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As Nonbank Servicers Grow, Another State Adds Licensing for Them

Industry Update
January 24, 2018

Pennsylvania will soon start accepting applications for new servicing licensing requirements added to address the growth of nondepositories.

The Pennsylvania Department of Banking and Securities plans to start accepting new applications for nonbank servicing licenses through the Nationwide Multistate Licensing System starting April 1. The deadline for the receipt of applications is June 30.

The amendments to the state’s Mortgage Licensing Act address national growth in the market share of nonbank servicers and give Pennsylvania a similar authority as 36 other states, according to a press release issued by the department Tuesday.

Nonbank servicers previously have not been licensed in the state, and servicing issues have been one of the top types of complaints the department has received in recent years.

Licensed servicers must have and maintain the following: a minimum net worth of $250,000, fidelity bond coverage with accordance with Fannie Mae or Freddie Mac’s guidelines, and a $500,000 surety bond, according to Pennsylvania’s Senate Bill 751, which Gov. Tom Wolf signed into law last month.

Servicers are defined as “a person who engages in the mortgage loan business by directly or indirectly servicing a mortgage loan” in the bill.

Mortgage lenders that are also servicers don’t need a separate license, but companies that aren’t lenders and service loans for others do, according to a report on the amendment by Leonard Bernstein and Robert Jaworski, attorneys at law firm Reed Smith.

Bank affiliates have some exemption from licensing but have to comply with other MLA requirements. While Pennsylvania exempts originators with offices in the state that don’t conduct transactions there from the MLA, the amendment doesn’t exempt servicers.

The department is open to industry inquiries about the new rules.

“We believe in smart regulation, not regulation for the sake of regulation,” Department Secretary Robin Wiessmann said in the press release. “At the Department of Banking and Securities, we welcome questions and discussions.”

Source: National Mortgage News

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.

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.

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.

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.

Business Development

Carrie Tackett

Business Development Safeguard Properties