Safeguard Properties

Joe Iafigliola Sees the Future of Field Services

Posted on by Safeguard

The June issue of Servicing Management featured an article by Safeguard Properties Vice President of Vendor Management Joe Iafigliola titled The Future is Now.

The Future Is Now

In the field services industry today, fast-changing  advances in mobility and geolocation are molding the future.

In 1989, Universal Pictures released the science fiction comedy “Back to the Future II,” a sequel to the original hit that seamlessly picked up where the original story line left off. Marty McFly (Michael J. Fox) and his friend Dr. Emmett “Doc” Brown (Christopher Lloyd) have just returned to the year 1985 from 1955 when Doc learns that Marty’s future is in jeopardy.

Ironically, that future is 2015, where the film depicts a world with flying cars, hoverboards, dehydrated pizzas, shoes that lace up on their own and self-drying clothes. And although most of what the movie predicts for the year 2015 is different from what we actually see today, the film did accurately foresee a number of technological changes, such as the increased use of public cameras, flat-screen television sets mounted on walls, the ability to watch six channels at once, Internet video chat systems and the increase in plastic surgery, to name a few.

If we were to go back to 1985, we would see that vendors in the field services industry worked very differently than they do today. They used pen and paper to report findings and Polaroid or roll-film cameras to paint a clearer picture of a property’s condition. The photos would then be overnighted to the field services company. Fax machines also were integral to daily operations. Vendors received and sent their daily work orders via fax. For field services companies, thousands of work orders would be faxed daily to their vendor networks, and just as many completed work orders would be faxed back daily. These completed orders would then be hand-sorted and matched with the coinciding pictures. Whether you were a field services company or a vendor, keeping up with the thousands of faxes going in and out each day, and the photos that literally arrived by the truckload, had its challenges.

Any changes or additional orders would have to wait until the next day because inspectors and vendors could not be reached in the field. All updating would have to be completed at the end of the work day. It wasn’t until the early 2000s that field servicing went to digital reporting through the use of computers and email for orders and photos, changing the way vendors operated and setting the stage for future innovations.

In the field services industry today, fast-changing advances in mobility and geolocation are molding the future, with video capabilities not too far behind. New technologies are emerging every day, with some predicting an increase in automation and the use of robotics and drones.

But do they have a place in the property preservation world? And will they help mold the vendor of the future, or are they just expensive toys?

Next level of mobile tech
One of the most recent and significant advancements for vendors in the field services industry has been the ability to be mobile and update work orders efficiently from the field. Mobile devices such as smartphones and tablets, as well as an improving wireless infrastructure, have enabled vendors to report property findings in near real-time and have saved many vacant or abandoned properties from further deterioration or damage. It also has improved the quality of results received from the field. Each vendor and its crew needs to be equipped with a smartphone or mobile device with a 4G connection in the field to succeed in the field services industry today.

Currently, inspectors and vendors follow smart scripts on those mobile devices that ask specific questions about the property as they walk through and document what they see. The vendor of the future will use the next level of smart scripts when completing work at a vacant property. Scripts will be personalized to a specific work order’s series of tasks that conform to specific investor and client guidelines and alert vendors to state and local regulations, in addition to any nuances based on loan type or allowables. Property-specific conditions, events and history will directly play into the way we assess issues and preserve homes. This increased level of real-time oversight will translate into an even higher level of quality and compliance with those specific guidelines and regulations.

In addition to smart scripts, today’s mobile devices have allowed vendors to take photos at properties and send them in near real-time. As storage and transmission of those digital photos become cheaper and mobile device manufacturers continue to improve the camera’s functionality, quality photos are being submitted to field services companies and their mortgage servicing clients with higher resolution. This is important in giving an accurate view of the property’s condition and clearer evidence of any damage present.

Industry veterans predict mobile video will become an important tool for the vendor of the future to use as a way to tell a more three-dimensional story about vacant and defaulted properties. Again, advances in digital technology and the increasing affordability of digital or mobile storage options are making this a viable option for the vendor of the future.

Field services companies are currently testing the use of video in the field. Although it is unlikely that the technology will serve as a replacement for capturing photos, it can be an effective additional resource when immediate authorization is needed to complete the work.

For example, if a property has an ongoing roof leak that needs to be remediated quickly, vendors can use services such as Facetime or Skype from their mobile devices to show the leak and damage to the field services provider. That company can then patch in the client or investor and potentially secure immediate authorization to mitigate the issue.

