Safeguard Properties

Fannie REO Inventory Essentially Unchanged in Q1

Posted on by Safeguard

Industry Update
May 8, 2023

Source: CalculatedRisk 

Fannie reported results for Q1 2023. Here is some information on single-family Real Estate Owned (REOs).

Foreclosure have increased slightly since the end of the foreclosure moratorium.

Fannie Mae reported the number of REOs increased to 8,780 at the end of Q1 2023, essentially unchanged from 8,779 in Q4 2022, and up 18% from 7,430 at the end of Q1 2022.
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.

 

 

 

 

 

 

 

 

 

 

 

HUD Allocated $382 Million to Help States Produce Affordable Housing

Posted on by Safeguard

Industry Update
May 3, 2023

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

The U.S. Department of Housing and Urban Development (HUD) allocated $382 million through the nation’s Housing Trust Fund (see list of state allocations below). The Housing Trust Fund (HTF) is an affordable housing production program that complements existing Federal, state and local efforts to increase and preserve the supply of decent, safe, and sanitary affordable housing for extremely low- and very low-income households, including families experiencing homelessness.

“We’re proud to invest in states to create more affordable housing,” said HUD Secretary Marcia L. Fudge. “The Biden-Harris Administration is committed to improving the nation’s housing affordability crisis and the Housing Trust Fund provides communities resources they need to produce more safe, sustainable and affordable housing.”

HTF is a formula-based program for States and U.S. Territories. By law, each state is allocated a minimum of $3 million. State affordable housing planners will use these funds for the following eligible activities:

  • Real property acquisition
  • Site improvements and development hard costs
  • Related soft costs
  • Demolition
  • Financing costs
  • Relocation assistance
  • Operating cost assistance for rental housing (up to 30% of each grant)
  • Reasonable administrative and planning costs.

The Housing Trust Fund is being capitalized through contributions made by Fannie Mae and Freddie Mac. In December 2014, the Federal Housing Finance Agency (FHFA) directed these Government Sponsored Enterprises (GSEs) to begin setting aside and allocating funds to the Housing Trust Fund. The Housing Trust Fund helps to strengthen and broaden the Federal housing safety net for people in need by increasing production of, and access to, affordable housing for the nation’s most vulnerable populations. One hundred percent of funds must be used for extremely low-income families. This targeting ensures the priority of this program is helping those with the greatest needs.

For full report, please click the source link above.

 

 

 

 

 

 

 

 

 

 

 

FHFA Announces Rescission of Enterprise Upfront Fees Based on Debt-To-Income Ratio

Posted on by Safeguard

Industry Update
May 10, 2023

Source: Federal Housing Finance Agency

The Federal Housing Finance Agency (FHFA) announced that it has rescinded the upfront fees based on borrowers’ DTI ratios for loans acquired by Fannie Mae and Freddie Mac (the Enterprises). FHFA announced in March it would delay implementation in order to engage with industry stakeholders and better understand their concerns.

“I appreciate the feedback FHFA has received from the mortgage industry and other market participants about the challenges of implementing the DTI ratio-based fee,” said Director Sandra L. Thompson. “To continue this valuable dialogue, FHFA will provide additional transparency on the process for setting the Enterprises’ single-family guarantee fees and will request public input on this issue.”

Consistent with the Enterprise Regulatory Capital Framework finalized in 2020, appropriately capitalizing each Enterprise is critical to ensuring that they are well positioned to meet their mandate of providing liquidity and stability to the secondary mortgage market and supporting access to affordable mortgage credit throughout the nation.

Additional details about the upcoming Request for Input (RFI) on the single-family guarantee fee pricing framework will be released shortly.​

For full report, please click the source link above.

 

 

 

 

 

 

 

 

 

 

 

FEMA Major Disaster Declaration – Kentucky Severe Storms, Straight-line Winds, Flooding, Landslides and Mudslides

Posted on by Safeguard

FEMA Alert
May 9, 2023

FEMA has issued a Major Disaster Declaration for the state of Kentucky to supplement state, tribal and local recovery efforts in areas affected by severe storms, straight-line winds, flooding, landslides and mudslides from February 15-20, 2023.  The following areas have been approved for assistance:

Public Assistance: 

  • Bell
  • Breathitt
  • Caldwell
  • Carter
  • Clay
  • Elliot
  • Floyd
  • Harlan
  • Hart
  • Johnson
  • Knott
  • Lawrence
  • Lee
  • Leslie
  • Letcher
  • Magoffin
  • Morgan
  • Owsley
  • Perry
  • Powell
  • Whitley
  • Wolfe

 

Kentucky Severe Storms, Straight-line Winds, Flooding, Landslides, and Mudslides (DR-4711-KY)

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

City Leaders Launch New Legislation to Combat Vacant Home Crisis

Posted on by Safeguard

Industry Update
April 28, 2023

Source: 13wham.com

Boarded-up windows, crumbling foundations and falling siding. That’s what some people see along parts of Hudson Avenue.

