Outsourcing Maximizes Resources

Published in Aug?2006 Managing REO Magazine

By Robert Klein, CEO
Safeguard Properties

Management personnel continually struggle to efficiently deploy resources to accomplish organizational goals and objectives.?? In order to compete most efficiently in today?s business environment, many organizations are now utilizing third parties to outsource ?non? core business activities thereby allowing management to focus on the core activities that drive the growth and revenue of an organization.?

Outsourcing ?non? core business activities eliminates the necessity for investing in hiring, training, equipping, and providing space and benefits for new employees. It provides management the flexibility to focus on core operations and new service offerings that generate revenue. There are a number of benefits to outsourcing in the mortgage loan servicing industry that deserve careful consideration, specifically in the mortgage field services function that is the focus of this article.? Potential benefits include insulation from liability, efficiencies provided through the streamlining and customization of business processes, and the ability to outsource services through the entire lifecycle of a loan to a single source provider.

Avoiding Liability

Mortgage field service companies will typically assume the liability for incidents related to activities they perform.? When cleaning out debris for instance, proper handling and disposal of the mortgagor personal property can avoid potential costly litigation.??? Importantly,? the mortgage field services provider will also insulate their clients from liability incurred for the failure to adhere to rules and regulations of investors such as HUD, FHA,? and the VA. Reputable field service providers will insulate their clients from such liability saving the mortgagee the from such legal entanglements.?

When selecting a mortgage field services partner to outsource their field services function, the mortgage services company must take great care to select an organization with adequate insurance, extensive business process management capabilities, and comprehensive policies and procedures that provide adequate documentation and evidence to ensure adherence to applicable rules and regulations. Comprehensive supporting documentation that includes digital photographs and electronic field reports, adequately maintained in accordance with applicable records retention policies will ensure that risks are mitigated and liabilities minimized.

Streamlining and Customizing Processes

The mortgage industry as a whole is extremely process-oriented, making it among the most paperwork-intensive industries.? Even in today?s business environment where the use of paper is minimized through electronic content management applications, comprehensive file and business process management activities can be extensive. In order to ensure adherence to applicable rules and regulations, the potential field services outsourcing partner must demonstrate the ability to automate business activities to ensure the efficient and effective compliance with an organizations policies.? When selecting a field services partner, it is important to validate the potential partner?s ability and commitment to customize their processes to meet organizational needs. This includes:

  • Business process flexibility in accepting and processing orders
  • Efficiency of pricing, bid, and invoicing procedures
  • The level of automation provided to facilitate real time service updates and supporting documentation

Industry practice has traditionally allowed for Orders to be placed in bulk using spreadsheets or individually via email or uploaded through a secure web site.? All orders should be acknowledged within one business day.? To maximize efficiencies, the mortgage industry has seen a material increase in the automation of business processes between Field Servicer systems and Loan Servicer systems. This greatly improves the efficiency of activities by eliminating duplicate data entry and minimizing error rates inherent in manual processes.

Likewise, receiving, reviewing, and approving invoices can be automated and streamlined for the loan servicer when the field service outsourcer? has the flexibility to? customize its billing process to integrate? with the client?s accounts payable processes.? This reduces the asset managers? work load related to invoicing, allowing them to focus more on property care quality and marketing effectiveness.?

Expanding Services

The leading field service providers are increasingly working with their clients to expand the service offerings available to meet outsourcing needs when, where, and how required.? Examples include creative pricing structures and expanding responsibility to include servicing of the Real Estate Owned (REO) portfolio, Many times the field service provider can provide all the necessary services for a portfolio of properties more cost effectively that can be accomplished in house or through multiple service providers.

The industry has seen a marked increase in pre-established fixed fee pricing that allows for a one time fee to cover a flat-fee bundles of regular services.? These fixed fee prices can typically be negotiated based on quantity of order and/or the number of services contracted for.? Such a contractual arrangement allows the mortgagee to eliminate a repetitive and time consuming bidding process.? Exceptional cases can still call for a bid, as needed.? Opportunities exist to establish contracting formats that provide for this fixed fee? ?cradle to grave? package of services? from pre-sale to re-sale.

Many national mortgage lenders and servicers deal with thousands of properties in default.? Typically, they also manage an extensive Real Estate Owned (REO) portfolio as well. When outsourcing these activities to a third party, the field services partner is engaged early in the process to safeguard the value of the collateral before and after foreclosure until disposition. This includes maid services, cleaning, and maintaining the ?curb appeal? of the property for marketing and sale.?

