Page 79 – Safeguard Properties

Melbourne Tech Company Crumbles: ProChamps Files for Liquidation

Posted on June 30, 2023 by Safeguard

Industry Update
June 29, 2023

In a troubling development, Melbourne-based company Property Registration Champions (ProChamps), once a front-runner in the field of technology-driven property registration and compliance, has announced that it is filing as an assignee for the benefit of creditors, also known as an ABC. This drastic measure underscores the company’s financial woes, despite the assurances given by its leadership in the past.

An assignee for the benefit of creditors (ABC) is a method of liquidation that companies resort to when they can no longer meet their financial obligations. In essence, it involves the debtor company relinquishing its assets to a third-party assignee, who will then proceed to liquidate them for the purpose of paying off the company’s creditors. The petition was filed in Orange County under case number 2023-CA-013217-O and states that ProChamps currently owes $7,276,114.49 to its secured creditor, Bank United, $46,524.42 in unpaid paid time off (PTO) to employees, $1,023,563.46 to almost 300 municipalities, and $1,062,637.29 in accounts payable to law firms, Post Capital Management, LLC, and other vendors.

Post Capital Partners, the primary investor in ProChamps, has directed the company to file for the ABC. The firm, led by Managing Partner Michael Pfeffer, has historically invested in and nurtured mid-sized businesses. Despite their involvement, ProChamps finds itself unable to take any further measures to stay afloat, raising questions about the investment firm’s oversight. This unfortunate circumstance at ProChamps paints a picture of a company in crisis, even with the backing of an experienced investor.

A municipal official from Pennsylvania who asked that his name not be included in this article had this to say: “We worked with ProChamps for years without interruption. This was sudden. We think we’re out about $7,000 – so far. I’ve talked to others that are in the same boat. We’re relatively small. I’m sure the larger communities are going to take a hit over this. It’s a shame.”

For full report, please click the source link above.

FEMA Fire Management Assistance Declaration – Arizona Diamond Fire

Posted on June 29, 2023 by Safeguard

FEMA Alert
June 28, 2023

FEMA has issued a Fire Management Assistance Declaration for the state of Arizona to supplement state, tribal and local response efforts in areas affected by the Diamond Fire beginning June 27, 2023 and continuing. The following areas have been approved for assistance:

Public Assistance:

Maricopa

Arizona Diamond Fire (FM-5466-AZ)

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

FHFA Releases 1st Quarter 2023 Foreclosure Prevention and Refinance Report

Posted on June 27, 2023June 27, 2023 by Safeguard

Industry Update
June 23, 2023

Source: Federal Housing Finance Agency

The Federal Housing Finance Agency (FHFA) released its first quarter 2023 Foreclosure Prevention and Refinance Report. The report shows that Fannie Mae and Freddie Mac (the Enterprises) completed 58,268 foreclosure prevention actions during the quarter, raising the total number of homeowners who have been helped to 6,771,101 since the start of conservatorships in September 2008.

The report also shows that 35 percent of loan modifications completed in the first quarter reduced borrowers’ monthly payments by more than 20 percent. The number of refinances decreased amid rising mortgage rates from 111,251 in the fourth quarter of 2022 to 78,445 in the first quarter of 2023.

The Enterprises’ serious delinquency rate declined slightly from 0.65 percent to 0.60 percent at the end of the first quarter. This compares with 4.01 percent for Federal Housing Administration (FHA) loans, 2.26 percent for Veterans Affairs (VA) loans, and 1.73 percent for all loans (industry average).

For full report, please click the source link above.

HUD Introduces Office of Manufactured Housing Programs as New, Independent Office within Housing

Posted on June 27, 2023June 27, 2023 by Safeguard

Industry Update
June 22, 2023

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

The U.S. Department of Housing and Urban Development’s (HUD) Office of Housing is announcing that it has created a new Office of Manufactured Housing Programs as an independent office reporting directly to Assistant Secretary for Housing and Federal Housing Commissioner Julia Gordon. The Office was previously organized under the Office of Housing’s Office of Risk Management and Regulatory Affairs. This action acknowledges the important role of manufactured housing in meeting the nation’s affordable housing needs. Manufactured housing has figured prominently in the Biden-Harris Administration’s efforts to increase the supply of affordable housing and can be a helpful avenue for those of more modest means to achieve the wealth-building potential of homeownership.

“This organizational change represents a recognition of the critically important role that manufactured housing plays in our country’s housing market,” said Assistant Secretary for Housing and Federal Housing Commissioner Julia Gordon. “Thanks to the work executed by our Office of Manufactured Housing Programs over the last two years, we have made significant progress to support the availability of modern and affordable manufactured homes.”

For full report, please click the source link above.

Black Knight: “Past-Due Mortgages Approach Recent Record Lows” in May

Posted on June 27, 2023 by Safeguard

Industry Update
June 23, 2023

Source: Calculated Risk Finance & Economics

According to Black Knight’s First Look report, the percent of loans delinquent decreased 6% in May compared to April and decreased 3% year-over-year.