According to the city’s vacant property management website, the northeast section has the biggest number of vacant homes.

“Some people have as much business being a landlord as I have piloting a space shuttle,” Mayor Malik Evans said. “They shouldn’t be in the business.”

Three homes on Hudson Avenue are all shown to be owned by the same local LLC.

All of them have been left vacant and falling apart.

“We have also added language to various provision of our code that require owners, who own in the name of limited liability corporations (LLC), which is a very common practice, to identify the individuals behind that entity,” said Linda Kingsley, corporation counsel for the city. “This may not be a popular proposal for some landlords.”

Evans, alongside other city leaders, announced three new pieces of legislation Friday targeting property issues.

One measure would establish a vacant building registry that would take effect next year.

“This registry will require property owners to alert the city if the building they own remains vacant for more than 60 days,” Evans said. “As we all know, the city is facing a growing vacant building crisis. These buildings by their very nature present significant potential health and safety hazards to their neighborhoods, to city employees and the general public.”

The second piece establishes a landlord/tenant bill of rights that would take effect in August.

“I believe this bill of rights will be an essential step to addressing the housing concerns we have here in Rochester,” Evans said. “It’s critical that all sides clearly understand their responsibilities.”

The third measure would raise fines for code infractions and authorize the city’s corporation counsel to seek fines and penalties when taking legal action against a property owner.

“The message needs to be sent that should you refuse to address your violations and force us to take legal action, there will be stiff and very expensive penalties,” said Kingsley.

The legislative proposals will be considered by City Council at its May 23 meeting.

For full report, please click the source link above.

 

 

 

 

 

 

 

 

 

 

 

Newburgh Land Bank Receives $1.8 Million Grant from State

Posted on by Safeguard

Industry Update
April 29, 2023

Source: Mid Hudson News

The Newburgh Community Land Bank has been awarded $1.8 million by the Housing Trust Fund Corporation and State Homes and Community Renewal. The funding was granted after a competitive application process open to all New York State Land Banks as part of the Land Bank Initiative Phase II.

The nonprofit organization partners with city government to strengthen the community by acquiring, stabilizing, and facilitating the redevelopment of blighted and abandoned properties, returning them to productive use, and growing local property tax bases.

The Newburgh Land Bank will be investing the monies in several projects in its North of Broadway target neighborhood, particularly on Lander Street, South Miller and surrounding streets, where the land bank has already reactivated over 100 buildings and vacant lots.

“This funding will afford us the opportunity to recharge our efforts to revitalize the City’s vulnerable housing stock, while adding new housing to long-dormant lots,” said Lisa Daily, land bank chairwoman.

For full report, please click the source link above.

 

 

 

 

 

 

 

 

 

 

 

City Council Members: Demo 200 Program has a Place in Aiken

Posted on by Safeguard

Industry Update
May 2, 2023

Source: Aiken Standard

The suspended Demo 200 program has a place in Aiken according to five members of Aiken City Council.

The city council established the program in 1999. It allows residential property owners to pay the city $200 to have a “dilapidated, uninhabitable structure” demolished and removed from their property and retain the land.

City Manager Stuart Bedenbaugh said in a memorandum to city council that the city has the option to use federal Community Block Development Grant funds provided by the federal Department of Housing and Urban Development to demolish the structures if the structures are located in a low- or moderate-income area.

In 2020, city council amended the program to include an option for non-residential property owners to pay $2,000 to have a “substandard” structure demolished and removed.

The section of the city code allowing non-residential property owners to have structures demolished also includes provisions requiring the non-residential property owner to have owned the property for two years and that the cost of the demolition is a loan of up to $20,000 that is forgiven by the city over a four-year period. If the non-residential property owner sells the property before the loan is forgiven, the balance comes due.

The 2020 amendment also allows the city manager to waive the requirements of the non-residential property program for a nonprofit organization that is necessary to provide community services. It also establishes that repeat applicants for the residential demolition program fall under the non-residential property provision.

