Page 261 – Safeguard Properties

George Mehok Advocates Safeguard Technology

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

In the June edition of HW Focus, Safeguard’s George Mehok, chief information officer, talks about the INSPI mobile application saving time and promoting quality in an article titled The Most Important Asset.

The Most Important Asset
A raft of new technologies strips days off property preservation work, transforming turnaround times, say field service practitioners

Some have labeled it a gimmick, others weird. Then there are those who claim it verges on evil over perceived privacy issues.

But for players in the field services industry focused on property preservation and getting the job done, the advent of Google Glass may prove quite the opposite.

Speed and cost are at the core of the field service sector, says Eric Miller, executive director at the National Association of Mortgage Field Services. “The old mantra,” he calls it.

Pre- and post-foreclosure inspections. Grass cutting. Snow removal. Trash outs. Window boardings. Swimming pool maintenance. Security checks.

In just a matter of years, the intelligence gleaned on these jobs has gone from notepad and pen plus days between information
delivery, to quasi-real-time video and reporting to mortgage servicers.

So the promise of further reduced delivery times, cost savings and upticks in accuracy holds wide appeal. Google Glass in all its space-agey computerized spectacle glory would represent another rung climbed on the technological ladder, transferring data from smartphones, tablets and computers directly into the view-field of wearers.

Already, smartphone and tablet technology has revolutionized the sector, spawning a slew of advanced applications that firms have been putting to use in a bid to boost efficiency. It’s an advance propelled by the creep of advanced mobile networks and the falling cost of devices like smartphones. Almost everyone owns one, notes Chad Mosley, the senior vice president of business development at Mortgage Contracting Services, a Plano, Texas-based field services firm in the business for 25 years.

There is a lot at stake. Statistics indicate foreclosure inventory is on the downward spiral, but there were 1.69 million as of April, according to Lender Processing Services. The total noncurrent inventory has fallen below 5 million for the first time since 2008, LPS said.

Though it’s not due out until next year, NAMFS, the industry advocacy group which counts servicers, field services companies, contractors and inspectors among its members, has requested a prototype of the Google technology. Miller says a “universal portal for delivery of work and results would allow individual companies to retain their identities while reducing errors and allow the focus to be on those properties that are truly exceptions.”

“Google Glass is similar to the smartphone ability — a single device solution — but with the power to connect to end systems at the site, possibly saving data processing lag, as well as the benefit of flagging issues upon submittal which could prevent return trips,” the former LPS Field Services assistant vice president continues.

For now, processing lags and return trips to properties are among the glitches firms hope to weed out as they put in to practice their new mobile applications.

A LOOK AT WHAT’S NEW
In February, Ohio-based Safeguard Properties — the industry’s largest property preservationist — rolled out its INSPI mobile application to “improve the efficiency and speed of field and insurance loss property inspections.”

In April, Field Asset Services of Austin, Texas, unveiled its Flexible Mobile Survey, described as an advance on the company’s FAStrack Mobile, a photo management app.

MCS, meanwhile, recently launched two new mobile technology solutions for use in the field: a free proprietary system called MCS Mobility and a third-party-provided app. Mosley sees the tech advances as key to improving delivery time and accuracy.

“Now you have vendors in the field using devices that can inspect a property, upload the results, take photos, QC (quality control) it right there on the spot and electronically transfer that information right into our proprietary system, which then feeds into our client system,” he said.

“So we’re able to get information more timely and we’re able to get more real-time information,” Mosley said. “And then it also improves the accuracy when a vendor or inspector is at a property and is taking photos. They can use some of the geotracking to verify the right location; they can QC their photos right there and upload the results right there.”

In the case of Safeguard, the INSPI technology could strip days out of a reporting process that involves thousands of occupancy inspections per day, says George Mehok, the company’s chief information officer.

On a typical day, they might receive a work order from a servicer to verify occupancy, which would then be sent on to an inspector through the firm’s “intelligent routing system.” In the process, the order is prioritized in order of urgency, with routing instructions carried out by mapping technology.

“But what’s really innovative about this is when they’re completing the occupancy inspection — and in this case let’s say last month it was occupied but this month it’s now vacant — the system will, on the device, indicate if there is a discrepancy between the last inspection and the current inspection to ensure that the inspector is at the right home,” says Mehok.

“In the past, there wasn’t any real-time interaction between the systems, its information and the inspector. Remember, they would have had a white pad and a camera,” he said. “So if, for example, the last inspector reported the property was occupied and it had a two-car garage and this time they report it vacant with a one-car garage, the system will automatically, on the mobile device say, ‘Are you sure this is a one-car garage? Because last month it was a two-car garage.’ The only reason that mobile device can do that is because it is fully integrated.”

QUALITY CONTROL
Compared to the methods employed before, the new technology boils down to an on-the-spot quality check. That’s huge, Mehok explains. “Let’s take that a step further. In the old scenario, (the vendor) would have taken the pictures and sent the results that night to Safeguard. We would have then reviewed that order because our systems will auto-recognize that there was a two-car garage. So there is no problem. We have internal quality control.”

