Safeguard Properties

Fannie Mae: Plywood Unacceptable for Pre-Foreclosure Properties

Posted on by Safeguard

Safeguard in the News
November 4, 2016

The progress that clear boarding has made over the last few years when it comes to replacing plywood as the go-to method for securing vacant homes has been steadily picking up steam. Now, that progress appears to have kicked into overdrive.

Jake Williamson, Vice President of Real Estate Fulfillment at Fannie Mae announced at the National Property Preservation Conference (NPPC) in Baltimore, Maryland, a new allowable from Fannie Mae that promotes the use of clear boarding on pre-foreclosure properties.

Fannie Mae has been using polycarbonate clear boarding to secure vacant homes since early 2014 and as of this summer, it had been installed in about 4,000 Fannie Mae properties. Fannie Mae started using clear boarding in four states originally (Illinois, Florida, Ohio, and Michigan).

The new allowable announced by Fannie Mae at the NPPC finds the use of plywood unacceptable when securing vacant properties. Now all vacant properties owned by Fannie Mae will be required to be secured by an alternative to plywood, whether in pre- or post-foreclosure state, or REO starting on November 9. There will be a 90-day adoption period for servicers and vendors to apply the new rule going forward, according to Fannie Mae.

Five Star Institute president and CEO Ed Delgado was at the conference moderating a panel on the state of the housing industry and commented upon hearing the news. “This is a major step forward for the cause of curbing urban blight across communities,” said Delgado. “The application of plywood to a property is a tell-tale sign that the home is vacant and advertises it as a potential haven for criminal activity. Removing plywood from the equation while advancing clear boarding is a game changer.”

The use of clear boarding is expected to greatly reduce the problems that often result from using plywood to board up windows on vacant properties, such as community blight, lower property values, vandalism, squatters, and violent crime.

Despite the higher upfront cost, the rationale is that servicers will actually save on costs in the long term because of the product’s ability maintain the value of the property and shorten the disposition process.

“Eighty percent of the issues that the industry has with the conveyance timeline are resolved when the industry moves toward clear boarding,” said Robert Klein, Founder and Chairman of Safeguard Properties and Founder and CEO of Community Blight Solutions. “This move will have a tremendous impact on ensuring that properties return to the market in a more stable and marketable condition.”

Brandon Johnson, CEO of property preservation company GTJ Consulting in Detroit, told DS News in May 2016: “We try to explain that the benefits, in our mind, far outweigh the additional cost, because it’s a long-term solution. You can’t get in, you can’t break through it, and it withstands the elements. It doesn’t disintegrate over time, and it looks much better, because when you drive by, you can’t even tell that the property is boarded up. On a number of levels, we feel it’s a great product, and a definite step forward in the urban fight against blight for communities.”

Source: DS News

The Housing Industry?s Response When Disaster Strikes

Posted on by Safeguard

Safeguard in the News
October 10, 2016

As of Monday morning, Hurricane Matthew was still raging up the East Coast. More than a million homes lost power in Florida as a result of the storm, while several other states experienced massive flooding that resulted in damage to hundreds of homes.

How does the industry respond when a natural disaster causes so much residential property damage?

For starters, there are some preventative steps to be taken.

“Clients can assess not just delinquent portfolios but their currently performing portfolios so they can assess how many properties are in harm’s way,” Safeguard Properties Chief Operating Officer Mike Greenbaum said. “The reason why that’s important is there are some things you can actually do to prevent damage. Some of our clients will actually have us go out and do some hurricane boarding, which means putting plywood or Secureview clearboarding up, to protect the asset. That’s actually on the front end, so you can minimize the damage that’s going to happen to the extent that you can.”

But after the storm has come and gone, there are four steps to take, Greenbaum said.

“Define what areas were affected, overlay how many assets are in the affected area, get an inspector out to the property so you know what was damaged versus what wasn’t damaged, and then work with your clients to have them actually get pre-approvals so that we can start taking steps to fixing the property when we physically visit,” he said. “We’ll take our active inventory and go back to our individual clients, and then say, ‘Client ABC, it looks like you had 1,042 total assets that were in the affected area. Would you like us to place an inspection order so we can visit the properties and give you a detailed report on whether the asset was damaged?’ Many clients say, ‘Yes, absolutely, get out there and let me know what happened.’ Some clients will actually give us delegated authority allowing us to take curative action.”

Steve McCaffrey, President and CEO of MetroCorp Claims, said,” One of the factors that people will be looking at is whether they have power back in their home and whether their house sustained any substantial damage to where it’s even livable. Fortunately so far for this storm, there has been a lot of physical damage, but structurally most of the properties are still intact and they have sustained physical damage but not to the point where the properties are uninhabitable, provided that they have electricity and normal utilities. People want to get back in their homes as soon as possible for a number of reasons. Number one, if they’re not in their properties, they could be vandalized or burglarized. And then they’ll start the process of assessing the damages and determining if they need emergency services.”

It is possible that many of the homes that are damaged could be in default, and many of them could be unoccupied. When that happens, servicers have to assume that they are damaged, McCaffrey said, and they will want to employ inspection teams with property preservation companies to assess the damage.

