursuing delinquent homeowners was imposed after the Coronavirus pandemic hit in early 2020 and was lifted in the middle of 2021.

Among those pre-foreclosure properties, about 8,900 sit vacant as zombie foreclosures (pre-foreclosure properties abandoned by owners) in the fourth quarter of 2023. That figure also is up slightly from the prior quarter, by 1.4 percent, and up 15.3 percent from a year ago. The latest increase marks the seventh straight quarterly rise.

However, the fourth-quarter count of zombie properties represents only a tiny portion of the nation’s total housing stock – just one of every 11,412 homes around the U.S.

For full report, please click the source link above.