In the final analysis, Mehok says, the time savings amounts to three days: the first lost because the inspector has attended the wrong property, the second due to the fact another visit is required to verify the correct house and the third is the timelag between re-submission of results and Safeguard’s review. Safeguard plans to extend its tech options with the release of a maintenance version called Vendor Web Mobile, now in beta mode.

Meanwhile, FAS lauds the customization potential of its new technology. This allows the firm, explained FAS President and CEO Dale McPherson in a recent press release about the system, to “move beyond generic work orders and drill down to specific details about a property that needs to be verified.”

Clients, he says, “receive additional value because of the efficiency at which we’re able to operate — days instead of weeks — from creation to deployment of the surveys, including delivery of customized reports in whatever format a client prefers.”

NAMFS’ Miller points out an industry-wide challenge — one that the likes of Safeguard and MCS say they are already surmounting — centers on technology that works across operating system platforms “for Android, Apple, Windows and Blackberry.”

A CHALLENGING FUTURE?
But what if the falling foreclosure number statistics are prophetic? Does an industry that proliferated in tandem with the foreclosure crisis now contracts, with some players seeking alternative revenue streams? The executives are coy.

“Regardless of what happens with delinquency and default trends, pre-foreclosure and post-foreclosure services will continue to be critical processes and FAS will be there providing next-generation solutions with our core real estate service products,” said Paul Carlson, FAS chief operating officer, in a statement.

Mosley, of MCS, is more direct, painting a different picture of the foreclosure climate. “We haven’t seen [a foreclosure wane] in regards to any type of trends in the amount of work. We’re actually seeing quite the opposite. There’s actually more inspections and more property preservation types of services that are being done right now.”

Nonetheless, at Safeguard, Mehok says the same technology advances could be put to use in other “inspection-oriented lines of business.”

At NAMFS, Miller — who speaks for practitioners both large and small — sees diversification as an opportunity to those only plowing the field services furrow. “There is also the reality that some may leave the industry due to a variety of reasons,” he says, pointing to pricing, volume of work and the lure of previous employment or industries as possible exit points. Other opportunities might include consumer loan inspection, construction draw inspections, direct work with banks and brokers, code compliance abatement or even work as simple as handyman services, Miller suggests. “These are some that NAMFS has presented to our membership through our annual conference or webinars,” he adds.

But, as things stand, thanks to tech advances, there are also new dynamics at work, says Miller. He highlights accuracy and auditability.

“By accuracy, I do not mean to imply old data was not accurate, just that there is now an ability to take this to a higher level, for example with geo-coding and video. Geo-coding can provide an increased level of certainty that the correct property was inspected or preserved,” he explains. “Video can more accurately demonstrate the condition of the property and surrounding areas. As far as auditability goes, with the increased scrutiny and regulation, this is the new reality of mortgage field services.”

Still, Miller says new technologies pose challenges, something that would likely steer minds should a device like Google Glass take off in the industry. “Technology does have limitations,” he concedes, “one of which is time to market, and this is magnified in the current state since regulations are so fluid. This challenge has resulted in greater communication within the industry to ensure proper time for implementation of these changes to the various technology systems.”

To view the aricle in pdf, please click here.

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.

Robert Klein Comments on Long Island Foreclosure Spike

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

On May 10, Long Island Business News published an article titled Foreclosure Spike Coming to LI. In it, Robert Klein, Safeguard’s founder and chairman is quoted commenting on the number of inspections and maintenance work Safeguard performs.

Foreclosure spike coming to LI

Foreclosures are expected to spike on Long Island in coming months as properties protected by moratoriums stemming from Hurricane Sandy storm back into the legal process.

Fannie Mae and Freddie Mac ended a temporary ban on foreclosures in Nassau and Suffolk counties on April 30.

Voluntary foreclosure moratoriums at banks like Wells Fargo followed suit, setting up a coming wave of legal actions against delinquent homeowners.

“There’s going to be more volume coming through,” said Todd Yovino, owner of Hauppauge-based Island Advantage Realty, which helps banks maintain and market foreclosed properties. “What does that look like? It’s going to be considerably more than we’ve seen for the past two years.”

The post-moratorium increases come on top of rising foreclosure activity nationwide as the legal system gets back to work after the $25 billion robo-signing settlement signed last April.

“When we look at the data in Nassau and Suffolk we’re seeing increases in foreclosure activity,” said Daren Blomquist, vice president at Irvine, Calif.-based RealtyTrac, an online real estate data tracker. “In March, we saw some of the biggest increases we’ve seen in foreclosure activity. Most of the increase was in the new foreclosure filings, properties starting the foreclosure process.”