The advancements in smart scripts, photo functionality and video all help vendors deliver a higher-quality property condition report to mortgage servicers and investors by providing important visual details and supporting information, further increasing the level of understanding of what is happening at vacant and defaulted properties.

Geolocation and work distribution
Another recent advancement in technology for the field services industry is capturing geolocation or GPS data – longitude and latitude coordinates – attached to photos submitted by inspectors and vendors through mobile devices. That data is continuously analyzed by field services companies after each property visit to ensure vendors are completing services at the correct property and during the proper time frames.

Taking this advancement a step further, field services providers soon will be able to assign work orders using geolocation and GPS technology to identify the vendors closest to a property when an emergency or urgent work order arises, for example. This technology allows work orders to be distributed similar to the way Uber’s ride-sharing service dispatches drivers when summoned by passengers needing transportation.

Field services companies will seek out the closest, top performer in that area and alert that vendor to the new or updated work order. If that vendor is unavailable, the field services company contacts the next-best vendor that is nearby until one is found to complete the work. This technology benefits the vendor in that it saves travel time and money, or what is known as “windshield time.” It also provides incentives for vendors and their crews to perform work at the highest level of quality and service because they will be rewarded with additional work. It also benefits the field services company – and, ultimately, the client – as work orders will be completed more efficiently.

The vendor of the future may see a similar work distribution system put in place for many common inspection and preservation orders. In addition, some field services providers are testing the use of an open order marketplace, where work orders are placed in the system and are up for grabs by the top-performing inspectors and vendors in that area.

This shifts the field services company and vendor relationship from a push environment to a pull environment, where vendors will have an opportunity to grow and pull in more work if they are in good standing. This only applies to those common day-to-day orders that do not require a special skillset or licensing, such as asbestos remediation or roof repair.

Crew management
Crew management is another area where the vendor of the future can benefit from advances in mobile device and geolocation technology. For example, when a main contractor assigns a work order and dispatches a crew to a job, each crew member’s information can be stored in an application on the main contractor’s mobile device, ensuring that background checks and licensing requirements have been verified. And, based on data collected on the device, vendors, field services companies and clients can be certain the right person is performing the right work at the right property.

Crew members or subcontractors also can receive the full scope of the work order and history of a particular property prior to performing the work. The main contractor can choose to eliminate certain aspects of the order, such as pricing, but the primary property information can still be displayed. This helps to give crew members and subcontractors a better understanding of the entire scope of the work to be completed at the property and shares the issues other inspectors or vendors have faced during past visits.

To support the vendor of the future as they maneuver through a rapidly changing industry and regulatory landscape, training and education will become even more important. Learning management systems that embrace technology and digital tools can be conveniently accessed by vendors and present topics that can be easily adjusted to align with the desired knowledge outcome.

For instance, our firm recently launched its own learning management system called the Safeguard Knowledge Center. This password-protected site is accessible via mobile device and contains videos, job aids, checklists, guideline updates and other documents – anything a vendor may need to perform work at a property. The center can even be accessed from the field to provide real-time guidance, if needed.

This is especially helpful to the vendor of the future and its crews. A library of information can be used to build tailored refresher courses or annual training for seasoned crew members as well as curriculums specific to new hires on how to properly complete job functions and follow specific guidelines while preserving properties. This ensures a better quality of work and results will be sent to the mortgage servicing client.

Predictions for the future
Like in “Back to the Future II,” we are witnessing a glimpse into the future through new and emerging technologies. Although some may seem outlandish – like wild predictions such as flying cars and self-drying clothes – others may have some potential in this industry in the coming years:

  • Robotic automation: Automated lawn mowers or vacuum cleaners are a few examples of gadgets that currently exist but are not utilized in the field services industry because of issues with quality control. Manufacturers may perfect this science to allow for more accurate services or, perhaps, enhance them so that they can be controlled remotely through a mobile device or even from the office.
  • Drones: Industries similar to field services are currently experimenting with unmanned aerial vehicles. These gadgets can be controlled from the ground or launched on a pre-programmed route. Vendors potentially can use the geolocation coordinates of a property to send a drone to a property to capture photos or video. This can save time and money by eliminating additional trips to the property.

Drones also can help evaluate damages in difficult-to-reach areas and parts of a property. For example, they can be utilized to identify roofing issues, such as missing shingles or other damages, especially in inclement weather or with steep or clay-tiled roofs.