As the mortgage services industry looks to the future, it is in their best interest to look closely at potential outsourcing relationships, either by evaluating the cost effectiveness of the services they currently perform in house, or by expanding the role of their current partners.? Management will do well to evaluate these potential outsourcing opportunities to ensure ongoing cost containment and revenue maximization.



Alan Jaffa

Alan Jaffa is the chief executive officer for Safeguard, 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® finalist in 2013.


Chief Operating Officer

Michael Greenbaum

Michael Greenbaum is the chief operating officer for Safeguard. Mike has been instrumental in aligning operations to become more efficient, effective, and compliant with our ever-changing industry requirements. Mike has a proven track record of excellence, partnership and collaboration at Safeguard. Under Mike’s leadership, all operational departments of Safeguard have reviewed, updated and enhanced their business processes to maximize efficiency and improve quality control.

Mike joined Safeguard in July 2010 as vice president of REO and has continued to take on additional duties and responsibilities within the organization, including the role of vice president of operations in 2013 and then COO in 2015.

Mike built his business career in supply-chain management, operations, finance and marketing. He has held senior management and executive positions with Erico, a manufacturing company in Solon, Ohio; Accel, Inc., a packaging company in Lewis Center, Ohio; and McMaster-Carr, an industrial supply company in Aurora, Ohio.

Before entering the business world, Mike served in the U.S. Army, Ordinance Branch, and specialized in supply chain management. He is a distinguished graduate of West Point (U.S. Military Academy), where he majored in quantitative economics.



Sean Reddington

Sean Reddington is the new Chief Information Officer for Safeguard Properties LLC. Sean has over 15+ years of experience in Information Services Management with a strong focus on Product and Application Management. Sean is responsible for Safeguard’s technological direction, including planning, implementation and maintaining all operational systems

Sean has a proven record of accomplishment for increasing operational efficiencies, improving customer service levels, and implementing and maintaining IT initiatives to support successful business processes.  He has provided the vision and dedicated leadership for key technologies for Fortune 100 companies, and nationally recognized consulting firms including enterprise system architecture, security, desktop and database management systems. Sean possesses strong functional and system knowledge of information security, systems and software, contracts management, budgeting, human resources and legal and related regulatory compliance.

Sean joined Safeguard Properties LLC from RenPSG Inc. which is a nationally leading Philintropic Software Platform in the Fintech space. He oversaw the organization’s technological direction including planning, implementing and maintaining the best practices that align with all corporate functions. He also provided day-to-day technology operations, enterprise security, information risk and vulnerability management, audit and compliance, security awareness and training.

Prior to RenPSG, Sean worked for DMI Consulting as a Client Success Director where he guided the delivery in a multibillion-dollar Fortune 500 enterprise client account. He was responsible for all project deliveries in terms of quality, budget and timeliness and led the team to coordinate development and definition of project scope and limitations. Sean also worked for KPMG Consulting in their Microsoft Practice and Technicolor’s Ebusiness Division where he had responsibility for application development, maintenance, and support.

Sean is a graduate of Rutgers University with a Bachelor of Arts and received his Masters in International Business from Central Michigan University. He was also a commissioned officer in the United States Air Force prior to his career in the business world.


General Counsel and Executive Vice President

Linda Erkkila, Esq.

Linda Erkkila is the general counsel and executive vice president for Safeguard and oversees the legal, human resources, training, and compliance departments. Linda’s responsibilities cover regulatory issues that impact Safeguard’s operations, risk mitigation, enterprise strategic planning, human resources and training initiatives, compliance, litigation and claims management, and 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. Her practice spans over 20 years, and Linda’s experience covers regulatory disclosure, corporate governance compliance, risk assessment, executive compensation, litigation management, and merger and acquisition activity. Her experience at a former Fortune 500 financial institution during the subprime crisis helped develop Linda’s pro-active approach to change management during periods of heightened regulatory scrutiny.

Linda previously served as vice president and attorney for National City Corporation, as securities and corporate governance counsel for Agilysys Inc., and as an associate at Thompson Hine LLP. She earned her JD at Cleveland-Marshall College of Law. Linda holds a degree in economics from Miami University and an MBA. In 2017, Linda was named as both a “Woman of Influence” by HousingWire and as a “Leading Lady” by MReport.


Chief Financial Officer

Joe Iafigliola

Joe Iafigliola is the Chief Financial Officer for Safeguard. Joe is responsible for the Control, Quality Assurance, Business Development, Accounting & Information Security departments, and is a Managing Director of SCG Partners, a middle-market private equity fund focused on diversifying and expanding Safeguard Properties’ business model into complimentary markets.