Black Knight reported the U.S. mortgage delinquency rate (loans 30 or more days past due, but not in foreclosure) was 3.10% in May, down from 3.31% the previous month.

The percent of loans in the foreclosure process decreased in May to 0.43%, from 0.44% the previous month.

The number of delinquent properties, but not in foreclosure, is down 20,000 properties year-over-year, and the number of properties in the foreclosure process is up 8,000 properties year-over-year.

For full report, please click the source link above.

Milwaukee Public-Philanthropic Housing Partnership Recognized Nationally

Posted on June 23, 2023 by Safeguard

Industry Update
June 16, 2023

Source: Milwaukee Courier

As the innovative work of community partners to provide a quality, affordable home for every Milwaukeean gains momentum in the city, it is also gaining attention nationally for its early results, cross-sector collaboration and strategic focus on racial equity.

For more than a decade, an affiliation of organizations known as the Community Development Alliance has jointly supported neighborhood-based housing solutions and, since 2020, has led Milwaukee’s first collective affordable housing plan. Adopted in partnership with the City of Milwaukee, Milwaukee County and a host of funders, practitioners and advocates, the plan advances racial equity through systems change, including creating opportunities for 32,000 more Black and Latino residents to become homeowners.

This month, the U.S. Department of Housing and Urban Development and the Council on Foundations awarded the Greater Milwaukee Foundation – a founding partner and a principal funder of the CDA – the2023 HUD Secretary’s Award for Public-Philanthropic Partnerships. In its role, the Foundation helps develop strategy and align resources with partners in government and the nonprofit sector to advance shared goals, together with the other members of the CDA Funders Council – Bader Philanthropies, the Department of City Development, Northwestern Mutual Foundation and Zilber Family Foundation.

“The collective affordable housing plan for Milwaukee’s aim is to advance racial equity by providing a quality, affordable home for every Milwaukeean, prioritizing Black and Latino homeownership.” said Janel Hines, vice president of community impact for the Greater Milwaukee Foundation. “Affordable housing is one of the Foundation’s priorities in our efforts to create a Milwaukee for all. Housing is typically the largest expenditure for any family, specifically for working families. Access to safe, affordable, dignified housing contributes to the health and well-being of families and communities.”

In a few short years, the collective affordable housing plan already is generating strong support and demonstrating progress in priority areas. To date, CDA partners have leveraged over $24 million to advance three key goals: investing in the construction of 150 new homes, acquiring 100 homes per year for homeownership and supporting hundreds of families with down payment assistance.

For full report, please click the source link above.

FHA Proposes Innovative Approach to Keep Struggling Homeowners in their Homes

Posted on June 23, 2023 by Safeguard

Industry Update
May 31, 2023

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

The Federal Housing Administration (FHA) posted for feedback a proposal for a new home retention option to help struggling homeowners meet their mortgage obligations. The new option, called the Payment Supplement Partial Claim, would allow mortgage servicers to use the FHA Partial Claim both to bring a borrower’s mortgage current and to provide temporary reductions to their monthly mortgage payments for up to five years.

The rapid and steep interest rate increases of the past year have limited the effectiveness of some of FHA’s existing loss mitigation options in assisting borrowers. FHA’s widely used loan modification option, which has historically reduced borrowers’ monthly payments to levels they can afford, is no longer as effective as it once was because borrowers are forced to modify at market rates that may be higher than their current rates.

The Payment Supplement Partial Claim allows homeowners experiencing a hardship who are unable to obtain a significant payment reduction with other loss mitigation options to keep their existing interest rate and reduce their monthly payment temporarily using funds from the FHA Partial Claim, which is a subordinate zero interest lien. The homeowners then pay FHA back when they sell their home or refinance.

“Many homeowners continue to experience hardships due to health or financial difficulties that occurred during the pandemic, and these challenges have been exacerbated for these and other borrowers by current economic uncertainties,” said Assistant Secretary for Housing and Federal Housing Commissioner Julia Gordon. “When we saw that our existing loan modifications were no longer providing adequate payment relief, our team painstakingly explored every possible alternative to provide relief in the current rate environment, resulting in this innovative proposal.”

FHA is seeking feedback on this proposal on the Single Family Policy Drafting Table through June 30, 2023.

For full report, please click the source link above.

HUD Awards more than $14.4 Million in Housing Counseling Grants

Posted on June 23, 2023 by Safeguard

Industry Update
June 21, 2023

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

The U.S. Department of Housing and Urban Development’s (HUD) Office of Housing Counseling (OHC) is announcing today that it has awarded more than $14.4 million in housing counseling grant funding to 180 housing counseling organizations. The awards will support the comprehensive housing counseling services provided by grantees to homebuyers, homeowners, and renters, and will help to continue the important work that began in 2021 to reach deeper into underserved communities through partnerships between HUD-approved housing counseling agencies, Historically Black Colleges and Universities (HBCUs), and other Minority Serving Institutions (MSIs).