  • Real-time help button: Vendors completing work in the field often have questions that they need answered in a timely manner. Of course, they can call into their field services provider, but it would be more efficient if they could access a portal on a mobile device and start a live-feed, streaming-video chat with a decision-maker in the provider’s office. Potentially, a client can be pulled into the conversation to quickly authorize additional work or answer questions in real time.
  • Deterring theft/vandalism: As video and mobile technologies become more cost-effective, video surveillance systems can be installed in vacant properties to monitor any activity via a live or streaming feed. This would help deter thefts, vandalism or other property issues, which can potentially cost investors millions of dollars annually. Additionally, wireless motion detectors can be set up at properties to ensure they are secure.

Although no one can be certain where the mortgage servicing and field services industries will be in the next 30 years, field services companies need to be prepared for the future by equipping their inspectors and vendors with the latest technologies and systems. Technology will prevail, and companies willing to invest in the latest and greatest will succeed. It is up to the industry to embrace innovation and the disruptive technologies that can revolutionize the field services industry.

Joe Iafigliola is vice president of vendor management for Safeguard Properties Inc. He can be reached at (800) 852-8306.

Please click here to view The Future is Now [pdf].

About Safeguard 
Safeguard Properties is the mortgage field services industry leader, preserving vacant and foreclosed properties across the U.S., Puerto Rico, Virgin Islands and Guam. Founded in 1990 by Robert Klein and headquartered in Cleveland, Ohio, Safeguard provides the highest quality service to our clients by leveraging innovative technologies and proactively developing industry best practices and quality control procedures. Consistent with Safeguard’s values and mission, we are an active supporter of hundreds of charitable efforts across the country. Annually, Safeguard gives back to communities in partnership with our employees, vendors and clients. We also are dedicated to working with community leaders and officials to eliminate blight and stabilize neighborhoods. Safeguard is dedicated to preserving today and protecting tomorrow.  Website: www.safeguardproperties.com.

Linda Erkkila Talks About Working Together in the Mortgage Industry

Posted on by Safeguard

The April issue of Mortgage Banking Magazine featured an article by Safeguard Properties General Counsel Linda Erkkila titled Let’s Work Together.

Let’s Work Together

The property preservation industry could help regulators and lawmakers draft better rules to protect borrowers and neighborhoods, if given a seat at the table. Otherwise, the outcomes are likely to remain confusing and ineffective.  

The most basic definition of the word “foundation” is something that provides support for something. Despite the simplicity of the definition, the importance of having a good foundation is indisputable.

No one frames a new house before laying footers. No one starts a child’s education in high school. There are infinite examples where practicality dictates laying a foundation before proceeding.

Effective regulations are no exception. Good intentions are no substitute for establishing a proper foundation for regulations, and proper groundwork starts with a solid understanding of the industry one intends to regulate. That comes from asking questions, getting answers and asking more questions.

Peripheral knowledge is insufficient. Without knowing the intricacies of a targeted industry, desired outcomes may suffer. Poor foundation leads to shaky results.

Property preservation
The property preservation industry, also known as the mortgage field services industry, is a prime example. But it matters little what you call it-most people have never heard of the industry, and many who are aware of its existence made its acquaintance due to the vacant and abandoned, and likely not yet foreclosed, home right next door.

Yet if it weren’t for the existence of the property preservation industry, that vacant home likely becomes the neighborhood eyesore at best and, at worse, a prime location for criminal activity.

If you are still in the dark, search the Internet for key words like “zombie property” or “blight” to bring you up to speed.           

Regulators, too, are making the industry’s acquaintance. This is largely due to its inextricable link to the mortgage industry’s meltdown, also known as the subprime crisis or the housing collapse-terms just about everyone has heard at some point in the past seven years.

In the race to regulate any subservicing activity affiliated with the hobbled mortgage industry, well-intentioned regulations aimed at perceived property preservation shortcomings are not likely to fulfill their calling because the basis for some regulations are misperceptions about the premises, protocol and processes upon which the industry functions.

This knowledge gap results in some regulations that do little more than add a layer of compliance for the sake of compliance.

Targeting pre-foreclosure activity
Property preservation companies provide a wide range of services intended to maintain a vacant property from the onset of vacancy until it becomes reoccupied by the current borrower or occupied by a new owner after a foreclosure.

Maintaining the external appearance of a vacant property tends to be non-controversial. Tensions arise out of the servicer’s right to enter, protect and preserve a vacant property prior to foreclosure-known as “securing” the property-and the servicer’s repossession of the property after foreclosure. Servicers rely on field services companies to assist with both phases.