Joe has been in a wide variety of roles in finance, supply chain management, information systems development, and sales and marketing. His career includes senior positions with McMaster-Carr Supply Company, Newell/Rubbermaid, and Procter and Gamble.

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.


AVP, High Risk and Investor Compliance

Steve Meyer

Steve Meyer is the assistant vice president of high risk and investor compliance for Safeguard. In this role, Steve is responsible for managing our clients’ conveyance processes, Safeguard’s investor compliance team and developing our working relationships with cities and municipalities around the country. He also works directly with our clients in our many outreach efforts and he represents Safeguard at a number of industry conferences each year.

Steve joined Safeguard in 1998 as manager over the hazard claims team. He was instrumental in the development and creation of policies, procedures and operating protocol. Under Steve’s leadership, the department became one of the largest within Safeguard. In 2002, he assumed responsibility for the newly-formed high risk department, once again building its success. Steve was promoted to director over these two areas in 2007, and he was promoted to assistant vice president in 2012.

Prior to joining Safeguard, Steve spent 10 years within the insurance industry, holding a number of positions including multi-line property adjuster, branch claims supervisor, and multi-line and subrogation/litigation supervisor. Steve is a graduate of Grove City College.


AVP, Operations

Jennifer Jozity

Jennifer Jozity is the assistant vice president of operations, overseeing inspections, REO and property preservation for Safeguard. Jen ensures quality work is performed in the field and internally, to meet and exceed our clients’ expectations. Jen has demonstrated the ability to deliver consistent results in order audit and order management.  She will build upon these strengths in order to deliver this level of excellence in both REO and property preservation operations.

Jen joined Safeguard in 1997 and was promoted to director of inspections operations in 2009 and assistant vice president of inspections operations in 2012.

She graduated from Cleveland State University with a degree in business.


AVP, Finance

Jennifer Anspach

Jennifer Anspach is the assistant vice president of finance for Safeguard. She is responsible for the company’s national workforce of approximately 1,000 employees. She manages recruitment strategies, employee relations, training, personnel policies, retention, payroll and benefits programs. Additionally, Jennifer has oversight of the accounts receivable and loss functions formerly within the accounting department.

Jennifer joined the company in April 2009 as a manager of accounting and finance and a year later was promoted to director. She was named AVP of human capital in 2014. Prior to joining Safeguard, she held several management positions at OfficeMax and InkStop in both operations and finance.

Jennifer is a graduate of Youngstown State University. She was named a Crain’s Cleveland Business Archer Award finalist for HR Executive of the Year in 2017.


AVP, Application Architecture

Rick Moran

Rick Moran is the assistant vice president of application architecture for Safeguard. Rick is responsible for evolving the Safeguard IT systems. He leads the design of Safeguard’s enterprise application architecture. This includes Safeguard’s real-time integration with other systems, vendors and clients; the future upgrade roadmap for systems; and standards designed to meet availability, security, performance and goals.

Rick has been with Safeguard since 2011. During that time, he has led the system upgrades necessary to support Safeguard’s growth. In addition, Rick’s team has designed and implemented several innovative systems.

Prior to joining Safeguard, Rick was director of enterprise architecture at Revol Wireless, a privately held CDMA Wireless provider in Ohio and Indiana, and operated his own consulting firm providing services to the manufacturing, telecommunications, and energy sectors.


AVP, Technology Infrastructure and Cloud Services

Steve Machovina

Steve Machovina is the assistant vice president of technology infrastructure and cloud services for Safeguard. He is responsible for the overall management and design of Safeguard’s hybrid cloud infrastructure. He manages all technology engineering staff who support data centers, telecommunications, network, servers, storage, service monitoring, and disaster recovery.

Steve joined Safeguard in November 2013 as director of information technology operations.

Prior to joining Safeguard, Steve was vice president of information technology at Revol Wireless, a privately held wireless provider in Ohio and Indiana. He also held management positions with Northcoast PCS and Corecomm Communications, and spent nine years as a Coast Guard officer and pilot.

Steve holds a BBA in management information systems from Kent State University in Ohio and an MBA from Wayne State University in Michigan.


Assistant Vice president of Application Development

Steve Goberish

Steve Goberish, is the assistant vice president of application development for Safeguard. He is responsible for the maintenance and evolution of Safeguard’s vendor systems ensuring high-availability, security and scalability while advancing the vendor products’ capabilities and enhancing the vendor experience.

Prior to joining Safeguard, Steve was a senior technical architect and development manager at First American Title Insurance, a publicly held title insurance provider based in southern California, in addition to managing and developing applications in multiple sectors from insurance to VOIP.

Steve has a bachelor’s degree from Kent State University in Ohio.