Foreclosure activity in Nassau increased 5 percent last April after 13 months of declines and rose in 10 of the 12 last months, culminating in a 132 percent surge in March to 794 foreclosure notices, up from 328 a year earlier.

The numbers increased slowly in Suffolk over the past year, before a 303 percent spike in March to 1,222 properties in foreclosure from 303 a year ago.

“We expected this increase, ever since the robo-signing scandal came to light,” Blomquist said. “Maybe the reason we’re seeing the bigger increase now is there were a lot of loans the lenders couldn’t foreclose on. They had to make sure they crossed their t’s and dotted there i’s.”

More than 25,000 loans are in various stages of foreclosure on Long Island and more than 17,000 local homeowners are 90 or more days delinquent, according to New York State Attorney General Eric Schneiderman.

“The number of foreclosures across Long Island is troubling, but this isn’t just a matter of numbers,” Schneiderman said. “Each foreclosure represents a devastating loss for families and communities.”

As announced this week, the state plans to sue Bank of America and Wells Fargo for not processing refinancing requests promptly, one reason for the increasing foreclosures.

Wells Fargo, meanwhile, said it’s committed to complying with the national mortgage settlement and has helped more than 70,000 homeowners through that program.

“It’s unfortunate that the New York attorney general has chosen this route rather than engage in a constructive dialogue through the established dispute resolution process,” said Jim Hines, a Wells Fargo Home Mortgage spokesman.

About 1.5 million U.S. properties were in the foreclosure process or repossessed by the bank in the first quarter of 2013, up 9 percent from a year ago, according to RealtyTrac.

Bank of America holds 11 percent of mortgages in foreclosure, while Wells Fargo has 10 percent and Chase has 7 percent, according to RealtyTrac.

“The timing is great, because the real estate market is healthy,” Yovino said. “It’s a good time for the banks to be able to shed some for this legacy debt from their books.”

The increase in foreclosure activity does offer a silver lining for firms involved in the process, including landscapers, home contractors and inspection companies.

Ohio-based Safeguard Properties, which monitors and maintains properties for banks, does 1.8 million inspections a month involving properties on which mortgages are 45 days behind.

“Even before the crisis, we were performing 700,000 to 800,000 inspections a month,” said Safeguard Chairman Robert Klein. “Now that doubled.”

Klein said banks are hiring his firm not only to inspect, but to hire contractors to mow lawns and perform other maintenance.

“We’re maintaining more vacant properties, which is a good thing,” Klein said. “Otherwise, these would be sitting there, becoming bigger problems.”

Properties heading from limbo to sale are also creating work for contractors as the banks seek to increase curb appeal for buyers.

“Everyone’s going to get a little bit busier, from the guy who installs the carpet to the engineers and attorneys,” Yovino said. “From bathrooms and kitchens to siding and roofing.”

While buyers may snap up properties at discounts, a healthier real estate market means deals won’t be as good as they were a few years ago.

“There’s always opportunity,” Yovino said. “I think the bigger opportunity has passed. There’s a lot more consumer confidence right now. As a result, people are paying greater numbers.”

And those eager to scoop up a foreclosure property may find that the deal isn’t always as attractive as it appears.

“There’s a lot of risk involved,” Yovino said. “Unless you really know what you’re doing, there’s a lot of liability. You need to know if the property’s occupied. Are you willing to sit a year for an eviction? That’s how long it takes.”

To view the online article, please click here.

Compliance Connections Surpasses 20,000 Violations

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

Compliance Connections^®Surpasses 20,000 Violations

Safeguard Properties announced that its Compliance Connections^® division has surpassed 20,000 code violations processed and 850 municipalities served, exceeding 300 percent growth in the last 15 months.

The top five states with registered municipalities using Compliance Connections^® include: Florida with 113, Illinois with 86, California with 77, Texas with 76, and Ohio with 62. Notable municipalities utilizing the service include Phoenix, AZ; Orange County, CA; Miami-Dade County, FL; Atlanta, GA; Las Vegas, NV; Cleveland, OH; and Plano, TX.

Compliance Connections^® offers a Web-based portal allowing mortgage loan servicers and municipalities to communicate immediately when code issues arise. When notices are posted, they are delivered electronically, eliminating the delays associated with mailed notices, saving time and money, and preserving the value and condition of real estate assets and the communities in which they are located.

About Compliance Connections^®Compliance Connections^® is a Safeguard Properties technology solution that provides fulfillment services in the areas of code violation and compliance. The Compliance Connections^® platform provides loan servicers, code enforcement officers, and others involved in the code violation process a secure workflow management system to track and resolve code violations. The central, Web-based location offers code enforcement officers the ability to communicate, upload documents, manage tasks, and review and update the status of code violations. Web site: www.complianceconnections.com or www.safeguardproperties.com.