Bedenbaugh said 20 structures have been demolished under the program since 2019 including nine in 2019, two in 2020, six in 2021, two in 2022 and one in 2023.

He said he suspended the program Feb. 28, 2023 in accordance with a request from council to study the program and discuss its future at later meetings.

Monday evening, five members of city council participated in the first of those meetings: a tour to view structures that could be demolished through the program. The council also heard from code enforcement personnel with the city and spoke to the neighbors of the properties with a structure that could be demolished under the program.

For full report, please click the source link above.

 

 

 

 

 

 

 

 

 

 

 

Funding Helps Trotwood Blighted Property Demolition Plan

Posted on by Safeguard

Industry Update
May 2, 2023

Source: wdtn.com

The City of Trotwood continues its push to demolish blighted properties. Officials say the work would not be possible without help from the state and the Montgomery County Landbank.

Through this collaborative effort, they have been able to cover more ground in just a year of the project, tearing down nearly three dozen buildings so far.

The state of Ohio is covering 75 percent of the cost to demolish 35 blighted properties throughout Trotwood.

The Montgomery County Landbank is paying half of the remaining 25 percent. Landbank officials said that Trotwood consistently shows up when offers like this are on the table.

“Each time we’ve offered a program like this, Trotwood has been at the table to take advantage of it,” Mike Grauwellman, Montgomery County Landbank Executive Director, said. “So, kudos to the Trotwood community, folks, in identifying those and doing the work that they need to do to allow us to do the work that we are financed to do by the state.”

Trotwood officials said they are grateful for this funding because it aids in the housing crisis that was heightened in 2019 with over 1100 properties damaged by the Memorial Day tornadoes.

“We want to reestablish that sense of pride and that sense of hope people have,” Kellum said. “We want to create more housing. We want to infill the backstop. We want to have our residents return. We still have residents who have been displaced because of the 2019 tornadoes. So, until we have all of that housing replaced, our population suffers.”

For full report, please click the source link above.

 

 

 

 

 

 

 

 

 

 

 

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

Posted on by Safeguard

FEMA Alert
May 5, 2023

FEMA has issued a Major Disaster Declaration for the state of Alabama to supplement state, tribal and local recovery efforts in areas affected by severe storms, straight-line winds, and tornadoes from March 24-27, 2023.  The following areas have been approved for assistance:

Public Assistance: 

  • Chambers
  • Colbert
  • Coosa
  • Elmore
  • Lauderdale
  • Macon
  • Marion
  • Morgan
  • Randolph
  • Tallapoosa

 

Alabama Severe Storms, Straight-line Winds, and Tornadoes (DR-4710-AL)

President Joseph R. Biden, Jr. Approves Major Disaster Declaration for the State of Alabama

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

Ginnie Mae Shares Further Details on the LIBOR Transition of LIBOR Classes of Ginnie Mae Multiclass Securities

Posted on by Safeguard

Industry Update
May 1, 2023

Source: Ginnie Mae

With the publication of Multiclass Participants Memorandum (MPM) 23-01​, Ginnie Mae announced it will transition all outstanding LIBOR Classes of Ginnie Mae Multiclass Securities after June 30, 2023, to CME Term SOFR plus tenor spread adjustment in accordance with the Adjustable Interest Rate (LIBOR) Act (LIBOR Act) and the related regulations, and the recommendations of the Alternative Reference Rates Committee (ARRC).

In July 2017, the United Kingdom’s Financial Conduct Authority (FCA) announced that it would no longer persuade or compel contributing banks to submit rates used to calculate London Interbank Offered Rate (LIBOR) after December 31, 2021. On March 5, 2021, the Intercontinental Exchange (ICE) Benchmark Administration Limited (IBA) announced that it intended to cease publication of the overnight and one, three, six and twelve-month USD LIBOR immediately following the LIBOR publication on June 30, 2023.

Congress passed the LIBOR Act as part of the Consolidated Appropriations Act, 2022 (Pub. L. 117-103), in part, to create a clear and uniform process for replacing LIBOR in existing contracts where the terms do not provide for the use of a clearly defined or practicable replacement benchmark date, without affecting the ability of parties to use any appropriate benchmark rate in a new contract. Generally, for existing LIBOR-based ARMs without language providing for a specific replacement index, the default replacement index will be a spread-adjusted term rate based on the SOFR, as provided under the LIBOR Act.

