Safeguard in the News
December 13, 2024
Source: MortgagePoint
On November 11-13, 2024, the National Property Preservation Conference (NPPC) celebrated its twentieth anniversary. It brought together industry professionals representing mortgage servicing, property preservation, and related government agencies for several days of discussion, education, and networking centered on all facets of the mortgage field services industry.
Created by Safeguard’s founder, the late Robert Klein, the NPPC moved to a new venue this year at the MGM National Harbor Resort and Casino near Washington, D.C. The festivities kicked off on the evening of Monday, November 11, with a Welcome Reception at the Casino’s Felt Lounge before Tuesday commenced with a full day’s worth of programming.
The Lay of the Land
Tuesday’s schedule began with a Keynote Address from Bill Killmer, SVP of Legislative and Political Affairs at the Mortgage Bankers Association. Killmer put the recent presidential election under the microscope, breaking down both how the election played out and examining the various ways President Trump’s impending return to the White House could impact the industry.
While the House had still not been formally called for the Republicans at the time of the event, Killmer’s presentation outlined various scenarios. Under the “full GOP sweep” scenario that Killmer posited, and which eventually proved to be the case, Killmer noted that President Trump’s administration would likely pursue rollbacks of various aspects of President Biden’s regulatory agenda (such as the Inflation Reduction Act) and to extend the tax provisions implemented by the Tax Cuts and Jobs Act. He then delved into various likely Trump administration priorities, such as corporate tax rates, FICA thresholds, and supply-side Housing Tax Credits.
Killmer also noted that Republican control of the White House and Congress could reduce “the impact of any congressional pushback on moves by a Trump FHFA Director to shrink GSE footprint, rollback equity plans, raise fees, or end conservatorship via administrative action.” However, Killmer added that “prospects for passage of comprehensive GSE Reform legislation remain low,” but that narrower, more targeted GSE-related bills were more likely to get traction. He also said to expect a new CFPB Director, as well as possible changes to the Bureau.
Continuing a longstanding NPPC tradition, Ed Delgado, AMP, Managing Director of Mortgage Policy Advisors and Chairman Emeritus of Five Star Global next moderated a panel of industry experts focused on “Current Trends and Future Outlook of the Property Preservation Industry.” This year’s panelists included Michael Greenbaum, COO of Safeguard Properties; Benjamin Gottheim, VP, Servicing Policy, Single-Family Portfolio & Servicing at Freddie Mac; Leslie Meaux-Pordzik, SVP for the Office of Issuer and Portfolio Management at Ginnie Mae; Tim Rood, Founder & CEO at Impact Capitol; and John Thibaudeau, VP, Single-Family Real Estate Asset Management at Fannie Mae. [Editor’s Note: Five Star Global is the parent company of MortgagePoint, and MortgagePoint was a media sponsor of this year’s NPPC.]
Rood built upon Killmer’s presentation by discussing how President Trump’s reelection is likely to be a “game-changer” for industry regulation. Whereas the Biden administration prioritized issues such as climate change, DEI, and minority homeownership, Rood said that we should look to the precedent of President Trump’s previous administration for suggestions of what to expect. Rood also suggested that GSE reform and a reexamination of conservatorship will likely be on the table.
The panel discussed other likely trends on the horizon during the incoming administration, including changes in underwriting criteria, a focus on ways to lower interest rates, and potential friction between President Trump and Fed Chair Jerome Powell. Housing, and in particular strategies to make housing more affordable, should be a goal, Rood noted, who observed that “Living indoors has never been more expensive.”
The panel said that foreclosure rates and REO inventories are expected to remain low, barring any unforeseen “black swan” events. Gottheim explained that more people are selling after a foreclosure is initiated but before the process is completed, exiting with a high home-sale price. The whole ecosystem, Gottheim continued, is focused on working with homeowners and letting them leverage the high levels of equity the market currently makes available.
Delgado asked Thibaudeau to discuss Fannie Mae’s HomePath program, which allows buyers to purchase REO properties out of Fannie Mae’s inventory, allowing owner/occupants more chances to purchase a home without competing against institutional investors.