On May 20, National Mortgage News published:
Compliance Connections Surpasses 20,000 Violations

Steve Meyer Discusses Hurricane Sandy Impact and Lessons Learned from Katrina

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

In its Spring 2013 edition, USFN Report published an article authored by Steve Meyer, Safeguard’s assistant vice president of high risk and hazard claims, titled Hurricane Sandy Impact Lessons Learned from Hurricane Katrina.

Hurricane Sandy Impact Lessons Learned from Hurricane Katrina
By Steve Meyer

When Hurricane Sandy hit the Northeast Coast in October 2012, the mortgage servicing industry felt a sense of déjà vu. Less than eight years before Sandy, the U.S. was starting to rebuild from Hurricane Katrina, arguably one of the most devastating natural disasters in the country’s recent history. In 2005, Hurricane Katrina left $81 billion in damage, 1.2 million evacuees, and 1,833 storm-related deaths according to The Weather Channel. Early estimates show that Sandy caused 147 deaths and $50 billion in damage to 650,000 properties.

Because the majority of properties damaged and destroyed by Hurricane Sandy have mortgage loans, the mortgage industry has a vested interest in assisting homeowners to mitigate losses. Applying lessons learned from Hurricane Katrina can help both homeowners and mortgage servicers understand and address insurance and property preservation issues.

Insurance-related Issues
A big challenge servicers face after major disasters like Hurricanes Katrina and Sandy is that most homeowners do not fully understand their insurance policies and often find that they have insufficient policies to cover the damage. They also fall prey to unscrupulous contractors and adjusters.

Flood vs. Wind-driven Rain Damage — Determining the cause of the damage establishes whether it is covered under a standard homeowner’s policy or under a separate flood policy. Many homeowners do not have flood insurance policies because they are not required unless properties are located near a flood plain. Flood damage typically is not covered under a standard policy, although wind-driven rain damage is covered, and establishing the cause of the damage is usually dependent on the discretion of adjusters.
Adjuster and contractor fraud — Predatory practices by insurance adjusters and contractors were so prevalent after Hurricane Katrina that it spawned legislation requiring adjusters to become licensed or obtain temporary catastrophe licenses that are valid for up to 180 days. Even with such legislation, vulnerable homeowners fall prey to unscrupulous insurance adjusters and repair contractors who receive insurance money and then fail to complete repairs or assessments or perform shoddy work. The risk for mortgage servicers is that the value and condition of the property may be negatively impacted as a result.
Limited coverage — Insurance policies may not fully cover the costs of repairs and clean-up after a storm or hurricane. For example, a policy might cover the cost to remove a downed tree that has fallen onto a home, but it may not cover the cost to remove sticks and limbs from the yard.
State rulings — After major storms, states make declarations to categorize the event. This is important to servicers because specific insurance policies must be used to cover damage costs depending on what type of storm has been declared. For example, if the storm is declared a hurricane, the amount of money homeowners must pay out of pocket for deductibles differs from what they would pay using a standard homeowner’s policy. Hurricane insurance policies carry “percentage deductibles.” When a homeowner purchases a hurricane policy, the carrier determines the deductible based on a percentage of the total appraised value of the home. As an example, a homeowner with a home appraised at $250,000 and a policy that carries a five percent deductible for hurricane damage would have to pay $12,500 out of pocket.
Servicers omitted from claim checks — On current loans, insurance carriers issue two-party checks that need to be endorsed by both the servicer and the borrower. In an effort to expedite payment for minor damage or cost-of-living expenses, some insurance companies set up temporary locations and write checks directly to the homeowners. As an additional insured on the policy, the carrier has an obligation to include the servicer on any payment for damage to the dwelling regardless of the amount.
Recoverable depreciation — Understanding the policy requirements related to recoverable depreciation is important to ensure full reimbursement. Policies will only make full reimbursement for damage once repairs are completed. Until then, reimbursements are made based on the depreciated value of the property. The typical time frame for recoverable depreciation is 180 days after the date of loss. Insurers may extend the timeline to 24 months after major storms or disasters.
Property Preservation Issues
Major storms and disasters present new challenges for servicers and their field service partners in assessing damage and making repairs. Some of those challenges include increased materials costs, accessibility of properties, mitigating further damage, and identifying vacancies.
Increased cost of materials — Increased demand and short supplies of building materials often cause a spike in costs after major storms. As a result, the cost-estimating software that the industry uses to determine the cost of repairs may not be accurate under the circumstances. It is important to review current material costs and pursue supplemental claims with the insurance carriers when necessary.
Property accessibility — Inspectors often have difficulty reaching properties in severely impacted areas, and shortages of fuel may limit the number of properties they can inspect. Inspection delays can hinder damage reporting, property securing, as well as emergency work needed to mitigate the damage.
Mitigating further damage — Servicers must take action to mitigate existing damage to prevent further damage. It is a requirement of investors and insurance companies. If servicers fail to properly mitigate losses, investors will not reimburse for the additional damage, and insurance companies will not reimburse to remediate resulting mold damage.
Identifying vacancies — After a severe storm, it is difficult for field servicers’ inspectors to determine vacancy when homeowners are forced to evacuate. Reporting a property as vacant when it is not can result in the denial of a homeowner’s insurance claims if force-placed coverage has been initiated by the servicer. Further, when borrowers evacuate, field service companies must decide whether to secure a property as well as determine other preservation measures that must be taken to protect the servicer’s collateral interests.