The ARRC, in its Best Practices last updated on May 4, 2022, recommended the use of Term SOFR rates published by the CME Group Benchmark Administration Limited (CBA) plus the applicable spread adjustment as a fallback for legacy LIBOR adjustable-rate mortgages and the use of SOFR averages for new originations. Ginnie Mae has chosen to follow ARRC’s best practices recommendation.

Ginnie Mae will publish additional Participant Memoranda relating to the LIBOR/SOFR transition in the coming weeks.

For full report, please click the source link above.

 

 

 

 

 

 

 

 

 

 

 

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CEO

Alan Jaffa

Alan Jaffa is the Chief Executive Officer for Safeguard Properties, steering the company as the mortgage field services industry leader. He also serves on the board of advisors for SCG Partners, a middle-market private equity fund focused on diversifying and expanding Safeguard Properties’ business model into complimentary markets.

Alan joined Safeguard in 1995, learning the business from the ground up. He was promoted to Chief Operating Officer in 2002, and was named CEO in May 2010. His hands-on experience has given him unique insights as a leader to innovate, improve and strengthen Safeguard’s processes to assure that the company adheres to the highest standards of quality and customer service.

Under Alan’s leadership, Safeguard has grown significantly with strategies that have included new and expanded services, technology investments that deliver higher quality and greater efficiency to clients, and strategic acquisitions. He takes a team approach to process improvement, involving staff at all levels of the organization to address issues, brainstorm solutions, and identify new and better ways to serve clients.

In 2008, Alan was recognized by Crain’s Cleveland Business in its annual “40-Under-40” profile of young leaders. He also was named a NEO Ernst & Young Entrepreneur Of The Year® Award finalist in 2013.

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Esq., General Counsel and EVP

Linda Erkkila

Linda Erkkila is the General Counsel and Executive Vice President for Safeguard Properties, with oversight of legal, human resources, training, and compliance. Linda’s broad scope of oversight covers regulatory issues that impact Safeguard’s operations, risk mitigation, strategic planning, human resources and training initiatives, compliance, insurance, litigation and claims management, and counsel related to mergers, acquisition and joint ventures.

Linda assures that Safeguard’s strategic initiatives align with its resources, leverage opportunities across the company, and contemplate compliance mandates. She has practiced law for 25 years and her experience, both as outside and in-house counsel, covers a wide range of corporate matters, including regulatory disclosure, corporate governance compliance, risk assessment, compensation and benefits, litigation management, and mergers and acquisitions.

Linda earned her JD at Cleveland-Marshall College of Law. She holds a degree in economics from Miami University and an MBA. Linda was previously named as both a “Woman of Influence” by HousingWire and as a “Leading Lady” by MReport.

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COO

Michael Greenbaum

Michael Greenbaum is the Chief Operating Officer of Safeguard Properties, where he has played a pivotal role since joining the company in July 2010. Initially brought on as Vice President of REO, Mike’s exceptional leadership and strategic vision quickly propelled him to Vice President of Operations in 2013, and ultimately to COO in 2015. Over his 14-year tenure at Safeguard, Mike has been instrumental in driving change and fostering innovation within the Property Preservation sector, consistently delivering excellence and becoming a trusted partner to clients and investors.

A distinguished graduate of the United States Military Academy at West Point, Mike earned a degree in Quantitative Economics. Following his graduation, he served in the U.S. Army’s Ordnance Branch, where he specialized in supply chain management. Before his tenure at Safeguard, Mike honed his expertise by managing global supply chains for 13 years, leveraging his military and civilian experience to lead with precision and efficacy.

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CFO

Joe Iafigliola

Joe Iafigliola is the Chief Financial Officer for Safeguard Properties. Joe is responsible for the Control, Quality Assurance, Business Development, Marketing, Accounting, and Information Security departments. At the core of his responsibilities is the drive to ensure that Safeguard’s focus remains rooted in Customer Service = Resolution. Through his executive leadership role, he actively supports SGPNOW.com, an on-demand service geared towards real estate and property management professionals as well as individual home owners in need of inspection and property preservation services. Joe is also an integral force behind Compliance Connections, a branch of Safeguard Properties that allows code enforcement professionals to report violations at properties that can then be addressed by the Safeguard vendor network. Compliance Connections also researches and shares vacant property ordinance information with Safeguard clients.

Joe has an MBA from The Weatherhead School of Management at Case Western Reserve University, is a Certified Management Accountant (CMA), and holds a bachelor’s degree from The Ohio State University’s Honors Accounting program.

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Business Development

Carrie Tackett

Business Development Safeguard Properties