Page 260 – Safeguard Properties

Safeguard Partners with Habitat and BBC to Revitalize Colfax Road

Posted on September 13, 2018October 3, 2018 by Safeguard

On July 7, several media sources reported on the humanitarian efforts of Habitat for Humanity, Safeguard Properties and Burten, Bell, Carr Development Corporation. Following is a story from newsnet5.com titled Habitat for Humanity’s Community Revitalization on Colfax Road.

Habitat for Humanity’s community revitalization on Colfax Road

CLEVELAND – More than 100 volunteers from around the country came together on Sunday, July 7 for an unprecedented day of community revitalization on Colfax Road in Cleveland.

Greater Cleveland Habitat for Humanity partnered with Safeguard Properties and Burten, Bell, Carr Development Corporation to rehab vacant homes for new homeowners, help with exterior home repairs for existing residents, remove yard debris and make landscaping improvements.

“We really have an opportunity to make a noticeable difference in a short period of time on the street,” said Greater Cleveland Habitat for Humanity executive director John Habat.

Resident Ernest Smith had new steps installed on his back porch.

“They call it the forgotten triangle but it seems to be that we’re not totally forgotten because somebody remembered this area and their doing what they can to to revitalize it,” said Smith.

Safeguard Properties is the largest mortgage field services company in the U.S., headquartered in Valley View, Ohio. Safeguard employs approximately 1,700 people, in addition to a network of thousands of vendors nationally.

“Doing work on a property where people live and making lives better for them is absolutely, it fits right in with what we do,” said Safeguard Properties founder and chairman Robert Klein.

Resident Sharon Owens was born in her Colfax Road home. She raised her children and grandchildren there.

Owens loved to garden but had to have part of her right leg amputated in February due to an infection.

“It’s been a struggle ever since because I’ve always been a person that’s real active in the neighborhood and got up and did things. I can’t do it now,” said Sharon.

On Sunday, volunteers planted flowers and mulch in Sharon’s yard. She was grateful for the generosity of others.

“I’ve been here all my life and I really feel happy here,” said Owens.

Of the homes on Colfax Road currently owned by Habitat, two are available for occupancy now. Families wishing to become home owners through Habitat are encouraged to submit a home ownership application to GCHFH. Information may be found on www.clevelandhabitat.org

To view the online story, please click here.

Please click here for Habitat for Humanity’s official press release prior to the event.

Additional media coverage:
A Beautification Blitz on Cleveland’s East Side
Habitat for Humanity Hits Colfax Road
Day of Service for Habitat for Humanity

About Safeguard
Safeguard Properties is the largest mortgage field services company in the U.S. Founded in 1990 by Robert Klein and based in Valley View, Ohio, the company inspects and maintains defaulted and foreclosed properties for mortgage servicers, lenders, and other financial institutions. Safeguard employs approximately 1,700 people, in addition to a network of thousands of contractors nationally. Website: www.safeguardproperties.com.

Safeguard Mobile App Produces Nearly-Immediate Results

Posted on September 13, 2018October 29, 2018 by Safeguard

On July 7, Crain’s Cleveland Business published an article titled Property Inspections are Safe, and Instant, with Safeguard’s New Mobile App.

Property inspections are safe, and instant, with Safeguard’s new mobile app
Safeguard produces mobile application that files results almost immediately

In the business of property preservation, a single-day lag between a property inspection and a report of the findings can leave an abandoned home vulnerable to vandalism, animals, insects, and frozen — and burst — pipes.

Using technology it says it has spent millions of dollars to develop, Safeguard Properties in Valley View has ramped up its real-time reporting of property conditions.

More than 70% of the more than 1 million inspections Safeguard contractors perform in any given month now are reported within minutes of the inspections via a mobile app the company has developed; that’s up from roughly 5% of reports submitted via the app this time last year, said George Mehok, Safeguard’s chief information officer.

Safeguard employs contractors across the county to inspect and maintain defaulted and foreclosed properties for lenders, mortgage servicers and other financial institutions.

Introduced after two years of development in late 2011 and modified since then, the mobile app replaces for those contractors who use it the filing of reports on a laptop in the field, or by desktop computer at the end of the day. Instead, they are tapping the touch screen of their smart phones to file reports as they go.