“At that point, they’ll evaluate it for filing of a hazard claim. They’ll do any kind of immediate remediation to preserve the property and protect it, identify the level of damage through pictures and notes, and turn that back over to the servicer,” McCaffrey said. “A hazard claim company like ours would get involved to evaluate the level of damage, and a claim would be filed with the hazard claim company to process the claim and get those damages paid for under the insurance policy.”

Source: DS News

Property Management Experts Share Insight on QC

Posted on by Safeguard

Safeguard in the News
September 13, 2016

With a normalization of default, the field services sector is under increased scrutiny. The Property Management Lab at the Five Star Conference on Monday discussed how quality control oversight is increasing, and cities and municipalities are becoming increasingly punitive and because of this it is imperative that the property preservation and field services industry, along with its government and servicing partners, engage in open dialogue about the future of the space.

The Lab began with opening remarks from the lab directors, Jason Chapman, Director of Field Services for Fannie Mae, and Jerry Mavellia, CEO of Guardian Asset Management. The event then went into a discussion over pre-foreclosure oversight. Specifically, a panel lead by Todd Pawlinski, VP of Property Preservation for Caliber Home Loans, engaged in dialogue about what distinguishes a zombie property from a property that is vacant and new legislation that impacts the property preservation model. Panelists included Kellie Chambers, AVP Investor Relations for Safeguard Properties, LLC; David Dolan, COO for ZVN Properties; Tracy Hager, Senior Industry Relations Officer for Mortgage Contracting Services; Adrienne Villalobos, First VP of Shared Services for PennyMac; and Jacob Williamson, VP Single-Family Real Estate Fulfillment for Fannie Mae.

The Lab then progressed to the United States Department of Housing and Urban Development Update lead by Ivery Himes, Director Office of Single-Family Asset Management for HUD. After the update, Brad Phillips, National Field Services Manager for Fannie Mae lead a panel discussion on understanding client core values and lessons learned. Phillips along with panelist Timika Cole, SVP Operations Group Manager for US Bank, and James Taylor, SVP of Asset Management and Property Preservation for Wells Fargo, discussed what they need from their vendors, the importance of understanding core values of a client, how to maximize opportunities with them, and lessons learned during their time in the industry.

Following their discussion, Eric Chader, Advisor for HUD, lead a paneled discussion about the changing focus for property preservation. Panelist in this discussion included Darin Decker, VP of Operations for JPMorgan Chase; Robert Klein, Founder & Chairman for Community Blight Solutions; Matt B. Martin, Director of Servicing and Loss Mitigation for HUD; and Ronnie Ory, CEO for Cyprexx Services. The panel went into in-depth conversation about the recent focus on the larger community and the effect pre and post-foreclosure properties have on the area around them and what the industry is doing to show their commitment to the communitites.

The lab finished with a paneled discussion on the best wat to build a successful network. This panel was led by Chapman, and included Brian Mingham, CEO for National Real Estate Solutions; Dave Sunlin, SVP for Mortgage Contracting Services; Shannon Tomasso, Default Director for PHH Mortgage Corporation, and Sam Tucci, VP of Business Operations for U.S. Best Repair Service. The panel focused on the tricks of the trade to build and maintain relationships throughout the property preservation scope and staying ahead of the changing environment for field services.

Source: DS News

Compliance Addressed By Mortgage Industry Experts

Posted on by Safeguard

Safeguard in the News
September 13, 2016

Compliance has been a major topic of interest, and in many cases a topic of concern, in the mortgage industry in the wake of post-crisis Wall Street reform legislation—notably the Dodd-Frank Act, which passed in July 2010.

Mortgage servicers and other stakeholders in the mortgages space are constantly looking to address their ongoing compliance needs. Many industry experts met on Monday afternoon to participate in the Compliance Lab at the 13th Annual Five Star Conference and Expo in Dallas.

The Compliance Lab was directed by Daniel C. Chilton, Managing Attorney, Citigroup, and included such topics as the issues confronting the mortgage industry now and what the big challenges will be in the future, regulatory changes related to default requirements, systemic risk in the financial environment in which the mortgage industry operates, building and maintaining an effective compliance management program in the current regulatory environment, and an update from the Consumer Financial Protection Bureau on the latest mortgage servicing rules. The presentation on the latter topic was made by Laurie Maggiano, Program Manager for Servicing and Secondary Markets, CFPB.

“The last thing I remember reading about from Director (Richard) Cordray was that there is still a lot of room for improvement in mortgage servicing, especially on the technology side,” said Maria Moskver, General Counsel and Enterprise Compliance Officer with LenderLive. “I think they’re going to come and, through these consent orders and settlements, there are going to be more changes that are required. They’re using UDAP (Unfair and Deceptive Practices Act) as a methodology in terms of how to create change. So you’re not systematically imposing fees—you can’t blame it on your technology anymore. Now you’re going to have to go in and QC every single one of them. I think we’re going to get to a point where we’re it’s going to be even more compliance.”