Solutions
The aftermath of a storm is a chaotic time for borrowers whose homes have been damaged or destroyed. Servicers must take immediate action to communicate to homeowners and offer assistance through the rebuilding process.

Utilizing field service contractors, servicers can reach out to borrowers and provide contact information when borrowers have questions or need help to address issues. Servicers also should train customer service personnel to assure that borrowers receive accurate and timely responses and information regarding insurance coverage and other storm-related updates.

Additionally, servicers must emphasize to borrowers the importance of documenting all property damage before filing an insurance claim. Homeowners should take multiple photos and videos that are time-stamped. Some homeowners have used the daily newspaper to verify dates in their damage photos and videos.

Often homeowners do not know what to do or where to turn for help after a major storm event. By identifying key issues from previous storms and applying the lessons learned, servicers can better manage issues, reduce potential losses, and offer much-needed relief to homeowners impacted by the devastation.

To view the online article, please click here.

Safeguard Performed Work on Vacant Properties in Sussex County

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

On April 23, The Sparta Independent published an article titled Vacant Homes Linger in Sussex. In it, Safeguard is mentioned as one of the property management companies taking care of Sussex properties.

Vacant homes linger in Sussex

Hundreds of empty homes, potential boons and threats to neighborhoods

SUSSEX COUNTY — Rain-soaked newspapers wait at the door. There’s a mini forest growing from the gutters. Lichens are attacking the lawn furniture. The doorbell is dead.

Five years after the financial collapse that seized the housing market in the U.S., hundreds of vacant properties remain scattered across Sussex County, the lingering byproducts of the mortgage crisis.

As spring brings the start of the 2013 construction season, there are tepid hopes this year the housing market turn itself around. Standing in its way, however, are vacant properties like the ones in Newton, Sparta and Byram, which present distinct problems — and unusual opportunities — for homeowners.

Newton resident John Ragsdale has lived in his whitewashed Victorian home on Halstead St. for nearly 20 years.

Over the last three years a handful of homes just a few hundred feet away from his have stood empty as their former owners faced foreclosure.

“That one’s been empty for about a year and a half,” Ragsdale said of the house at 42 Halstead St..

Ragsdale is one of hundreds of homeowners living near foreclosed and vacant properties who worry about the decline of their neighborhoods.

“Now you can see that it’s an eyesore. It’s getting decrepit. It’s not being maintained physically, so I am worried about that and what it does for the property values here. Is this thing going to sit another year, another two years? There is one right behind me that’s been sitting vacant for two-and-a-half years.”

Empty and unknown

The house at 42 Halstead is currently owned by a bank, which has contracted with an independent property management company to keep the home in line with local codes.

“The banks won’t put much money into them other than paying taxes and other minor maintenance, like cutting grass, so they don’t get fined by the town,” Ragsdale said.

In the month of February, the property management firm Safeguard performed approximately 800 work orders on properties in just two zip codes, Newton’s 07860 and Sparta’s 07871.

Though that number reflects only the work orders and not individual properties, Safeguard was the only property management service that reported data. Other major companies, including CoreLogic, and LPS Field Services refused to give numbers on the properties they maintain.

The Sparta Independent found several homes in both Sparta and Newton that carried labels from those two companies by crossing-checking public data on homes with zero water usage. There were also many that had no indication any property manager was looking after them.

In Byram Township, vacant properties have prompted dozens of calls to the town from neighbors complaining about overgrowth, vermin infestations and other problems.

“We do the best we can to get the banks to maintain them,” said Byram Zoning Officer John Gutwerk. “They pretty much haven’t changed. We may have even more that have gone empty over the winter that we just don’t know about yet.” Gutwerk said that the two to four years it takes to foreclose on a property means that there are many more vacant homes than the township’s records reflect. “Complaints always go up this time of year. In another month, when things start to really get green we’ll see a lot of the same problems we had last year,” he said.

Tipping the scales

Economists estimate that vacant, delinquent and foreclosed homes hold leverage over the prices of surrounding properties.

A 2011 study conducted by the Federal Reserve Bank of Cleveland found that vacant or delinquent homes have a negative impact between 1.5 and 3 percent for each distressed property within 500 feet of standard sale.

Although that may seem like threat to a neighborhood, it also represents an opportunity for a purchasers looking to quickly regain value in a home.

But the longer the property stays vacant, the more unlikely it is for a buyer to pick it up.

“Properties that have been vacant for longer than two years are much more likely to have severe problems, such as cracked floors or walls, broken or boarded up windows, and a roof or foundation in disrepair, that make these properties harder to rehabilitate and less appealing to prospective buyers,” said Federal Reserve Governor Elizabeth A. Duke.