The app also eliminates the need to carry a camera and later connect it to a computer, because it prompts contractors to take images with their smart phones and attaches the images to their reports.

The app, which is compatible with Apple and Android operating systems, requests information real-time as a contractor reports that certain conditions at a property exist. As a result, it helps eliminate the frequency with which contractors might file a report only to realize they need to return to a property because they neglected to inspect or photograph something.

“We have a mobile work force, so this is perfect,” Mr. Mehok said. “A lot of the business is timing.”

The app means inspection results, in most cases, reach clients 24 hours faster than they might have before, Mr. Mehok said, which should translate into better- preserved properties. And it has proven compelling enough to one mortgage servicer that, in the last month, the company started paying to use the app. (A Safeguard spokeswoman wouldn’t identify the company.)

Unlike third-party mobile apps with similar functions, Safeguard’s app is tailored specifically to the property preservation business — some are focused on insurance, for example — and integrates with Safeguard’s internal systems, Mr. Mehok said.

“I’m not aware of another field service company that has its own,” he said.

The move to mobile

Neither is Eric S. Miller.

The use of mobile apps is growing in the property preservation business, but Safeguard — in developing its own app in-house — is on the “front edge” of the trend, said Mr. Miller, executive director of the National Association of Mortgage Field Services Inc., based in Stow.

Most companies, Mr. Miller noted, are using mobile apps developed by third-party providers, or they’re encouraging contractors in the field to sign into their websites using their smart phones.

“I think the ability to get the data in quicker, more real-time … those timeframes will continue to be pressured,” Mr. Miller said. “Better work, faster work, cheaper work, those are your three options. You’re going to see a concerted effort by the industry and by a lot of people to get some type of simplistic web-based service, or you’re going to see them go mobile.”

The nonprofit association itself is developing a mobile app that its member companies, which include Safeguard, can use to stay aware of problem properties, Mr. Miller said.

Safeguard does not yet ask its contractors, which include mom-and-pop businesses and regional companies, to use its mobile app, but the time will come, a spokeswoman said. At present, not every contractor is jumping aboard because many are accustomed to the way they’ve done business, said Jennifer Jozity, assistant vice president of inspections operations.

But those that do use the app should find it to be a more profitable, efficient way of doing business, Mr. Mehok said, and that should ring even truer as the company puts GPS capabilities to work for contractors.

Safeguard’s information technology team is working to set up proximity routing using Google Maps, wherein a contractor would be sent on assignments in an order that’s most efficient to avoid zigzagging around town. It also in recent months started leveraging GPS information, specifically longitude and latitude, so it can better identify when a contractor actually is reporting from — and inspecting — the wrong property.

Tapping the data mine

Safeguard’s IT team has rolled out more than the mobile app.

Using a data warehouse it implemented over the last 12 months, Safeguard is mining its data so it can share with clients when an area has more incidences of a certain type, such as mold or vandalism, and also what the probability of properties becoming vacant is in certain neighborhoods.

“We collect a lot of information that we then give back to our clients,” Mr. Mehok said, citing the 300 million data points collected about properties in any given month.

The data mining also will help Safeguard identify regions where the company needs to improve the quality of its work, executives say. Quality “heat maps” show the company where there may be need for training, corrective action or hiring more contractors, perhaps because deadlines aren’t being met or return visits to properties are more frequent.

The company also rolled out enhancements last month to its order processing system to automate work flow and improve management of its orders. The enhanced system will report to Safeguard’s vice president of operations how long employees spend processing orders, something Safeguard executives say is not intended to be used punitively, but to identify the more productive employees who could train others, Mr. Mehok said.

“Greater efficiencies will allow us to remain a market leader, better serve existing clients and attract new clients, recruit strong and talented employees, and better protect properties in our care,” Safeguard CEO Alan Jaffa said.

To view the online article, please click here.

Safeguard Collaborates with Others to Clean-Up Slavic Village

Posted on September 13, 2018October 3, 2018 by Safeguard

On July 17, Safeguard collaborated with Forest City Enterprises, RIK Enterprises, Neighborhood Progress Inc., Slavic Village Development and the City of Cleveland to help clean up a Slavic Village neighborhood. Newsnet5.com posted an article titled Neighborhood Cleanup in Cleveland’s Slavic Village Continues Despite Heat, detailing the event.