On challenges that servicers have been facing in the last year since the previous Compliance Lab at the Five Star Conference, Bayview Loan Servicing COO Michael Waldron said, “The big ticket item is the amended servicing rules that have now come out and been finalized. They’ll be implemented in the Fall of 2017 and into the early Spring of 2018. What’s interesting about those is, I give credit to the Bureau for soliciting input from the industry and for their willingness to be responsive to some of the concerns that the industry has had since the January 2014 servicing rules came out.”

Waldron stated that many changes now come in the form of adjustments to existing systems and structures rather than large scale overhauls that the industry has seen in the past. These adjustments “oftentimes make things more difficult for the industry, quite frankly, oftentimes it creates clarity and creates efficiencies. It levels the playing field and can be, if done appropriately, can be empowering to the servicers themselves as well as to the consumers that we serve.”

Speakers at the lab, in addition to Waldron, Moskver, Chilton, and Maggiano, included Michael Barone of Mortgage Quality Management & Research, Myrtle Bowles-Scott of Texas Capital Bank, Edmond Buckley of Aspen Grove Solutions, Mitch Davison of MarketReady, Elizabeth DeSilva of Ditech, Roy Diaz of SHD Legal Group, Will Doby of PennyMac, Steven Frie of S&P Global Ratings, Michael Greenbaum of Safeguard Properties, Brian Montgomery of the Collingwood Group, Sasko Popovski of HSBC Bank USA, Katherine Qin of UT-Dallas, and Jim Vaca of Altisource.

Editor’s note: The Five Star Institute is the parent company of DS News and DSNews.com.

Source: DS News

MReport Celebrates Achievements of Women in Housing

Posted on by Safeguard

Safeguard in the News
August 17, 2016

MReport magazine has announced the 55 honorees who will be part of its September 2016 special issue celebrating the accomplishments of women in the mortgage industry.

This year’s honorees are broken down into three categories: “Power Players,” “Leading Ladies,” and “Emerging Leaders.” The 2016 “Power Players” are five mortgage and housing veterans with roles in both the government and private sector. Fifty additional women were selected for MReport’s 2016 “Leading Ladies” and “Emerging Leaders” list.

The honorees were selected from nominations from their peers in the industry, who nominated them based on leadership qualities such as intelligence, drive, and pursuit of innovation.

MReport’s Women in Housing honorees will also be acknowledged at the Women in Homeownership Leadership Forum at the Five Star Conference on Tuesday, September 13, 2016, in Dallas, Texas. The keynote speaker for the Women in Housing Leadership Forum will be Laura Bush, First Lady of the United States (2001-2009). Featured speakers will be Charmaine Brown, Director of the Office of Diversity and Inclusion, Fannie Mae; Amy Bonitatibus, Chief Communications Officer, Mortgage Banking and Credit Card Business, JPMorgan Chase; and Dana Dillard, EVP and Chief Customer Officer, Nationstar Mortgage.

2016 “Power Players”

  • Amy Bonitatibus, Chief Communications Officer, Mortgage Banking and Credit Card Business, JPMorgan Chase
  • Dana Dillard, Chief Customer Officer, Nationstar Mortgage
  • Deborah L. Jenkins, SVP National Head of Multifamily Underwriting & Credit, Freddie Mac
  • Glenda Gabriel, Neighborhood Lending Executive, Bank of America
  • Kimberly Johnson, SVP & Chief Risk Officer, Fannie Mae

2016 “Leading Ladies”