Still, Ragsdale is hopeful.

“It’s a nice town. It’s affordable, and there’s never been a better time to buy a house,” he said.

The Sussex County Association of Realtors declined to comment on this story.

To view the online article, please click here.

Safeguard Expands Bringing Over 200 Jobs to Richardson, TX

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

On April 4, Safeguard Properties announced the opening of its new operation in Richardson, Texas, bringing more than 200 jobs to the community. The announcement was published by several media sources.

Please follow the links to read the full articles from Housingwire, Dallas Business Journal, DSNews, and National Mortgage News, respectively:

Safeguard Properties Brings 200 Jobs to Dallas Area

Safeguard Properties Expands, Brings 200 Jobs into Richardson

Safeguard Properties Brings More than 200 Jobs to Dallas Area

Field Service Provider Opens Texas Office

Following is a link to the official press release from Safeguard:

Safeguard Properties Expands Operations And Brings More Than 200 Jobs to Richardson, Texas

Robert Klein Counters on Foreclosure Timeline

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

In the March issue of DSNews, a Point-Counterpoint article was published, titled Only Time Will Tell. In it, Safeguard’s Robert Klein, founder and chairman, counters to Thomas J. Fritzlen, Jr., president of Martin, Leigh, Laws & Fritzlen, P.C., regarding the foreclosure timeline.

Only Time Will Tell
Foreclosure timelines vary from state to state leaving mixed results in the world of completed foreclosures. Are judicial timelines hurting the industry or helping it?

Foreclosure is a fear that every homeowner hopes to avoid; however, during the economic collapse it became an all too apparent reality for many Americans, but not in the same manner as one would expect because the laws in certain states differ from the laws in other states. Judicial states prolong the foreclosure timelines in certain states allowing some homeowners to stay in their homes for longer periods of time and in other states forcing others out immediately, putting more vacant homes on the market and changing the face of entire communities. How are these laws impacting the recovery? Thomas J. Fritzlen and Robert Klein weigh in.

According to Thomas J. Fritzlen
There are differing perspectives on both sides of this issue. For example, FHFA has recently criticized states for increasing the time in which it takes to foreclose. The Center for American Progress, while recognizing some benefits of timely foreclosures has complained that any potential plans to charge higher guarantee fees in states where laws have contributed to extended foreclosure timelines would unfairly punish borrowers. From the practitioner’s point of view, there is little doubt that in some instances, state laws have added to the costs and contributed to unnecessary delays. Higher costs and longer delays hurt the industry and aggravate an already mind-numbing gauntlet of requirements through which lenders and servicers must run daily. However, there may be a “silver lining.” To the extent such laws can help restore lenders’ credibility and to the extent such laws can help restore public confidence in the foreclosure process, the industry will be strengthened.

The economic crisis revealed isolated as well as systemic problems and abuses, including robo-signing, inadequate, defective (or worse) documentation, questionable or non-existent proof of ownership, and difficulties in providing the courts with adequate evidentiary support. No doubt these problems were aggravated by the high volume of defaulted loans.

The states’ (and courts’) reaction to these problems was swift and reflected an unprecedented erosion of credibility and confidence, which our industry has long enjoyed. Gone are the days of routinely accepting the averments of lenders and counsel as true–even the most routine processes and documents are now subject to higher standards of proof and skeptical scrutiny. In the past, lenders could count on courts generally accepting, without questioning, the accuracy and veracity of their representations. However, in a few short years, such deference has vanished. Public confidence in our industry is at an all-time low. As a result, the industry has been required by various states’ laws to go to extremes (some would say) in order to process even routine foreclosure cases.

This is the new order. Where is the “silver lining”? These may present additional hurdles and burdens, but they also present us with an opportunity to reestablish credibility and confidence. As we work through the foreclosure inventory, the new rules will encourage lenders and servicers to re-establish credibility one case at a time.

This will demonstrate to borrowers, the courts, and the public that our industry is willing to meet the challenges we face–that we will provide accurate affidavits and documentation and complete and unassailable assignments, and that we have exhausted all alternatives prior to foreclosure. While the mistrust may be ebbing, it will take time to restore complete confidence. With daily, consistent attention to detail, we will begin to restore confidence in the mortgage industry.

Another benefit of these more stringent requirements may be to enhance the perception that the process is fair. This may deter the endless legal challenges, which only add to delays.

We need to embrace these new laws and welcome the opportunity that they present to restore public confidence and to re-balance the equities in the process. If we do so, we will realize their “silver lining.”

According to Robert Klein
The discussion surrounding foreclosure timelines in judicial states is far-reaching and multi-faceted because each state operates as its own jurisdiction with absolute authority over its individual procedures and governing protocols. What can be effectively argued is that increased foreclosure timelines leave properties vacant for longer periods of time, which has a lasting impact on local communities–and, in particular, on the neighbors of the vacated properties that sit empty and dark, inviting blight, crime, and vandalism.