Neighborhood cleanup in Cleveland’s Slavic Village continues despite heat

CLEVELAND – Despite the extreme heat, dozens of volunteers turned out on Wednesday to help clean up a Slavic Village neighborhood.

The effort was arranged by Slavic Village Recovery, LLC, a collaboration between Forest City Enterprises, Safeguard Properties, RIK Enterprises, Neighborhood Progress Inc., Slavic Village Development and the city of Cleveland.

Volunteers from the different entities focused their energy on three-square blocks along Fleet Avenue, from East 53rd Street through East 55th Street.

Clean-up crews began working at 9 a.m. and sweltered through the day picking up trash, landscaping, cutting lawns and tending to boarded-up properties in the area.

Representatives from Slavic Village Recovery told NewsChannel5 they are taking a “holistic approach” to dealing with the issues in the neighborhood – and this cleanup is just the beginning.

“There’s about 2,300 homes and we’re looking at impacting roughly 400 of those houses over the next couple of years,” said project director Jeff Raig. “We’re looking at transforming an entire neighborhood, not just on a house-by-house basis.”

To view the online article, please click here.

Robert Klein Talks Law and Order

Posted on September 13, 2018October 4, 2018 by Safeguard

In the July edition of HousingWire, Robert Klein, founder and chairman of Safeguard Properties authored an article titled Law and Order.

Law and order
Ohio city attracts plaudits for tackling foreclosure blight, but major challenge remains

In many ways, Youngstown, Ohio, serves as a comeback model for similar cities around the country that have lost jobs and population since the industrial decline that began in the late 1970s.

Thanks to forward-thinking leaders who have cultivated a supportive business environment, Youngstown has become one of the most improved economies in the country, according to an analysis by the Brookings Institution. A growing energy market has sparked a manufacturing resurgence. A vibrant technology scene is attracting startup companies, warranting mention by President Barack Obama in his State of the Union address earlier this year. And Youngstown’s downtown is springing back to life as an entertainment destination.

Unfortunately, like other cities across the country, Youngstown has also suffered in the aftermath of the housing crisis, with vacant and abandoned properties straining city resources, hurting neighborhoods and driving out residents. It’s understandable that city leaders would want to take action to preserve neighborhoods, protect the safety of its citizens and help maintain the momentum of economic recovery.

However, their decision to enact what is being viewed as one of the most onerous vacant property ordinances as a solution to the problem may actually do more harm than good. The ordinance has a number of possible ramifications, with three apparent major drawbacks in particular some deem worthy of rumination.

Good Guys Pay, Bad Guys Don’t
The first concerns the fact the ordinance requires the owner of a vacant property to post a cash bond of not less than $10,000 to assure the continued maintenance of the property until it either moves through the foreclosure process and is sold to a new owner, or is demolished. The definition of an owner has been broadened to include the person in title, the entity that holds the mortgage and even authorized agents and vendors of the mortgage company who have direct or indirect control of a property.

Here is the sad irony: Irresponsible owners who let their properties deteriorate in the first place aren’t likely to comply with the ordinance. Code enforcement officers and other officials will waste precious time chasing ghosts, with nothing to show for it.

On the other hand, the vast majority of mortgage companies and their agents who already secure and maintain properties abandoned by homeowners could be penalized by the ordinance and forced to pay, even though their properties aren’t causing problems.

Lienholder Conflict
Second, until mortgage companies take legal title to a property, their rights are limited — even when homeowners abandon properties. Prior to an actual foreclosure sale, banks can only perform services to prevent code violations and protect the collateral value of the property in the absence of an occupant. In other words, the requirements of the Youngstown ordinance will most likely conflict with laws limiting a bank’s rights prior to foreclosure.

The expanded definition of a homeowner in the Youngstown ordinance actually sets up the city for potentially expensive and protracted legal actions. In fact, two years ago, the city of Chicago considered similar language in their ordinance, defining lienholders as homeowners prior to foreclosure. Ultimately, they removed the language after listening to the concerns of the mortgage industry in this regard.