  • Caroline Reaves, CEO, Mortgage Contracting Services
  • Carolyn Thompson, President and Owner, ASONS
  • Charmaine Brown, Director, Diversity and Inclusion, Fannie Mae
  • Cheryl Feltgen, EVP & Chief Risk Officer, Arch MI
  • Debbie Lastoria, VP Business Development, Nationwide Title Clearing
  • Donna DelMonte, SVP Operations, Assurant
  • Hilary B. Provinse, SVP Multifamily Customer Engagement, Fannie Mae
  • Jackie Oliver, SVP Nationstar Mortgage
  • Jill A. Showell, SVP Government and Community Relations, Ocwen Financial Corporation
  • Jill Kravig Burns, Executive Vice President, Mountain West Financial, Inc.
  • JK Huey, SVP Mortgage, Foreclosure and Asset Management, Wells Fargo
  • Jody Collup, VP Marketing, Global DMS
  • Julian Grey, Mortgage Market Leader Data & Analytics, Black Knight Financial Services
  • Katrina Jones, VP, Single Family Business Solutions, Fannie Mae
  • Kellie Chambers, AVP Investor Relations, Safeguard Properties
  • Kelly Chapman, SVP Client Management, Auction.com
  • Kristy Fercho, SVP Customer Delivery Executive,   Fannie Mae
  • Laurie Maggiano, Manager for Servicing and Securitization Markets, CFPB
  • Lisa Sadaoui, President & CEO, First Allegiance
  • Maria V. Moskver, General Counsel & Enterprise Compliance Officer, LenderLive
  • Marianne Sullivan, SVP Single-Family Business Capabilities, Fannie Mae
  • Marion McDougall, EVP Operations, Caliber Home Loans
  • Marnie Ronda Lacue Applegate, SVP Credit Risk/Policy, Pacific Union Financial
  • Meg Burns, Managing Director, The Collingwood Group
  • Melanie Feliciano, Chief Legal Officer, DocMagic
  • Mercedes G. Henricksson, Director of Sales CPM Real Estate, Fannie Mae
  • Michelle DeLeon, Managing Partner, Default Legal Services, Quintairos, Prieto, Wood & Boyer
  • Min Lee Alexander, SVP Real Estate Services, Altisource
  • Nadine Bates, SVP & Treasurer, Fannie Mae
  • Pam Kosanke, Chief Marketing Officer, Renters Warehouse
  • Patricia Raymo, COO Retail, Loandepot
  • Phyllis L. Wright, Ph.D., SVP HR Strategies, VRM Mortgage Services
  • Ramie Word, SVP Performing Acquisitions & Borrower Communication,  Nationstar Mortgage
  • Rebecca Smith, Director, Client Relations, Green River Capital
  • Renee Schultz, SVP Capital Markets, Fannie Mae
  • Rose Silverstein, AVP, Regional Director of New Business and Correspondent Sales Strategy, Radian Guaranty Inc.
  • Sally French Tyler, EVP, First American Title Insurance Company
  • Sally Taylor-Shoff, Scores Vice President, FICO
  • Sandra J. Troutman, Director, Corporate Communications, MERSCORP Holdings
  • Sarah Alexander Goldfrank, SVP & Deputy General Counsel, Fannie Mae
  • Serena Yang, VP, Marketing, Civic Financial Services
  • Sharron P.A. Levine, Director, Office of Minority and Women Inclusion, FHFA
  • Susheel Mantha, CFO, LRES Corporation
  • Tami Bonnell, CEO, EXIT Realty Corp International
  • Terri Hunter, SVP Asset Management and Portfolio Oversight, Chronos Solutions
  • Tujuanna Williams, VP, Chief Diversity & Inclusion Officer, Fannie Mae

2016 Emerging Leaders (35 years old and under)

  • Kelly Brooks, CEO, Property Masters
  • Tonia Conner, AVP, Acquisitions, Nationstar Mortgage
  • Erika Cheyney, AVP, Operations, ZVN Properties
  • Amy Sanchez, EVP, Prescient
  • Tiffany Williams, Director of Default Services, Guardian Asset Management

Source: MReport

Safeguard Properties Innovates New Technology Solutions

Posted on by Safeguard

Safeguard in the News
February 1, 2016

Anticipating future challenges to mitigate risk

The COMPANY

As the largest field services company in the country, Safeguard continues to develop industry-leading technologies that improve the accuracy of property updates and provide best practices for the entire industry.

Safeguard delivers a full spectrum of inspection, maintenance, preservation, property registration, repairs and rehab services on vacant, defaulted and foreclosed properties.safeguard

“What distinguishes Safeguard is our commitment to delivering excellent customer service and performing at the highest levels of quality, timeliness and cost-effectiveness,” said Robert Klein, founder and chairman.

Mortgage field servicers continue to adapt to meet the changing housing climate where the number of distressed properties is declining and the time to foreclose is rising.

Safeguard has been testing the use of video in the field as one of the most promising new technologies for field services companies. Video gives the boots-on-the-ground inspectors and contractors the ability to report damages and receive bid approvals in real time, and provides more detailed evidence of any issues at a property.

“If a picture is worth a thousand words, the possibilities of video in this industry are endless,” said CEO Alan Jaffa.

Regulatory challenges are putting service providers under increased scrutiny and Safeguard stays on top of this by anticipating client needs, employing best practices to minimize risk, and creating comprehensive frameworks to ensure transparent communication from all organizational levels.

“From new technology and the expansion of in-house internal audit and compliance teams, we have been working to proactively and aggressively manage risk, and to ensure the frameworks are in place to maintain regulatory compliance and fully protect the consumer,” Jaffa said.

Now in its 25th year, Safeguard believes its biggest opportunities will come from technology.

By looking at industry problems or situations from a fresh perspective and investing heavily in new technology, Safeguard has been able to optimize mobile location, business intelligence and tracking. This technology means they can identify location accuracy, quality check the data, ensure the right people are at the right property at the right time doing the right work and support compliance requirements.

“By critically looking at the issues currently facing the industry, Safeguard has been able to provide solutions to minimize risks to clients and to properties,” Jaffa said. “Safeguard’s forward-thinking approach allows the company to anticipate industry challenges and changes and develop best practices to meet them head on.”

The EXECUTIVES

Robert Klein, Founder and Chairman

RobertRobert Klein is the founder and chairman of the board for Safeguard. Under Klein’s leadership, Safeguard grew from a handful of employees in 1990 into the largest field services company in the industry, with an extensive network of contractors throughout the United States. Klein assumed the role of chairman in May of 2010.