As evidenced by recent proposed and enacted statutes, regulators aim to protect consumers during these phases, which all can agree are difficult and unpredictable periods for borrowers. Some regulations, however, fail to leverage protective procedures that are already an integral part of the industry’s procedures, or introduce requirements that do little to improve the borrower’s position but hamper preservation, thereby increasing the blight risk. 

Generally, the servicer’s right to secure a property prior to foreclosure is contractually granted pursuant to the mortgage agreement-a right generally triggered when a property is in default and vacant, and which allows the servicer to protect its collateral interest.

Servicers rely on property preservation companies to perform occupancy inspections to determine whether a defaulted property is vacant. Occupancy determinations are made at a single point in time, largely because investor guidelines require that a property be secured within a short time frame after it is declared vacant, to protect the property from damage.

Recent regulatory trends aimed at protecting both borrowers and neighborhoods, however, seek to elongate the vacancy determination decision period to a span of time as opposed to a point in time.

For example, proposed New York S.B. 7350, which gained no traction in 2014 but is expected to be re-proposed this year-defines default as at least three missed monthly payments, stretching the current standard; and requires a vacancy determination to be supported by three separate inspections, at different times of the day, over a two-month period. That essentially would double the current time period that a vacant property is left unprotected, subjecting the property and the surrounding neighborhood to blight and peril.

Property preservation industry controls-established long before the mortgage crisis-already employ occupant protective measures without contradicting investor guidelines and compromising properties. Perhaps a more beneficial undertaking is for all contingents to endorse a universal vacancy definition. The property preservation industry, with its decades of experience, would eagerly provide sound input for a sturdy foundation.  

Other statutes aimed at protecting borrowers during the pre-foreclosure period specifically focus on the securing process, but not every statute accurately grasps the methods by which the securing process is implemented.

A golden rule for property preservation companies is to never remove personal property during pre-foreclosure services, absent an imminent health or safety risk. Yet a recently enacted Maine statute requires property preservation companies, through their in-state contractor network that performs the services, to provide a detailed inventory of the personal property, excluding hazardous materials, removed during pre-foreclosure services. That inventory list should be blank every time.

The statute also requires each property preservation contractor to license its company as a debt collector. The statute is premised on the misperception that the property preservation company is repossessing the property when, in fact, the securing process is completely distinct from debt collection and intended solely to provide access to a property to protect it from peril, with no intent to lock an occupant out or repossess the property.

The true intent of the statute is to gather a registry of property preservation contractors performing work in the state, and to hold each accountable for its own acts. However, that goal would be easily accomplished through a simple registry in coordination with the property preservation companies that hire contractors.          

Anti-blight initiatives
Statutes aimed at maintaining the external appearance of a vacant property are generally non-controversial due to the common desire to keep neighborhoods free from blight and the dangers that often accompany vacant and ill-maintained defaulted properties. Yet some statutes contain mandates counterintuitive to the workings of the property preservation industry.

S.B. 7350 requires the foreclosing entity to maintain vacant properties to certain standards prior to foreclosure and before having possession of the property. Many of the standards align well with the typical services provided by property preservation companies, such as ensuring that the property is secure, free from blight and absent rodents and hazards. However, many of the standards go well beyond what can be and should be performed by an entity that has yet to take lawful possession of the property. These include repairing sidewalks and driveways; ensuring that the property and its stairways, decks, porches and balconies are structurally sound, with property anchorage and proper loads; and ensuring that doors and windows are weather-tight.

Setting aside the impracticality of having property preservation companies opine on architectural standards, imposing such mandates on the servicer while the borrower is still in lawful possession of the property, and when the servicer may have no legal right to access the property or limited rights to maintain it, subjects both the servicer and its property preservation agents to legal action.

The good intentions of the bill are overshadowed by the risky and burdensome load the legislation puts on the servicer. A deeper look into the longstanding property preservation standards would demonstrate that the core goal of property maintenance is already being achieved.

New Jersey enacted a similar statute (enacted and effective on August 15, 2014) to provide for and “regulate the care, maintenance, security and upkeep of the exterior of vacant and abandoned properties on which a summons and complaint in an action to foreclose has been filed.” As with proposed S.B. 7350, the requirements are triggered by the filing of the foreclosure action, prior to the servicer having legal possession of the property.

The New Jersey statute requires the servicer to provide contact information for an agent who will accept service of process for complaints of property maintenance and code violations. That agent, logically, is the in-state law firm handling the foreclosure.

