Five Star Default Servicing Conference & Expo
Safeguard was honored to once again be the hosting sponsor of the 2015 Five Star Conference and Expo, which was held at the Hilton Anatole in Dallas, TX. This year’s conference included a special presentation given by Dallas Cowboys quarterback Tony Romo at the Military Heroes Keys for Life celebration. The presentation was followed by an extended concert from platinum selling recording artist Wynonna and the Big Noise. The sessions during the conference focused on compliance, foreclosure, investment, property management, REO, servicing and single-family rental. Safeguard participated on two panels. Summaries of these sessions are below.
Best Practices – Industry, Investor and Community Standards
Moderator: Todd Pawlinski, Caliber
- Jason Chapman, Fannie Mae
- Kellie Chambers, Safeguard Properties
- Matt Martin, HUD
Property Preservation Proactivity
During this session, panelists discussed initiatives by property preservation vendors to proactively work with code enforcement to improve compliance efforts. The importance of developing a more direct and personal relationship with code compliance officers in the field is important. It is also critical that property preservation vendors focus on educating their own field services vendors. Panelists agreed that the education process must start at the onboarding stage, with continued and persistent coaching and training.
Panelists shared the processes they are implementing to reduce conveyance timelines and avoid costly reconveyances, noting that quality control checks are critical to the process. A holistic approach, rather than a “work order by work order” approach, needs to be taken for each property. The need to scorecard those in the field, as well as assure that quality standards are pushed down to those actually doing the work, are critical in meeting industry standards. Obtaining a comprehensive, descriptive and well documented condition report at the time of the first time vacancy securing is a key factor in preserving the property over time. Additionally, focusing more on deterioration of the property at the presale stage, as opposed to waiting until a property is post-sale or REO, would significantly reduce reconveyances, post-sale maintenance and repair costs. Panelists agreed that uncertainty about the definition of “in convey condition” is leading to more bids being pushed to servicers to avoid reconveyances.
The panel discussed the key components to assuring industry quality standards are met. Consistency in work and clear expectations in the field are good foundations to increase quality. Quality control is also a key component to meeting quality standards, and quality control is enhanced by providing real-time feedback and data sharing with those providing services in the field.
Advancements in technology, including mobile technology, have dramatically assisted in getting data to those whose performance is being evaluated. Additionally, upcoming use of video technology in the field is likely to bring more transparency regarding properties, thereby improving long-term preservation efforts.
Future of Preservation and Data Driven Decisions
Adrienne Villalobos, Penny Mac
Mark Hinkle, MCS
George Mehok, Safeguard Properties
Terry Sadowski, Assurant Field Asset Services
Utilizing Technology to Reduce Risk
During this session, panelists discussed utilizing technology to reduce risk, noting that improved mobile applications and mobile speed improve results. The panel emphasized that real-time technology will offer great advancement in critical and long-term preservation efforts, such as identifying risk during the first entry into the property. Advancement in geo-location and mapping were additional examples of key technology advancements that greatly reduce risk.
The panel addressed the question of what can servicers do to make it easier for field services companies to meet required standards in the field. Providing key data points regarding the status of the property upfront is critical to understanding a property. Data such as loan status, limitations regarding borrower contact, and property specific parcel ID are types of data that can be used to proactively avoid mistakes in the field. Improvements in technology allow for quicker decisions in the field, and the more data servicers can provide to vendors to employ in the field, the more accurate and efficient reporting will be. Using a risk-based approach and focusing efforts on the most critical properties first, would provide better long-term results. A shift in this direction is recommended.
Technology for Validating and Compliance Purposes
The panel discussed using technology to help vendors know that services were performed correctly while still in the field. This could greatly enhance results, both in terms of speed and quality of preservation efforts.
Technology is also an important factor in improving compliance. In today’s environment, all servicing parties have the ability to track compliance requirements and changes to assure appropriate implementation. Improvements in video and audio greatly improve the end result and provide great transparency into the condition of a property, which in turn allows a more proactive approach to preservation and reduces long-term preservation costs associated with reconveyances and repairs.
The Five Star Default Servicing Conference & Expo was held in Dallas, TX.