It Doesn’t Fix the Problem
Third and finally, the worst enemy of a vacant property is time, and the Youngstown ordinance seems to do nothing to address this. If the city of Youngstown really wants to protect the condition of vacant properties and make banks responsible, the answer might be to help them take possession more quickly. That requires a change in state law to accelerate vacant properties through foreclosure.

In Ohio, the foreclosure process can take two years or longer, whether the property is occupied or abandoned. Even with the billions of dollars the mortgage industry spends annually across the country to inspect and maintain vacant properties, these homes will deteriorate as they await foreclosure. Many will be vandalized, losing value, becoming neighborhood nuisances and negatively impacting surrounding properties.

When a property is deemed vacant and abandoned, accelerating foreclosure would allow banks to obtain title while the property is still in good condition so that it can be sold and reoccupied more quickly.

For some, accelerated foreclosure is a far better alternative to vacant property ordinances. It can reduce the burden on city code enforcement officials and first responders to address nuisance issues. It can protect the condition and value of vacant properties, especially those in fragile neighborhoods. And, perhaps most importantly, it can help maintain viable housing for families, especially first-time home buyers and lower income people.

Youngstown’s leaders have demonstrated a progressive attitude toward rejuvenating their city. There is a strong argument that says they should continue to lead the way to protect homes and neighborhoods across Ohio by promoting legislation designed to accelerate the foreclosure process for vacant and abandoned properties.

Key Concepts

Mortgage companies and their agents who already secure and maintain abandoned properties could be penalized by a new Youngstown, Ohio, ordinance and forced to pay.
The requirements of the Youngstown ordinance will most likely conflict with laws limiting a bank’s rights prior to foreclosure.
If the city really wants to protect the condition of vacant properties and make banks responsible, the answer might be to help them take possession more quickly.

To view the article PDF, please click here.

Robert Klein Shares Views on Youngstown Foreclosure-Bond Law

Posted on September 13, 2018October 4, 2018 by Safeguard

On July 21, Vindy.com published an article titled Youngstown has Collected $480K, Awaits More with New Foreclosure-Bond Law. In it, Robert Klein, founder and chairman of Safeguard Properties shares his own views on the topic.

Youngstown has collected $480K, awaits more with new foreclosure-bond law

YOUNGSTOWN
A city law, created about four months ago, requiring those filing foreclosures on vacant houses to post a $10,000 cash bond is proving to be an effective way to make sure owners, mostly banks, are more accountable, the city’s neighborhood improvement coordinator says.

The city has collected the bonds from 48 property owners for a total of $480,000, and is working to acquire the $10,000 bonds from 18 other property owners, said Maureen O’Neil, neighborhood improvement coordinator.

If a bank maintains the property, it would receive all but $200 of the $10,000 back once the house is sold. The $200 covers administration fees.

If the house falls into disrepair, the city can use the money for required maintenance or demolition.

Youngstown is only the third city in the country — Springfield, Mass., and Canton are the others — with a foreclosure-bond law, and Canton doesn’t enforce its ordinance, O’Neil said.

Since 2004, about 5,200 houses Youngstown went into foreclosure.

The focus in Youngstown is on properties foreclosed since the beginning of the year, O’Neil said, because they are typically in better condition than older foreclosed structures that already have been stripped of vinyl siding, copper piping and almost everything else.

O’Neil’s office is focused on the 159 houses in foreclosure in the city since January.

It will take time to pursue all of them, and there are additional foreclosures in the city that will make that list grow, O’Neil said.

“It’s a new program and we’re still developing it and seeing what works,” she said. “It’s another tool for code enforcement along with rental property registration, vacant property registration, the property maintenance appeals board and prosecutor hearings. Our focus is compliance and to bring properties up to code.”

However, not everyone supports the foreclosure bonds.

Robert Klein, founder of Safeguard Properties, a Valley View, Ohio, business that is the nation’s largest mortgage field service company, called Youngstown’s law “overblown” and “punitive.”

Safeguard manages about half of the properties on the city’s list of those that have paid the $10,000 cash bonds. The company’s clients include major banks such as JPMorgan Chase & Co., PNC Bank and Bank of America.

Those banks “obviously don’t like it,” Klein said. “One of the issues we’re having is the communities are not talking to the industry. They’re talking at the industry.”