Klein serves as chair of the National Vacant Properties Registration Committee of the MBA
and he represents not only Safeguard, but the industry as a whole in national associations including MBA, USFN, CMBA and REOMAC. He also is the founder of the National Property Preservation Conference in Washington, D.C. In 2009, Klein received the prestigious Ernst & Young Entrepreneur of the Year Award. He won both in the northeast Ohio region in the category of professional services and asset management firms, and nationally in the servicing category.

Alan Jaffa, CEO

Alan JaffaAlan Jaffa assumed the role of CEO in May 2010. Previously he served as COO. He also serves on the board of advisors for SCG Partners, a middle-market private equity fund focused on diversifying and expanding Safeguard Properties’ business model into complementary markets. Since joining Safeguard in 1995, Jaffa has worked in nearly every department. Under his leadership, Safeguard has doubled in size and, in 2010 and 2011, was recognized as the fastest-growing large company in Northeast Ohio.

Gregory Robinson, CPA, CFO and EVP

GregGregory Robinson directs all financial management activities and also oversees human resources, quality assurance, internal audit and support services at Safeguard. Under his HR leadership, Safeguard has implemented strategies to support a 400% increase in Safeguard’s work force since 2006. Robinson also serves on the board of advisors for SCG Partners. Prior to joining Safeguard, Robinson led successful consulting practices at CGI Inc., NetGov Inc. and ORION Consulting. He is a CPA in the state of Ohio. In 2010, Robinson was recognized by Crain’s Cleveland Business as CFO of the Year in the category of large private companies.

Source: HousingWire

Safeguard Properties Receives Partnership Award from Code Enforcement Agency

Posted on by Safeguard

Safeguard in the News
January 6, 2016

Safeguard Properties, the largest mortgage field services company in the United States, received the inaugural public-private partnership award from the American Association of Code Enforcement (AACE) at the AACE’s conference in Florida late last year.

The public-private partnership award recognized Ohio-based Safeguard Properties for its collaboration and contributions, which include many years of providing education and session presentations. Safeguard’s contributions to education include a first-of-its-kind training webinar on the mortgage servicing industry. The company also collaborated with AACE to increase awareness about the industry by producing marketing materials and including leadership at state and national conferences.

“Safeguard is honored to be presented with this award,” said Michael Halpern, Director of Community Initiatives for Safeguard Properties. “We value our partnership and will continue to work with AACE as a commitment to eliminate blight in neighborhoods across the country.”

In addition to receiving the AACE’s first-ever public-private partnership award, Safeguard offered eight scholarships to attend the AACE conference for the fifth year.

“Decreasing municipal budgets impact the feasibility of code officials being able to participate,” said Sherri Johnston, ambassador-at-large. “The scholarship program has opened the doors to continue education and develop the skill sets needed to serve their communities.”

The eight scholarship recipients were Keelah Allen-Smith, College Park, Maryland; Nathan Buxton, Jefferson County, Colorado; John Christophe, Austin, Texas; Jamilla Dewitt, DeKalb County, Georgia; Barry Humphries, Hueytown, Alabama; Sadie Norton, Vernal City, Utah; Jeff Posival, Irving, Texas; and Amrinder Singh, Reading, Pennsylvania.

Source: DS News

Amitha Rao: Technology Adoption In Field Services Key To Client Satisfaction

Posted on by Safeguard

Safeguard in the News
November 5, 2015

PERSON OF THE WEEK: Amitha Rao is assistant vice president of client systems and data analytics for field services company Safeguard Properties. Specifically, Rao leads data architecture and governance for all systems, with the goal of creating a consistent and reliable information management platform. MortgageOrb recently interviewed Rao to learn more about how technology is helping Safeguard improve its operations and boost client satisfaction.

Q: What is an example of big data being leveraged at Safeguard?

Rao: At our company, we have been using big data and the latest technologies to inform mortgage servicing clients on the status of their properties across the country. For some time now, we have been leveraging that data to be more proactive at properties. Utilizing big data analysis, we can identify patterns, predict behavior, and mitigate potential risks.

Investing in mobile technologies has also helped us gather salient data points. For example, the location of a contractor can now be extracted as a part of the geographic information systems (GIS) built into his or her device. Safeguard’s mobile application team continues to upgrade to newer technologies, enabling us to collect salient data without burdening our contractors with extra steps.

Mobile devices in conjunction with our in-house developed mobile applications have also increased the quality of the data collected by our contractors. For instance, Safeguard’s mobile apps will not allow duplicate or out-of-date photos to be uploaded into our systems. The apps will also flag any data being uploaded from an incorrect property location based on longitude and latitude or through prior geo-location markers.

Q: How do you use data to drive performance to meet client service level agreements (SLAs)?

Rao: Every mortgage servicing client and investor has its own unique set of regulations and guidelines on how to service properties. Our company’s established processes and data collection experience makes it easier to adapt to this multitude of variances in work orders. We collect data, no doubt, but our data collection is very detail oriented and tailored to a very specific need. An example our CEO often uses is, “If it is Tuesday and raining and if the door of the property is blue, the contractor needs to do X, Y and Z.” We have the flexibility to extract those specific client parameters and relay those details to the contractor. Safeguard is able to customize and perform next actions based on various client parameters.