Thibaudeau added that due to ongoing inventory shortages, there is a renewed focus on rehabbing properties before sale, as opposed to selling as-is. Safeguard’s Greenbaum then laid out some of the challenges currently facing property preservation vendors, including competition for workers from the gig economy and the ongoing impact of record-low defaults. Despite the cyclical nature of real estate, properties still need to be assessed throughout that cycle. He also suggested that prop pres companies struggling to make ends meet may need to explore opportunities within “adjacent markets” such as single-family rental. He also reiterated the importance of staying focused on the fundamentals, ensuring comprehensive assessments to “truly understand the state of the property upfront.”
Exploring Different Facets of the Industry
Next up was a panel focused on the legal aspects of the property preservation sector, entitled “Understanding and Adapting to New Legislation,” moderated by Linda Erkkila, General Counsel of Safeguard Properties and featuring Greg Wallach, Supervising Attorney at Aldridge Pite; Marcel Bryar, Managing Director of Mortgage Policy Advisors LLC; and Brendan Kelleher, Associate Director of Loan Administration and Residential Policy at MBA.
The panel focused heavily on so-called “squatter laws” across various states including Alabama, Florida, and Georgia, as well as providing examples of relevant affidavits. It also discussed the implications and aftermath of Loper Bright Enterprises v. Raimondo, a 2024 Supreme Court case that overturned the 40-year-old Chevron doctrine.
The stage then welcomed a panel entitled “Safeguarding Assets: Best Practices for Inspections and Recovery in FEMA-Declared Disasters.” Speakers included Troy Badman of FEMA Individual Assistance; Kimberly Dawson, SF Collateral Risk-Real Estate Asset Management Director, Property and Field Solutions at Fannie Mae; Johanna Granados, Account Executive at Verisk; and Laura MacIntyre, President of DIMONT.
They discussed takeaways from the two-dozen billion-dollar weather and climate disasters that impacted the United States in 2024 and what factors FEMA considers when evaluating a request for an Individual Assistance (IA) declaration, including state fiscal capacity and resource availability; uninsured home and personal property losses; disaster-impacted population profile; impact to community infrastructure; casualties; and disaster-related unemployment. They also explored the increasingly difficult challenges of insurance costs and coverage, noting that average homeowners’ insurance costs have become significantly high in states such as Oklahoma, Texas, and Nebraska. The panel also underscored the critical importance of identifying damages early in the aftermath of these disasters.
Following a lunch break, programming resumed with a Fireside Chat with Marcea Barringer, Duty to Serve, Office of Housing and Community Initiatives, FHFA, before moving into a look at Native American Housing Programs, moderated by Elizabeth Squires, AVP, Client Account Management, Safeguard Properties, and featuring insights from Erin Persons, Director, Duty to Serve at Freddie Mac.
The afternoon continued with “Code Compliance: Supporting Community Revitalization Through Collaboration,” moderated by Steve Meyer, AVP, High Risk and Investor Compliance at Safeguard Properties, and featuring Bryan Wagner and Victor Martinez of the American Association of Code Enforcement (AACE); Jennifer Rossman, Director of Client Operations at Safeguard Properties; and Amanda Koontz, Manager of Property Preservation at Carrington Mortgage. The Code Compliance panel delved into topics including current primary challenges for Code Enforcement, servicer perspectives, pre-sale vs. post-sale, the handling of violations, property registration challenges, the importance of direct point of contact for handling violations, and the future of code enforcement. The discussion included insights into what conditions are driving most violations, whether the violations are complaint-driven or if there are processes to proactively inspect areas for violations, and what issues are causing the most problems for cities. Looking ahead, the panel also discussed the potential future of code enforcement, such as using AI to identify violations.
The agenda next brought attendees “From Claim to Closure: Navigating Expectations Throughout the Hazard Insurance Claims Process.” Safeguard’s Michael Greenbaum returned to the stage for this session moderated by Jami Sherr, President and CEO at Sterling Claims Management, joined by Baker Breedlove, VP at Lakeview Loan Servicing, LLC; Aubrey Gilmore, President of Rutledge Claims Management, Inc.; and Priscilla Rivera, VP, Client & Operational Development at Sterling Claims Management, Inc. They walked through the ins and outs of insurable vs. non-insurable damages, ranging from water, fire/smoke, and wind/hail to vandalism and theft. They also discussed examples of areas where servicers may be “leaving money on the table,” citing data from a study by the Office of Program Policy Analysis & Government Accountability, an office of the Florida Legislature.