The bond “only puts another wall between the industry and cities,” he said.

Having a $10,000 bond won’t help the situation because irresponsible property owners, he said, aren’t likely to comply while those who secure and maintain properties are forced to pay even though their homes aren’t causing problems.

Klein also suggests the city work toward helping to change state law that would allow banks to take possession of houses through foreclosure faster. That way, banks can obtain title while the property is in good condition and then sell it quicker, he said.

Among the 48 properties in which the owner has paid a $10,000 bond is 555 St. Louis Ave. on the South Side.

The grass is thick in the front of the property, and small trees are growing in the house’s gutters. While this house isn’t in good shape, it’s far from the worst on the street.

Ruth Alli, whose house — which has security cameras on the front porch — is only a vacant lot away from 555 St. Louis, said the house has been vacant for two or three years.

A company came one time to cut the grass, but did only a portion of it, left and have never come back, she said.

“It’s a good neighborhood,” Alli said. “I like it here, but that house [at 555] needs attention, and some of the other houses need to come down.”

In Cornersburg, 3240 and 3432 N. Wendover Circle are both on the $10,000 bond foreclosure list.

Augie and Barbara Angel have lived across the street from 3432 North Wendover since 1979.

Though the house at 3432 is in good shape, the grass is overgrown.

“You still have a responsibility to take care of the home,” Augie said. “There’s a lack of consideration for your neighbors by letting it look bad. We love this neighborhood and we want to stay. We’re trying to maintain our property and to have others not care is terrible

To view the online article, please click here.

Robert Klein Sets Record Straight on Housing Demolition and Community Stabilization

Posted on September 13, 2018October 4, 2018 by Safeguard

On July 15, The Plain Dealer published a blog written by Robert Klein, founder and chairman of Safeguard Properties, titled Setting the Record Straight on Housing Demolition and How it can Stabilize a Community: Letter to the Editor.

Setting the record straight on housing demolition and how it can stabilize a community: letter to the editor

Recovering from the national housing crisis has been and continues to be a long, multistage process. The housing market will play a critical role in the broader economic recovery of our nation.

After implementing new banking regulations and budget cutbacks, lawmakers have turned their attention to repairing the fabric of America: our cities, neighborhoods and small towns. States around the country are making strides toward legislation for fast-tracking foreclosures, and some governments have even instituted statewide vacant property registration guidelines.

On the surface, this subject may seem a lot simpler than other issues Americans have dealt with in the wake of the housing crisis, and while rebuilding America’s communities may not be as complex as crafting the Dodd-Frank bill, it is much more than bricks, mortar and 2×4’s. There is a lack of understanding of the most effective way to implement the revitalization process. I believe it requires a holistic approach with several simultaneous steps, and demolition is a critical starting point.

While many may consider demolition as a last resort, it is in fact a vital step in a comprehensive approach when rehabbing a community. It is impossible to cultivate development and garner interest from prospective home owners, as well as investors, if homes that cannot be saved are still standing. When these properties remain, they become a health and safety hazard for residents and neighboring homes. If the proper steps are not taken to remove a nuisance property, then rehabbing efforts are futile.

There are also several benefits associated with demolition, including stabilizing property values and eliminating older homes that contain dangerous substances such asbestos. Also, many of the materials from demolished properties can be recycled. Cities are now repurposing the lots from demolished homes into green space, parks and playgrounds to cultivate community development. More important, demolition paves the way for salvageable homes to be rehabilitated, allowing for the subsequent steps in the development process. In the aftermath of demolition, we can create these community pulse points, build new houses and neighboring homeowners can preserve their property values and see their neighborhood or small town come back to life.

Unfortunately, there are often challenges in getting the demolition process underway, as the permit process can be both costly and time consuming. This proves that greater education is necessary on the need for demolition and its associated benefits. Dollars from both the Neighborhood Stabilization Program and the Hardest Hit Fund have been dedicated to demolition efforts. Despite this designation, in many states across the country there has been a struggle for communities to get their hands on these funds because of the stigma associated with demolition. If the proper funds are not distributed for demolition efforts, then dollars spent to keep people in their homes and to rehabilitate communities are completely undermined.

