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MBA National Mortgage Servicing Conference & Expo

The Mortgage Bankers Association hosted its annual servicing conference last month, welcoming members from all aspects of the mortgage field services industry to sunny Orlando, FL.  Safeguard’s VP of Business Development Tod Burkert was honored to introduce this year’s keynote speaker, Captain Mark Kelly, an American here who inspires others to be their best while remaining true to their core values. During Kelly’s keynote address he discussed purpose, perseverance and the power of preparation. 

The opening session also featured a welcome from Bill Cosgrove, MBa’s 2014 chairman-elect and David H. Stevens, MBA’s president and chief executive officer. The Deputy Director of the Consumer Financial Protection Bureau Steven L. Antonakes also addressed the attendees.

Additionally, Safeguard was honored to participate on two session panels during this conference.  These session summaries can be found below.

Post-Foreclosure Resolution – Best Practices

Moderator: Jodi Gaines, Claims Recovery Financial Services

Panelists:

• Kellie Chambers, Safeguard Properties
• Matt Martin, U.S. Department of Housing and Urban Development
• Sarah Martin, U.S. Department of Housing and Urban Development
• Andrew M. Trevayne, U.S. Department of Veteran Affairs

Key Requirements
The panel started the session by reviewing the key requirements in ML-13-18 and outlining best practices. This includes discussions around the following topics: Condo and HOA foreclosure requirements; condo and HOA payments of dues prior to conveyance; best practices for handling an uncooperative and non-responsive condo and HOA’s; conveying with clear marketable title, which is still the number one reason for reconveyance; and payment of utilities.
 
The key is to make sure these fees are updated and paid to avoid title and lien issues. If a condo or HOA is being uncooperative the panel suggested contacting MC&B for direction. Be prepared to outline your efforts in trying to contact the condo or HOA when you reach out to MC&B.
 
Mobile Home Conveyance
When it comes to mobile home conveyance, there are many do’s and don’ts. First, at origination do make sure the title is canceled to the real property. The main reason for reconveyances of mobile homes is lack of clear title. A recommended best practice is to have a process that identifies properties that are mobile home in your servicing platform. This way, when you make your referral to the foreclosure council they know it’s a mobile home.  
 
HUD Best Practices
During this session the panel discussed best practices when it comes to FHA claim payments. It has been found that error codes around taxes, insurance, attorney fee and UPB discrepancies are the main reason for claim payment delays.  By monitoring and correcting these in a timely manner, delays will be reduced. Often times claim blocks are not cured prior to submitting a claim to HUD for payment. These include title issues, failure to service timely, and property conditions. These claim blocks must be cured for payment to be released.
 
What MC&B looks for in their claim reviews is the following: HIPR is reviewed for conditions that are surchargeable.  If conveying with non-surchargeable damage a best practice is that this needs to be clearly documented when filing your claim to HUD with supporting documentation that shows the damage is not surchargeable.

The panel also noted that HUD is considering using P260 documentation for supporting supplement claims.
 
VA Best Practices

• Resolving utilities
• Provide CMT within 60 days or property will be reconveyed
• Providing valid appraisal 

Property Preservation Best Practices
Below are best practices to ensure claimable expenses:

• Proper photo document (before, during and after) with proper date stamps
• Meeting required investor and insurer timeframes for securing, conveying, inspecting, yard maintenance and eviction
• Audit documentation should include use of cost estimating software for price validation, dump receipts, and storage receipts

Below are best practices for timely conveyance:

• Monthly interior inspections must be completed for compliance and to address any new conditions
• Securing timely and addressing adverse conditions immediately to prevent further deterioration of the property
• Timely bid submission of overall work that is required
• All supporting documentation readily available
• Timely resolution of code violations
• Timely payment of condo, HOA, utilities, taxes and any other outstanding invoices that impact title or recording of HUD Deed
• Timely recorded foreclosure deeds , as well as timely and properly executed deeds to HUD (do not send to record without written instruction)
• Good communication and collaboration between property preservation, claim filers, attorney firms, title companies, MCB and HUD

Conclusion
Overall, the panel provide excellent insight and recommendations on how to improve the post foreclosure process, which if implemented will improve audit results, speed up claim payment and reduce and avoid reconveyances. 