The statute also requires contact information for an agent responsible for the maintenance and upkeep of the property. That agent, logically, is the servicer’s property preservation company. However, the unclear language in the statute has caused some servicers to believe that the “in-state” property preservation designee is not the company, but rather a singly named independent contractor. That would be a completely impractical approach, as no single contractor typically covers preservation for the entire state of New Jersey.

The clear objective of the statute is to provide quick notice of a violation to the property preservation company for expedient remediation, an objective best achieved by submitting the violation notice straight to the property preservation company’s code compliance department, regardless of what state that department physically resides in. That would enable the property preservation company to quickly dispatch the independent contractor who services the territory where the affected property is located. Any other solution delays the statute’s rapid-response intent and anti-blight objective, which, incidentally, is the same overarching objective shared by the property preservation industry. 

The foreclosure spectrum
Consumer protection post-foreclosure remains a high priority for regulators, and many statutes focus on protecting former borrowers during the difficult time of relocating and, in some cases, eviction. On the other hand, a servicer’s heightened obligations with respect to maintaining foreclosed properties are triggered almost immediately upon foreclosure.

In 2014, Michigan enacted legislation that took effect on June 19, 2014, which acknowledges the competing challenge of balancing the servicer’s and borrowers’ interests during a post-foreclosure redemption period, and clarifies the rights of both parties during that period. Implicit in the statute is the servicer’s right to inspect the property during the redemption period, subject to advance notice of the inspection to the former borrower, and his or her right to be present.

While the intent of the statute is understandable, the broad scope of its language creates reluctance to conduct redemption services for fear of non-compliance. Questions concerning whether any entry into the property constitutes an inspection, whether the statue applies to vacant properties and what constitutes notice to the former borrower have caused some servicers to do nothing and let the redemption period pass, for fear of non-compliance and in hopes that guidance, either informal or formal, develops.

Such reticence may have an adverse effect on vacant properties, and eventually neighborhoods. There is a wealth of knowledge and experience in the property preservation industry regarding post-foreclosure procedures and occupancy statistics-data that would be useful in drafting statutes of this nature to ensure that the common goals and protections intended by the statute are achieved upon enactment.

In contrast, the push to move vacant properties expediently through the foreclosure process to counter growing neighborhood blight due to lengthy foreclosures processes has resulted in the proposal or enactment of expedited foreclosure bills across the country. These measures also are referred to as “fast-track foreclosure” bills.

The intent is sound, as only vacant and abandoned properties qualify for fast-tracking, and the burden of proof is on the servicer to prove the required evidence of abandonment. To do so, many states offer model affidavits, but many of the affidavits are cumbersome to complete because the affidavit requires a single affiant, typically the property preservation agent, to attest to a battery of conditions.

The checklist of conditions assumes that the property preservation contractor making the abandonment determination based on physical point-in-time attributes, such as broken windows, accumulated trash and mail, an unkempt yard, and the like, is also able to attest to the presence or absence of conditions pertaining solely to the borrower’s status with regard to the underlying loan. And that is not an attestation a property preservation contractor can make.

The end result is cobbling together an affidavit, piecemeal, from different agents for the servicer to constitute a single required affidavit, which may not pass muster for the judge expecting more streamlined evidence.

Those with heightened familiarity with the property preservation industry could be instrumental in crafting model documents that apportion the responsibility for attestation to appropriate parties.

Leveraging industry knowledge
Perhaps a call for cooperation is in order. Perhaps it is time for the property preservation industry-no longer completely under the radar-to be invited to speak, or to raise its hand and ask to weigh in. Or perhaps the massive banking industry along with the investor community could encourage regulators to leverage the preservation industry’s collective knowledge before proposing regulations. 

Such an approach could help ensure that targeted regulations hit their mark–protecting consumers and communities alike. After all, that is the core tenet of the property preservation industry. It is what the industry was founded on or, simply put, its foundation.

Linda Erkkila is general counsel for Valley View, Ohio-based Safeguard Properties, the largest field services company in the United States. For more information on Safeguard Properties, visit www.safeguardproperties.com.

Please click here to view Let’s Work Together [pdf].

About Safeguard 
Safeguard Properties is the mortgage field services industry leader, preserving vacant and foreclosed properties across the U.S., Puerto Rico, Virgin Islands and Guam. Founded in 1990 by Robert Klein and headquartered in Cleveland, Ohio, Safeguard provides the highest quality service to our clients by leveraging innovative technologies and proactively developing industry best practices and quality control procedures. Consistent with Safeguard’s values and mission, we are an active supporter of hundreds of charitable efforts across the country. Annually, Safeguard gives back to communities in partnership with our employees, vendors and clients. We also are dedicated to working with community leaders and officials to eliminate blight and stabilize neighborhoods. Safeguard is dedicated to preserving today and protecting tomorrow.  Website: www.safeguardproperties.com.