We need to educate people on what demolition really is. Demolition is not tearing down your grandmother’s home or the house you grew up in. Houses that need to be demolished are no longer homes at all. They are properties that endanger your community, perpetuate blight and prevent revitalization efforts.

Robert Klein, Cleveland

Klein is the founder and chairman of Safeguard Properties.

To view the online blog, please click here.

Alan Jaffa’s Successes with Company’s Growth

Posted on September 13, 2018October 3, 2018 by Safeguard

How Alan Jaffa took Safeguard Properties from a Start-up to an Industry Leader

Alan Jaffa has been CEO at Safeguard Properties Management, LLC, since 2010. Safeguard Properties is the largest privately held mortgage field services company in the country.

Jaffa learned the business by moving through the ranks of Safeguard, experiencing first-hand virtually every department in the company. He joined the company in 1995 when it was a small start-up with few employees. As a result of a great work ethic and innovation, Jaffa moved up quickly, becoming COO in 2002.

By the time he became CEO in 2010, Safeguard had grown its employee base significantly. Under his leadership, Safeguard completed the acquisition of Bank of America’s field service department. Jaffa took this bold step to protect the company’s leadership position and expand its footprint into the south and west regions of the country where large concentrations of the company’s clients are located.

Under Jaffa’s watch the company has almost doubled its revenue, and he has helped fully integrate the acquired entity with Safeguard within six months after the acquisition.

Aside from a focus on growth, Jaffa ensures that he is a visible leader at Safeguard. He spends at least one day per week at each Safeguard location, maintains an open door policy and hosts monthly “Java with Jaffa” sessions around the company to hear ideas from employees at all levels.

Jaffa also meets weekly with his executive team, monthly with the entire senior management team of directors, and hosts quarterly two-day off-site meetings with the executive and management teams to encourage collaboration, address challenges together, build on best practices and identify new initiatives to maintain a competitive advantage.

These efforts help Safeguard deliver greater efficiencies, track and improve quality, recruit and retain diverse and qualified employees and vendors, forecast trends, and anticipate client needs for new and varied services.

To read this article on sbonline.com, click here.

Robert Klein Among Expert Panelists for Code Compliance at REX

Posted on September 13, 2018October 4, 2018 by Safeguard

On June 3, HousingWire.com published an article titled Saving Property Values in the Wake of Foreclosure. In it, Robert Klein, Safeguard’s founder and chairman is listed as a panelist at the recent Real Estate Expo.

Saving property values in the wake of foreclosure

Asset management firms are in a constant race to preserve local home values through the effective upkeep of vacant properties.

At HousingWire’s Real Estate Expo (REX Annual) on Monday, experts spoke on the subject of “Help Us Save Our Neighborhoods.” The idea behind the discussion was to visit code compliance issues, revealing effective ways to ensure property values are not weighed down by troubled and vacant properties.

Members of the panel included: Robert Klein, chairman of Safeguard Properties; Jim Taylor, senior vice president with Wells FargoHome Mortgage; Kelvin Beene with the City of Fort Worth; Jeannie Fantasia, vice president of SecureView; and Eric Miller, executive director with the National Association of Mortgage Field Services.

Taylor said, “If you look at the REOs we sold last year, on average the customer has not made a payment in 16 months. If that is the case, that customer is really in distress.”

If we cannot help the borrower, we try to find ways to help them move on while attempting to get the house back on the market, Taylor explained. But to do so, the house has to be in the best shape possible.

“We cannot stop the situation but there are ways that we can improve the communication. One of the things that has been a constant is the stigma that is tied to a boarded property,” added Jeannie Fantasia with SecureView.

To stay abreast of how property preservation firms are coming along in preserving home values, Taylor with Safeguard announced the creation of a grading system that will score houses to show how they have progressed from REO to the day the home is sold.

REO homes take longer to get back on the market, so in the process, it is imperative that communication about the home’s status is clear and up-to-date, the panelists suggested.

To view the online article, please click here.

Michael Halpern Proposes “Top-Down, Bottom-Up” Approach to Community Outreach

Posted on September 13, 2018October 4, 2018 by Safeguard

In its June edition, HW Focus published an article authored by Safeguard’s Michael Halpern, director of community initiatives, titled Community Outreach; Proposing a New Approach to Code Enforcement, City Outreach.