We also track our SLAs closely and take pride in making sure we are on target and above client and investor expectations. The SLA around various processes is tracked and communicated to the folks running the business. If a client’s expectations are not met, then, the issues in question are thoroughly analyzed to understand the deficiencies or roadblocks in both data and processes, and mitigating controls are put in place to minimize them. This would not be possible if we were not capturing data at the lowest granularity.

Q: What new initiatives have been implemented to provide timeliness and quality of property preservation?

Rao: In the mortgage field services industry, timeliness and quality go hand in hand. Our contractors are not only ranked on how soon they send us the results from the field, but also by their quality of work. Contractors are evaluated using scorecards that are calculated either bimonthly or weekly. The scorecards are trended to identify issues and patterns and correct any discrepancies.

The contractors are made part of this process through their vendor account managers (VAMs), who review the scorecards with the contractors so that they understand the issues and, if a pattern is identified, modify their practices, as well. For example, a particular contractor might be great at submitting and completing work, but if its work is not up to the standards required by Safeguard and our client, then adjustments are necessary and critical. Utilizing the readily available data from our systems and identifying the issues and solutions, the VAMs can coach and help the contractors to deliver both timely and quality results.

Q: How has information foraging been applied in the industry?

Rao: Information foraging is how people (i.e., data consumers) search for information. A better understanding of search behavior can improve the usability of desktop and mobile applications or other interfaces. This has been a big initiative for us. Because contractors and inspectors are the eyes and ears of the clients and investors, close to 10,000 attributes are collected on a work order. It would be impossible to manually review all of this data and identify risks and patterns. However, we are able accomplish this by utilizing home grown, custom developed, intricate business algorithms.

Having access to a million data points means property risks can be identified and communicated to the client with little or no delay. For instance, we can identify if a property with a sump pump has had its electricity turned off. If so, this is a potential “actionable condition,” and as a result, we can immediately have the electricity reinstated to ensure that the property is no longer at risk.

Q: How has geospatial analysis impacted property preservation industry?

Rao: We have expanded our GIS analysis in the last several years. What began as a solution for clients in managing weather and disaster-impacted properties has led to quality assurance and better service offerings.

Map Alert was our first experience with geo-location technology. Clients log onto the system, and by using interactive U.S. maps, they can view their current properties being serviced by Safeguard, properties that need repairs, bids on properties, grass cuts in progress, properties that are affected by severe weather or properties that could potentially be impacted by severe weather and natural disasters.

Very early, our IT team identified the huge potential for geo-location services in the mortgage field services industry. We expanded its use beyond work orders and disasters into ensuring that the inspectors were at the correct property address and assigning rush or urgent work orders to contractors based on real-time location data, to name a few. These initiatives save both time and costs and also mitigate risks.

Additionally, we began utilizing data visualization. By visualizing order volume, on-time and late percentages geospatially on a U.S. map rather than in an Excel file, we can make more informative decisions on order reallocation, contractor portfolios, timeliness of orders, and cost and volume distribution.

Q: What optimization techniques have been applied to collect data from fields?

Rao: Newer mobile technologies have made it easier for Safeguard and its contractors and inspectors to collect property data in the field. With more than 90% of the network utilizing these technologies, unique metadata is captured after each visit to a property. Coupled with geo-location technology and data analytics, we have continued to deliver the highest-quality results in a timely manner.

Additionally, all of the data collected by our contractors is stored on a faster and reliable network in multi-data centers with flash recovery and backups through a more reliable data storage infrastructure.

For the future, Safeguard is testing the use of video in the field to paint a better picture of property status, the extent of damages and overall property conditions.

Source: MortgageOrb

More Consistency and Better Alignment Are Needed in Property Management

Posted on by Safeguard

Safeguard in the News
September 17, 2015

The housing industry has reported many positive metrics for 2015, leading many to proclaim its recovery from the devastation of 2008. Vacancy levels remain high in many parts of the country, however, as so-called “zombie properties”—abandoned homes for which foreclosure has begun but not been completed—are breeding blight in communities.

Many mortgagees or servicers are refusing to perform consistent upkeep on zombie properties because the foreclosure process is not yet complete, and the homeowner has abandoned the property; the result is the spreading of blight, which often deters investment, depresses market values, and attracts violent crime, having a negative impact the health of entire communities.

The issue of stabilizing such communities was a major point of discussion at the Property Management Lab as part of the 2015 Five Star Conference and Expo on Thursday in Dallas. Panels discussed such topics as communications strategies between vendors and servicers, best practices for registering vacant properties, partnerships between stake holders for maintaining vacant properties, the challenge of managing properties to code compliance, and ensuring consistency between properties.

The former plan to engage code enforcement in order to avoid citations from the city was for servicers and field services providers to make a pitch to the city officials in which the property was located. But the cities are in a different position because revenues are down due to lower property values.