I think everyone agrees that when a property is vacant, everybody–from the family next door to local businesses across town–suffers from the vulnerabilities that abandoned properties inherently bring. An unoccupied property in general, especially if it is boarded with plywood, will drive down the property values of the surrounding neighbors, which, in turn, has an obvious and damaging impact on the local community as a whole. It’s a natural progression for this type of scenario to play out on any one of our streets, in any corner of our country.

There’s no argument against the realization that vacated properties are not helping anybody, but the effects of elongated timelines are certainly more pronounced in judicial than non-judicial states. Texas, a non-judicial state, does not have an extended foreclosure timeline; after three missed payments foreclosure is initiated on the home. Illinois, a judicial state, recently passed a law that says if a property is vacant it will fast-track it to foreclosure instead of the foreclosure process taking two years on average. In New York, the foreclosure dockets are backlogged for three years, leaving vacant properties vulnerable to vandalism, crime, and deterioration no matter how well they are being maintained by mortgage servicers and their field service partners.

There is hope for an acceptable resolution to this issue and I think the solution is already happening. While foreclosure timelines are, by and large, decided by state law, it’s a complicated matter, with more and more states taking a step back to examine their own processes because too many times homes are left unattended and unoccupied as homeowners cut ties and set out to find alternative housing solutions.

The conversation surrounding these very diverse and distinct laws is a necessary discussion because, in almost every case, there are neighbors–good, respectable, creditworthy neighbors–who are making their payments on time each and every month and living within their means in the homes that they’ve purchased. Yet these neighbors are made vulnerable because of the unfortunate circumstances that may have fallen on the neighbor who lost their home. It is a loss for everyone when a property sits vacant for a long time–the servicer, the investor, the home’s next buyer, the neighbors, the community, and the municipality.

A swift resolution that makes it possible for the next buyer to see the potential within the empty, lifeless rooms of a vacant foreclosed home . . . that is the fuel that can ignite the spark that we once called the American Dream.

Thomas J. Fritzlen, Jr., is the president of Martin, Leigh, Laws & Fritzlen, P.C., a leading Midwest litigation and creditors’ rights firm serving Missouri, Kansas, and southern Illinois. He serves on the inaugural Advisory Board to the Legal League 100, is a managing member of the Default Attorney Group (“DAG”), and frequently speaks at educational training for servicers and lenders, and at national industry events such as the MBA and USFN. Fritzlen has been recognized as a Missouri-Kansas “Super Lawyer” for each of the last five years, and has 25 years of trial and appellate experience in general civil and complex litigation, including numerous bench and jury cases in state and federal courts.

Robert Klein is founder and chairman of Safeguard Properties. Since founding Safeguard in 1990, he has grown it into the largest mortgage field service company in the country, providing services in all 50 states, the Virgin Islands, and Puerto Rico. He has been an industry advocate to advance best practices and has led key initiatives to build relationships between government officials and the mortgage industry and to find workable solutions to improve neighborhoods and communities. He currently serves as chair of the National Vacant Properties Registration Committee of the Mortgage Bankers Association.

To view the article in PDF., please click here.

Michael Greenbaum and Travis Anderson Quoted in Diverse Opportunities Article

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

In the March edition of DSNews Industry Insight, Safeguard’s Michael Greenbaum, VP of operations, and Travis Anderson, director of vendor management, are quoted in an article titled Capturing Today’s Diverse Opportunities.

Capturing Today’s Diverse Opportunities

Enterprising women- and minorityled groups are transforming markets across the country in their efforts to advance recovery.

An old proverb says: “It’s an ill wind that blows no one any good.” This could certainly be true of the housing crisis of the past several years. Recognizing opportunities hidden in the fallout, women’s groups and minority organizations operating in the default servicing industry have developed and delivered a plethora of creative solutions. From helping consumers regain homeownership to unearthing untapped business avenues, these intrepid alliances are infusing new energy into the default industry.

To view the article in its entirety, please click here.

Kellie Chambers Opines about Managing Transition

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

On April 23, HousingWire published an article titled Property Preservationists Talk about Managing Transition. In it, Safeguard’s Kellie Chambers, AVP of property preservation is quoted.

Property preservationists talk about managing transition

Changes in property preservations happen often, causing firms in the asset management space to continuously overhaul their operations.

At the SourceMedia Mortgage Servicing Conference, panelists discuss how to keep up with the changes in the session “Pressue Points: Managing Transitions in Property Preservations from the Top Down.”

“The auditor is driving much of the change, but it really needs to be driven by the business owner. It is really important that during the action-planning phase that the business owner has as much say as the auditor,” said Kellie Chambers, assistant vice president of property preservation at Safeguard Properties.