As the day headed into the home stretch, Lisa Solis, Director, Investor Compliance at Safeguard moderated the day’s Investor/Insurer Panel Discussion, featuring insights from William Collins, Director, National Servicing Center at U.S. Department of Housing and Urban Development; Chris Cordina, Real Estate Manager at Fannie Mae; and Geoff Williams, Loss Mitigation Senior Manager at Freddie Mac. They continued the discussion of how servicers and prop pres companies need to address weather-related property damages and claims.
The first full day of programming wrapped up with an “Endnote Address” from Julienne Joseph, Senior Counselor to the Secretary, HUD. Her speech spoke powerfully about the human aspects of what the industry does, focusing on the importance of helping people pursue the American Dream of homeownership. She recounted how her career was shaped by seeing firsthand the struggles of American homeowners and wanting to try to ensure that she helped people avoid those feelings of desperation that come with economic hardships. She shared how she came to work under HUD Secretary Fudge and how the Secretary sought to recruit people who remained “married to [their why]”—to the internal, personal drive to help people and make a difference in the industry.
A Focus on Tech, Government, and Servicing
The second day of the conference opened with a Keynote Address from Julia R. Gordon, Assistant Secretary for Housing and Federal Housing Commissioner, HUD. With a new Presidential administration set to take the White House in January, Gordon used the keynote as a chance to recount some of the accomplishments she was most proud of from her tenure as Federal Housing Commissioner, including renovation loans, the COVID waterfall designed to keep people in their homes during and after the pandemic, and allowing lenders to consider first-time homebuyers’ rental payment history.
She also noted that the increased focus on manufactured housing as one lever to wield against housing shortages would likely continue.
Following Gordon’s Keynote, the penultimate panel rolled out with the “Tech Transformations: Leveraging AI and Other Innovations for the Future of Property Preservation” presentation. With Mike Greenbaum, COO, Safeguard Properties moderating, panelists for this tech panel included Min Alexander, CEO and Founder of BOSSCAT Home Services and Technologies; Robyn Bui, SVP at Quality Claims Management; Clint Lien, VP of Cost Research and Product Development at The Bluebook International, Inc.; Vin Vomero, Co-Founder & CEO at FoxyAI; and Scott Heller, VP, Information Technology at Safeguard Properties.
The panel delved into the hot topic of AI applications within and throughout the property preservation sector, including applications such as helping determine occupancy, aiding in disaster inspections, and utilizing machine learning models for forecasting. Heller compared the current state of AI to the early days of the internet, predicting “exponential growth” compared to the pace of traditional technological advancements.
Overall, the panel laid out multiple examples of how AI adoption is driving efficiency, cost savings, and improved decision-making within property preservation and management. They also noted headwinds such as high initial investment costs, data-quality requirements, and the ongoing training needs of AI models.
The conference then wrapped up with the final panel of the day, entitled “Tackling the Challenges of Servicing Government-Backed Loans.” Jennifer Hopkins, Client Account Manager, Safeguard Properties moderated and speakers for this session included Jodi Gaines, CEO at Claims Recovery Financial Services; Scott Arnold, VP at National Field Representatives; Carrie Derr, Property Preservation and Liquidation Manager at Planet Home Lending; Brooke Marshall, VP Property Preservation at LoanCare; Diane Snider, Post-Foreclosure Claims Manager at Truist; and Justin Tucker, VP MSR Sub-Servicing Oversight & Asset Management at Lakeview Loan Servicing.
Once the event’s final panel wrapped, women attendees were invited to gather for the Women’s Impact Network (WIN) Luncheon. The event was created in the spirit of leadership, mentorship, and empowerment of women in the Property Preservation industry.
Hosted by Elizabeth Squires of Safeguard Properties, Jodi Gaines of CRFS, and Laura MacIntyre of DIMONT, the event created an opportunity to share individual experiences both as a mentor and a mentee. Attendees were encouraged to network not only at the event, but to stay connected throughout the year. With the success of the inaugural event, the WIN Luncheon looks to become a staple at future NPPC events.
Next year’s NPPC is scheduled for November 17-19, 2025, at the MGM Resort & Casino National Harbor. For more information on the National Property Preservation Conference, visit nppconf.com.
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