“What we’re seeing is more aggressive citations and more vacant property registration fees, because that’s making up the city’s revenue, right?” said Kelllie Chambers, Assistant VP, Investor Relations, Safeguard Properties. “What we’ve been successful in doing in working with the cities is employing an actual employee in the city and having them go and meet with code enforcement and make more of a personal connection, so that if the code officer has a problem at 123 Main Street, instead of issuing a citation, they call up their personal representative from Safeguard, or Wells Fargo, or Chase, and says, ‘Hey Kellie, I talk to you all the time. I’ve got this problem at 123 Main Street. You think you can get somebody out here today to resolve it?'”

Chambers said the property preservation process needs to be better aligned from pre-foreclosure sale all the way to REO, because now servicers generally have a minimalist approach to property maintenance in pre-foreclosure sale so as not to interfere with the borrower’s homeownership. Once the property goes into the servicer’s REO inventory, however, they are typically much more proactive about maintaining the properties, which can send a mixed message to the other homeowners on the block.

“On one side of them, they could have a property in pre-foreclosure sale with the bare minimum being done, gutters hanging, with the grass being cut every two weeks,” she said. “On the other side of them, they could have a vacant abandoned property that’s REO with the grass being cut every six or seven days, and there’s fresh mulch, and they’re pressure washing the house. It doesn’t bode well for the community. It doesn’t send a good, consistent message to the neighbors. The future of property preservation is to align that property preservation list of tasks that need to be done to the property to be consistent from start to end and not just up the ante or do more just because you have the property in your own inventory.”

Source: DS News

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More consistency and Better Alignment is Needed in Property Management [pdf] (To access article, please turn to page 22.)

Field Services Evolution

Posted on by Safeguard

Safeguard in the News
August 4, 2015

IN THE FIRST QUARTER OF THIS YEAR, THE TOTAL NUMBER OF FORECLOSURE FILINGS IN THE U.S DROPPED TO THE LOWEST NUMBER SINCE 2007, ACCORDING TO REALTYTRAC. BUT THE AVERAGE NUMBER OF DAYS IT TOOK TO COMPLETE A FORECLOSURE ROSE TO A WHOPPING 620 DAYS NATIONALLY, AND IN SOME STATES FORECLOSURES TOOK LONGER — MUCH LONGER.

In New York, the dubious winner of the nation’s longest average time to foreclose, it took an astounding 1,475 days to complete foreclosure. That’s more than four years. Which is why proper-ty preservation companies, despite a lower number of foreclosures overall, are still vital in managing risk for lenders. A lot of things can happen to a property in 1,475 days.

And as the field services industry continues to ride the REO boom and bust cycle, it’s under increasing scrutiny from in-vestors, communities and regulators to deliver top-tier service within strict guidelines. Companies have adapted to this new REO environment by finding innovative ways to do the import-ant work of protecting and maintaining assets.

THE RISE OF MOBILE
Investors today crave certainty, the kind that results from lots and lots of data points. To provide that degree of assurance, field service providers have taken data collection to a whole new level. Forget the stereotype of a field servicer walking around with a clipboard and a camera. Just in the last 12 months, the explosion of available real-time data is driving a new model of field servicing that would have been unrecognizable in the past.

For example, last year Safeguard Properties received about 100,000 photos from the field every day — an impressive num-ber. Today, with 94% of its vendor base using mobile to submit information, that number has climbed to more than 1 million photos a day, a 900% increase.

“Mobile has been an unbelievable factor in delivering richer and more timely data,” said Alan Jaffa, CEO of Safeguard Properties. “A lot of our clients get hourly or even more frequent data feeds from us.”

The speed at which servicers can get information from their vendors is a key factor in quality control, Jaffa said.

“Investors today are reviewing property information with a fine-tooth comb. The entire review process has been extended, and investors are not looking to wait for weeks to get that information,” Jaffa said. “Our vendors are under scrutiny to get that information back quickly.”

With mobile apps, Safeguard vendors are able to share data almost instantly, and pictures and property specifics are reviewed during the same day.

“There’s so much detail we now provide to our clients. Years ago, having photos of every single bedroom wasn’t as critical, but today it’s not just photos, but smart scripts that ask all the right questions to get the most up-to-date position on the property,” Jaffa said.

That kind of information is an essential ingredient as lenders manage third-party vendors. The Consumer Financial Protection Bureau has made it clear that financial institutions carry all the risk when it comes to what they outsource, and field service providers are keenly aware of their role in compliance.

For Ron Briggs, senior vice president of business development at Aspen Grove Solutions, the only way to comply is by lever-aging technology to deliver what investors and regulators are looking for. “Technology is the great enabler when it comes to introducing predictable, repeatable and auditable processes that satisfy business and regulatory needs,” Briggs said. “We provide our clients with the ability to know who was at a property, when they were at a property, and through the use of a standardized criminal background check, the person’s pattern of past behavior.

“Through the use of our technology, our clients can measure the quality of the vendor’s work, which can lead to additional training so vendors are equipped to do the best possible job. As such, technology, the business, and regulatory needs are aligning to provide line of sight from work assignment to service delivery at the property.”

The rapid transformation into a tech-centric model has shifted the role of the front-line workers in field services. As more people review the files, there is more emphasis on accountability. But the new model benefits these workers as well.