“Homeownership is the primary way most people in this country build wealth. It has the power to transform not only your life, but the lives of your family members,” said HUD Secretary Marcia L. Fudge. “Housing counseling services help ensure current and prospective homeowners have all the tools they need to purchase and maintain the homes of their dreams.”

“Partnering with a housing counselor empowers individuals and families with the education and resources they need to make informed decisions regarding their housing needs,” said Assistant Secretary for Housing and Federal Housing Commissioner Julia Gordon. “These awards help to ensure that households across the country have access to high quality housing counseling services, particularly those for whom systemic barriers and racial inequities have made it difficult to obtain safe and affordable housing.”

“We are pleased to fund these HUD-approved housing counseling agencies that offer vital resources to consumers, including pre-purchase homebuying information, foreclosure and rental eviction prevention, mortgage options for seniors seeking to age-in-place, and disaster recovery counseling,” said Deputy Assistant Secretary for Housing Counseling David Berenbaum.

For full report, please click the source link above.

The CFPB Intends to Identify Ways to Simplify and Streamline the Existing Mortgage Servicing Rules

Posted on June 21, 2023 by Safeguard

Industry Update
June 15, 2023

Source: Consumer Financial Protection Bureau

Borrowing to buy a home is one of the biggest financial decisions a family will make. Mortgage servicers are the companies responsible for processing payments and managing mortgage accounts, and they play a critical role in assisting homeowners with repayment. Borrowers don’t choose these companies – servicers are chosen by the lender or investor that owns the mortgage.

In the mid-2000s, predatory mortgage practices spread throughout the country. Many large financial institutions with mortgage servicing operations experienced serious breakdowns. This resulted in a crisis where 10 million homes ended up in foreclosure between 2006 and 2014.

The foreclosure crisis was an important catalyst for the creation of the Consumer Financial Protection Bureau. Congress required the CFPB to implement new rules to make the mortgage market work better. These new rules first took effect in 2014. During the COVID-19 pandemic, we saw how these rules worked when unemployment spiked. The CFPB observed that there were places where the rules could be revised to reduce unnecessary complexity.

Last fall, the CFPB asked the public for input on ways to reduce risks for borrowers who experience disruptions in their ability to make mortgage payments, including input on the mortgage forbearance options available to borrowers. In particular, we sought input on the features of pandemic-related forbearance programs and whether there are ways to automate and streamline long-term loss mitigation assistance. We received comments from housing organizations, homeowner advocates, mortgage servicers, and many others.

Many commenters noted that borrowers seeking help on their mortgages can face a paperwork treadmill that hurts both homeowners and mortgage servicers. According to commenters, the temporary pandemic-related changes we made to the mortgage servicing rules helped alleviate this problem and get borrowers accommodations more quickly.

Commenters also expressed concern that borrowers often incur servicing fees and experience negative credit reporting while waiting for their mortgage servicers to review their options. These penalties can hurt borrowers even after loss mitigation options have been implemented, and they can sometimes even prevent loan modifications and other interventions that allow borrowers to keep their homes.

When homeowners who struggle to make payments get the help they need without unnecessary delay or hurdles, it is better for borrowers, servicers, and the economy as a whole. The CFPB will be using this input from commenters to propose ways to simplify and streamline mortgage servicing rules. We will propose streamlining only if it would promote greater agility on the part of mortgage servicers in responding to future economic shocks while also continuing to ensure they meet their obligations for assisting borrowers promptly and fairly.

We also continue to welcome petitions on potential amendments to the CFPB’s rules.

For full report, please click the source link above.

Share of Mortgage Loans in Forbearance Decreases to .49% in May

Posted on June 21, 2023 by Safeguard

Industry Update
June 20, 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 2 basis points from 0.51% of servicers’ portfolio volume in the prior month to 0.49% as of May 31, 2023. According to MBA’s estimate, 245,000 homeowners are in forbearance plans. Mortgage servicers have provided forbearance to approximately 7.9 million borrowers since March 2020.

In May 2023, the share of Fannie Mae and Freddie Mac loans in forbearance decreased 1 basis point to 0.23%. Ginnie Mae loans in forbearance decreased 5 basis points to 1.06%, and the forbearance share for portfolio loans and private-label securities (PLS) decreased 3 basis points to 0.58%.

“The number of loans in forbearance is reaching levels not seen since the beginning of March 2020, prior to the passage of the CARES Act,” said Marina Walsh, CMB, MBA’s Vice President of Industry Analysis. “Today, more than 96 percent of homeowners are current on their mortgages, thanks to the favorable jobs market and the success of loss mitigation options over the past three years.”

For full report, please click the source link above.