Rob Hicks, first vice president, industry relations for LPS Field Services, expanded saying, “Take the time to sit down with the auditors to help them truly understand the business.” It will take extra time, but it will be more efficient in the long run.

To view the online article, please click here.

George Mehok Discusses Data Mining to Solve Business Puzzles

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

In its April edition, Mortgage Banking published an article authored by George Mehok, Safeguard’s chief information officer, titled Solving Business Puzzles with Data Mining.

Solving Business Puzzles with Data Mining
By George Mehok

Every piece in a puzzle is an important part of the big picture. Each piece fits in a certain way, and puzzle solvers must apply strategic thinking to make it all come together. Depending on the size and number of pieces, some may start with the edges and work their way toward the middle. Others identify similar pieces and begin working on specific sections of the puzzle. Each person chooses the best method to analyze and solve the puzzle.

The same applies to mining data to support business planning and decision making. Each piece of data that a company collects is a puzzle piece that fits into the big picture. Developing a strategic approach to put it all together is the challenge.

National field service companies working on behalf of the mortgage industry collect billions of points of data in the process of inspecting and maintaining millions of properties in neighborhoods, cities and states across the country.

We collect detailed information about the condition of each vacant and abandoned property, instances of damages and vandalism, and the numbers of vacancies, defaults and foreclosures we encounter in each ZIP code.

Our database tracks the numbers of work orders each vendor completes and each employee processes, and the photos that accompany each order. We track outcomes related to specific procedures, training and other activities. If the information is in our system, we can track it.

And just as the tiny pieces in a jigsaw puzzle form a picture, each piece of data builds a picture that can help improve operational performance and the quality of vendor performance, and support the decision-making process of mortgage servicers regarding their property portfolios.

Improving field performance

Over the past two years, Safeguard Properties has made a significant investment to enhance our data-mining capabilities to create new and improved analytics and reporting mechanisms to improve our own performance and share critical data with our clients. Our goal is to create internal business intelligence strategies and use analytics to predict trends to proactively improve performance and help clients make evidence-based business decisions.

Safeguard’s enterprise data warehouse collects information from all of our systems to provide a timely and accurate view of the work we perform in the field and help us make important resourcing decisions. For example, by evaluating contractor performance and property condition trends, we can more accurately forecast resource levels and types of vendors we will need in particular markets.

Analytics also help Safeguard build stronger relationships with our vendors and a more effective vendor workforce. Scorecards allow us to track and measure the performance of each contractor so that we can address issues such as timeliness, accuracy and other quality indicators.

Safeguard also has developed “dashboards”–easy-to-read charts and graphs–so that our vendor-management team can easily view reporting results to evaluate the performance of individual vendors. When deficiencies are identified, field quality-control representatives work with vendors to improve their performance and outcomes.

Supporting client needs and requirements

Field service companies must maintain scorecards to measure their performance against client service-level agreements. By building analytics to track and monitor performance levels in near real time, we can proactively identify issues and take more immediate corrective actions to minimize property risks and ensure that service levels remain at or above our clients’ standards and requirements.

By evolving analytic capabilities to proactively identify trends, we can also help our clients make more informed decisions about their portfolios of defaulted and foreclosed properties, as well as their property disposition strategies.

For example, we can evaluate crime, vandalism, severe weather and property damage trends in particular areas to help clients predict maintenance costs associated with these issues.

Clients can utilize the data we provide to determine optimal property investments to maximize the return on their real estate-owned (REO) portfolios or to make decisions to donate properties to land banks, community development corporations or other agencies.

We can work with clients to determine alternative securing procedures, changes in inspection frequency or other services that may be needed to comply with investor guidelines.

Planning for the future

Safeguard relies heavily on operational reporting, metrics, analytics and dashboards to make business decisions to improve our financial and operational performance as well. We make information available in our internal systems so that each department and manager can pull the data they need to evaluate employee performance, cost information, profit margins and other results, and take measures to either improve deficiencies or share successes and best practices with other departments.

As more of Safeguard’s field inspectors utilize mobile devices, we are in the process of comparing results of those who use such devices and those who do not to determine whether we find a difference in the quality of work. This will help us evolve our processes to help our inspectors improve the efficiency and quality of their work.

Another strategic initiative for Safeguard is the use of Geographic information systems (GIS) tools and techniques. GIS captures locations to ensure that vendors identify and visit the correct properties. The data, enabled by the use of mobile devices, also collects location-based data that will help us assign work orders more efficiently.

By taking advantage of the information treasures in our data mines, companies like Safeguard can fit billions of pieces of information together to solve their most challenging business puzzles and those of their clients. We haven’t completely solved the puzzle, but we are laying the groundwork to continuously improve our own performance, the performance of our vendors, and help clients make better and more-informed business decisions as well.

George Mehok is chief information officer of Valley View, Ohio-based Safeguard Properties, the nation’s largest mortgage field service company. He can be reached at george.mehok@s.safeguardproperties.com.

To view the article in PDF, please click here.