Community outreach
Proposing a new approach to code enforcement, city outreach

The statistics don’t lie: Communities across the country continue to struggle with vacant and abandoned properties in their neighborhoods. According to RealtyTrac figures, one in every 391 housing units in the U.S. is in foreclosure. To ensure these properties are maintained properly, local officials increasingly have proposed and enacted legislation regarding code enforcement.

Mortgage servicers utilize their field service partners to inspect and maintain vacant properties in their portfolios. They rely on field servicers to not only provide preservation services, but also to maintain open lines of communication, provide outreach and create a partnership with code enforcement to protect properties in their neighborhoods — outreach that many national field service companies are doing day-to-day. But despite these ongoing efforts, more needs to be done.

A new, broader approach involving multiple levels of government would be more effective in creating this partnership with legislators and code enforcement officials.

A “top-down, bottom-up” approach is the most effective way in building relationships with all levels of government. This includes participation at numerous statewide municipal league conferences to engage mayors, council members, cabinet heads and other decision makers.

In the search for greater transparency, this approach introduces cities to the best practices in the industry with regard to property preservation, and the positive financial and community impact these efforts provide.

By engaging multiple levels of government, the mortgage industry can collaborate with officials on proposed legislation related to the housing industry and offer cost-effective tools that can help eliminate code violations and the blight vacant properties can cause.

Open communication is critical to ensuring guidelines are met and new regulations are being followed in the current era of compliance and regulatory oversight. This new approach will provide the best way to manage property issues through a direct line of open and frequent communication.

To do this, several field service companies have created teams dedicated to building relationships with city officials and code enforcement. These teams not only participate in municipal league conferences, but also host seminars and webinars to advance education. They also work toward mutually beneficial solutions on behalf of the mortgage servicing industry.

VACANT PROPERTY REGISTRIES
An example of the solutions field service company outreach teams can provide with the top-down, bottom-up approach lies in city frustrations over the steady increase of vacant and abandoned properties in their neighborhoods. In the past few years, this frustration gave rise to the enactment of more city-based Vacant Property Registration ordinances across the country. The field service outreach teams have worked to educate city officials and offer suggestions on the language used in proposed legislation to ensure consistency with industry best practices for property preservation.

To take the top-down, bottom-up solution even further, field service outreach teams need to build relationships and approach state government officials to encourage statewide vacant property ordinances. The concept of VPRs is beneficial for both municipalities and the mortgage servicing industry in that they help reduce blight and protect neighborhoods. However, a lack of uniformity makes it difficult for servicers to comply with hundreds of ordinances and their unique requirements.

The statewide approach provides a more standardized process in addressing code violations by connecting code enforcement officials and servicers more quickly and on a broader scale.

Serving as the eyes and ears for the mortgage servicing industry, national field service companies have the opportunity to make an impact in every community across the country. But to effectively preserve properties, they need to build relationships and garner support from municipalities and code enforcement officials. The top-down, bottom-up approach engages all levels of local government in building a partnership in the fight against blight.

Michael Halpern is the director of community initiative for Safeguard Properties, the largest mortgage field service company in the U.S.

To view the article in pdf, please click here.

Kellie Chambers Shares Tips for Adapting to Regulatory Changes

Posted on September 13, 2018October 4, 2018 by Safeguard

In the June 2013 edition of Servicing Management, Safeguard’s Kellie Chambers, assistant vice president of property preservation, authored an article titled Tips For Adapting to a Changing Regulatory Environment.

Tips For Adapting to a Changing Regulatory Environment
Servicers can – and should – rely on their field services partners to stay on top of regulatory changes that affect vacant properties.

Comedian George Carlin once joked: I put a dollar in one of those change machines. Nothing changed.

Without change, businesses, industries and government agencies quickly become irrelevant to those they were created to serve – just as a dollar bill becomes irrelevant to someone who needs quarters for a parking meter.

But adapting to change can be a challenging and stressful process. This is certainly true for the mortgage servicing industry as it responds to ever-changing investor guidelines and government regulations designed to strengthen and protect the nation’s housing market.