“Our subcontractors used to spend 12 hours in the field, and then spend another four hours rekeying that information,” he said. “Technology has enhanced the way they do business and they love it.”

The evolution of the way properties are secured and maintained comes at the right time for communities that are demanding greater transparency into the process.“

Just to protect and preserve a property may not be enough anymore. How we did that five or 10 years ago looks very different than what we need to do today,” Jaffa said.“

Cities across the country are not interested in hearing who owns the property — the fact that the bank owns it isn’t the issue. The issue is that this property has to be maintained like any other property on the block.”

By maintaining properties to community standards, communities are improved while assets are protected and preserved. It’s a win-win for all parties. “Technology is the great enabler when it comes to introducing predictable, repeatable and auditable processes that satisfy business and regulatory needs.”

Meeting the Biggest Challenges in Field Servicing

Alan Jaffa, CEO of Safeguard Properties

What is the biggest challenge in field servicing right now?

The biggest challenge in field services is the ever-changing regulatory environment and scrutiny the mortgage servicing industry is under. This scrutiny not only affects mortgage companies, but cascades down to field services companies and our vendors and employees.

Although these new regulations and laws create a challenge for us, they also provide opportunities to partner with clients and continuously improve processes and procedures. We must take additional measures to ensure our mortgage servicing clients remain in compliance.

We are committed to investing in new technologies, and new regulations encourage further innovation in that regard. It also includes additional controls for our vendors in the field by using geo location technology and smart scripts in Safeguard’s proprietary mobile applications. Soon this may include video, as we begin testing its use in the field. The results are improved quality and efficiencies for us, our vendors and clients.

Additionally, Safeguard is increasingly participating in both annual and periodic audits with clients, largely as a result of regulations now requiring increased monitoring of service providers. These audits are beneficial, and Safeguard uses them as a way to partner with our clients to identify areas for improvement. We also conduct our own internal audits to ensure we are meeting our clients’ expectations prior to their requests for information, in addition to conducting audits on our vendors to ensure quality and efficiency.

Safeguard just celebrated 25 years in business. What has been key to thriving for so long?

Our success and reputation in the mortgage field services industry are built on a fundamental commitment to customer service, a sense of responsibility for the work performed, and a clear and comprehensive understanding of the investor and insurer compliance issues that affect the mortgage industry.

Founder Robert Klein’s vision was to create a company focused on client satisfaction through business partnership. He created “Customer Service = Resolution,” which is more than a motto. It is a promise to our clients that we will deliver services at the highest levels of quality in the industry.

We are committed to building and sharing industry best practices to protect the integrity and value of our nation’s housing stock, to deliver the most efficient and cost-effective services in the industry, and to work on behalf of our clients to comply with all regulatory requirements.

Safeguard also is committed to providing innovative solutions through our investment in new technology. Through mobile adoption by our vendors, investing in data centers and piloting new technology like video in the field, we continue to ensure quality and innovation for the mortgage servicing industry.

What are the consequences of fast-track legislation for our industry and why was it important to create a Fast-Tracking Legislation Resource Center?

Robert Klein has been a leading proponent of the concept of fast-tracking vacant and abandoned properties, bringing the topic to the forefront by fostering meaningful industry dialogue. The Safeguard Fast-Track Legislation Resource Center is a tool to further assist servicers and communities in finding a solution to the vacant and abandoned property issue.

The interactive map features states that have enacted, are contemplating enacting, or have expired/inactive fast-track legislation for vacant and abandoned properties. Information includes a link to the final bill’s text, legislation history, and links to any media coverage of the legislation (if applicable).

An important component to fast-tracking vacant and abandoned properties is the ability to determine if a property is a candidate for the expedited process. To help with this determination, the center also highlights definitions of “vacancy” or “abandoned” within each piece of legislation.

Most importantly, the fast track legislation initiatives around the country are designed to ensure that vacant and abandoned housing stock can be brought back to useful life, thereby minimizing blight in the communities where they exist. Obviously the ability to make that asset available to a family that will care and love that home is so important to eliminating blight, assuming that all steps have been properly taken to ensure that the foreclosure was handled properly within the legislation.

We felt it was important for Safeguard to take the lead and invest the time and resources in researching and consolidating fast-track legislation so that it can be easily shared. Lawmakers and business leaders are searching for ways to rebuild communities and our hope is that this tool will be a useful resource to help stabilize at-risk neighborhoods and stem blight.

One of Safeguard’s community initiatives is to educate municipal leaders about property preservation best practices. What kind of results have you seen with this outreach?

Our intent is to provide an overview of the servicing industry’s best practices in preserving vacant properties.

Creating channels of open communication continues to be the biggest challenge for code officers, yet it is attainable. We created Compliance Connection, an innovative technology solution that connects code officials to the servicing industry. By becoming familiar with banking and servicing procedures, local code enforcement and building officials have been able to identify and communicate directly with the proper loan servicer through this technology. This eases the frustration of not receiving a response to their warnings and violation notices that may have been unintentionally sent to the wrong parties.

Please click here to view Field Services Evolution [pdf].