Emerging Technology, Data Analysis Strategies and Tactics for Property Preservation and REO

Moderator: Jim Taylor, Wells Fargo Home Mortgage

Panelists:

• Robin Kramer, CitiMortgage
• George Mehok, Safeguard Properties          
• Sean Ryan, Aspen Grove Solutions
• Ben Windust, ServiceLink (a Black Knight Company)

Risks
The session started off focusing on a number of emerging risks in the property preservation and REO space. The panel cited conflicting investor requirements, escalating complaints and media coverage, and extended foreclosure timelines as a few of the factors leading to new examination activities focused on this area.

The panel shared some tips for navigating around these risks, underscoring the importance of having leadership whose vision will continue to evolve alongside, or ahead of, the industry practices. Quick action to resolve escalated issues and a systematic process to evaluate and learn from these challenges was recommended.

Integrated Solutions
The panel presented an overview of an integrated field services quality assurance platform. It was highlighted that it is critical to have strong people, a process, and technology in place, but noted that the investment really belongs in integrating the technology. The integrated solution, Safeguard Technologies was presented. This solution features steps of assignment, collection, assessment, analysis, visualization and integration.

Statistics from two years ago, when five percent of Safeguard’s one million inspections were completed via mobile device, was compared to current statistics, which put this number at 97 percent. Even further, 50 percent of the results coming in via mobile device to Safeguard are transmitted within 30 minutes of inspecting the asset. This can greatly reduce the time involved with addressing an adverse property condition.

It has been determined that the most valuable addition to the solution in recent months has been the ability to visualize results using mapping technology. Filtering by loan and property parameters, as well as incorporating big events, such as a weather disaster, allows servicers and vendors alike the ability to zero in on areas of priority and understand situations at a macro level. Quality is improved and risk is reduced when such massive and powerful data is converted to information using such a tool.

Compliance through Technology
During this session the current industry environment was also discussed, noting that it is no longer enough to comply. Companies must be able to prove compliance and must also prove that their providers are compliant. It was emphasized that compliance must be reproducible, and this can only be achieved through technology.

Aspen Grove’s mobile application connects financial institutions to the operators in the field and validates the identity of the individual completing work at a property. The panel cited the evolution of moving technology from the hands of the business to the hands of the operators.

Statistics were shared regarding complaint patterns and the volume of loans entering foreclosure. It was concluded that the deterioration of property condition is strongly tied to foreclosure timelines. Mobile technology can play a large role in pushing the industry to make more real-time decisions for property maintenance.

Registration Requirements
Both vacant property registration and foreclosure registration have their own requirements. The panel discussed the option of the industry to move toward a more cost-effective means to provide cities with information needed to protect their communities.

Potentially Valuable Tools
It was suggested that remote monitoring could be a valuable tool for the industry, but the business process is currently limited in its use of the technology. Once the questions of which properties should utilize the technology and how it can be paid for are answered, this tool could be of great use.

Vendor scorecards have played a large role in improving quality throughout businesses in the industry. They will continue to evolve with technological advances, but are only as strong as the data put into them. Data must be relevant and recent in order to be useful.

Suggestions of centralizing property-related data were met with interest, but skepticism around getting all the industry players in agreement and integrating the data with many of the antiquated systems used in the industry.

Conclusion
Technology is a powerful resource for the field services industry and can aid in keeping companies compliant, improving quality control and minimizing timelines. Technological advancements will continue to be made, but the industry as a whole needs to evaluate which tools bring the most value and how to integrate solutions appropriately so that they are being utilized to their full potential.

The MBA National Mortgage Servicing Conference & Expo was held in Orlando, FL.