When guideline and regulatory changes affect policies and procedures related to property preservation for vacant defaulted and foreclosed properties, the mortgage servicing industry should view their partners in the field as resources and allies to respond effectively.

Step One: What does it mean?

Whether they are guidelines to help reduce bid volumes, new property condition and timeline requirements for conveying properties post-foreclosure or changes to improve transparency around loan status, when guidelines and regulations are introduced, it is important to start by understanding what they mean and how they will affect existing processes and systems. The deeper the subject knowledge and the more diverse the perspectives to interpret the rules, the more comprehensive the evaluation will be.

Representatives from the mortgage servicing and field service sectors – from multiple organizations and various levels within those organizations – should come together to discuss the details of the new regulations, share their interpretations, reach consensus where they can and identify points that require clarification. This kind of connection can be achieved through conference calls or other forums.

One designated representative can then work on behalf of the industry to review the group’s interpretations and make inquiries to the government-sponsored enterprise or agency issuing the new requirements. This collective approach is more efficient for servicers, investors and government agencies alike in helping to ensure consistency and accuracy in implementing new guidelines and regulations across the industry.

Step Two: Roll it out

Once the industry understands the new requirements, the best course is to implement them – even if there are initial concerns.

In the roll-out phase, mortgage servicers should rely on their field service companies to track and monitor results to provide objective data to determine whether guideline and regulatory changes are working or where modifications may be needed.

Mortgage servicers also should look to their field service partners to make recommendations for and assist with updating systems and procedures to accommodate changes related to property preservation services.

Invoicing systems may need to change to reflect new pricing thresholds for bids. Manual processes may need to be automated to comply with new reporting requirements. System changes will need to be tested and verified.

Everyone involved in the new processes will need to be trained – from the mortgage servicer’s side to the field service provider’s billing staff – on all aspects of the new guidelines and regulations. Field servicers can and should take the lead to develop this training for servicers.

Also, field servicers must ensure that the vendors that perform services at properties are properly trained on the new guidelines and regulations related to repairing damages, bidding for repairs, assessing property condition and other requirements.

Step Three: Analyze and modify

After 30 or 60 days, evidence will begin to emerge to show whether new guidelines and recommendations are meeting their goals.

For example, when the U.S. Department of Housing and Urban Development issued its Mortgagee Letter 2010-18 guidelines in May 2010, the changes were designed to reduce the time frames to convey properties, reduce bid volumes for repair approvals and improve the condition of properties at conveyance.

The data demonstrated that the goals were achieved to reduce bid volumes and improve the condition of properties at conveyance. With regard to reducing the time frame for conveyance, the industry saw a trade-off. Requirements for higher levels of repairs extended the time to convey, but the result was a higher-quality product. This trade-off was viewed as worthwhile.

In another example, Fannie Mae’s new property preservation guidelines, Property Maintenance and Management: Property Preservation Matrix and Reference Guide, issued in early 2013 were designed to reduce bid volumes and provide greater transparency with regard to loan status.

An example of a previously requested practice that is now mandatory is Fannie Mae’s HomeTracker system. HomeTracker is an online tool that manages requests and bids to provide services that exceed certain allowables. It permits servicers to search property information, submit bids, receive responses and track the history of over-allowable bids.

This new technology requires that the servicer provide more information – such as loan and inspection history and date of default – to allow Fannie Mae to make more informed decisions. This resulted in a more efficient bid process and better communication between Fannie Mae and servicers.

The new guidelines also required servicers to secure properties within seven days. However, this change was inconsistent with the requirements of those servicers whose policy is to provide more notice to borrowers, resulting in higher numbers of denials and a need to respond manually to each notice. As a result, servicers are re-evaluating their rules and business practices to accommodate the new Fannie Mae guidelines.

Because mortgage servicing is a constantly changing industry, servicers should rely on their field service partners to guide them through changes in guidelines and regulations. This partnership helps servicers understand how changes will affect their business practices and respond accordingly. By working together, we can respond effectively to ensure that the services we all deliver remain relevant to protecting and sustaining a strong housing market. s

Kellie Chambers is the assistant vice president of property preservation for mortgage field services company Safeguard Properties. She can be reached at kellie.chambers@s.safeguardproperties.com.

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