Darren Kruk Discusses the Necessity of Cyber-Security

Posted on by Safeguard

The April issue of DS News featured an article by Safeguard Properties Information Security Officer Darren Kruk titled A Measure of Security.

A MEASURE OF SECURITY
With cyber-attacks looming as a real and ever-present threat, the mortgage services industry must instill security measures at every level of its everyday business.

One of the fastest-growing and fastest-changing professions is that of the security professional. In today’s world, a security professional manages more than a business’s physical and employee security. These professionals must be versed in information risk management, governance, compliance, IT processes, and increasingly possess depth of knowledge regarding cyber-security. The repercussions of cyber-attacks and the global nature of these threats have the potential to impact all industries, including the mortgage services industry. And cyber-attacks are unfortunately becoming the new business norm as such advances in technology, as mobile, cloud services, IP enabled workplaces, and social networking are adding to the layers of systems that need vigilant monitoring.

Although the core function of information security applies to all businesses, each industry has its own unique requirements and guidelines, in addition to the requirements and guidelines specific to the regulatory entities that oversee it. Mortgage companies and their field services partners fall under the information security regulatory requirements and guidelines of the Consumer Financial Protection Bureau (CFPB) and the Gramm-Leach-Bliley Act.

Almost every day there is a new report of a company that has fallen victim to a malicious cyber-attack, and these attacks are becoming increasingly more sophisticated. Recently, a large health care provider discovered it was the victim of a sophisticated hack, which affected not only its employees, but also more than 80 million accounts that were liberated from the company’s databases. This breach, unlike the numerous others this past year, obtained personal identity data instead of payment card data seen in many of the recent retailer attacks.

How do businesses protect themselves from today’s ever-changing environment, and more importantly, how does an information security professional know whether the proper controls have been implemented and if the controls in place are sufficient?

KNOWING YOUR ASSETS
There are standard formulas that must be followed that apply the basic security management protocols, such as access control lists, secure firewalls, Intrusion Prevention Systems, segmentation, logging, and monitoring. But these are the mechanics of prevention. To fully understand the depth of a highly dynamic and complex information system, the information security team needs to first understand why they would be a target of a cyber-attack in the first place; what do they have that would attract a hacker? To understand this, the information security team needs to think like a hacker and take a hacker-centric approach to security. What are the points of interest? For most hackers their interest lies in a company’s data and/or systems.

To understand what might be of value, a complete asset inventory is necessary. An asset, for example, can include such devices as computers, tablets, and smartphones. An asset can also include data and a company’s physical operating system. Why would a hacker be interested in a system? Hackers are always looking to launch a hack from a better platform. A company may have minimal data, but their platform may entice a hacker.

Mobile technology is one of the biggest competitive advantages for many customer-facing businesses. Whether your customers are consumers or other businesses, being able to harness the power of mobile technology has become a game changer. For several years mortgage field services companies have been investing millions of dollars annually in mobile technology and applications to better meet growing client needs, as well as the needs of their inspectors and vendors.

Although field services companies cannot dictate which devices inspectors and vendors use to complete their assigned work in the field, they can require the use of only pre-approved, closed community applications that have been properly vetted and inventoried. Why is this important? We live in an interconnected world where business and personal time often overlap. One minute a tablet or smartphone could be used for work purposes, the next minute to send a personal email or access an external webpage. Without the proper controls in place, these devices can become a goldmine of information to exploit.

Millions of points of data are generated each and every day, but not all data is created equally. To fully track this data, it is vitally important to clearly define the classification, or rank, of each data element and create a matrix that qualifies where each data element resides. This is important because the level of protection provided is controlled by the predetermined ranking of the data element, as well as the level of risk the information poses if exposed. It is equally important to classify and track all data that is shared externally. For example, confidential information, such as loan numbers, are ranked the highest and require SSL encryption to the end point.

INTEGRATING INFORMATION SECURITY WITH BUSINESS
Information security should be a welcome partner with the business functions of any organization. As such, it should be baked into business decisions from the onset. Do not think of it as just another cost of doing business, but rather a business initiative that provides service improvement and savings. For example, by keeping anti-virus software up-to-date, new vulnerabilities will be addressed through routine security patches that “plug the holes.” For mobile devices, this is especially true as new software versions and applications are continually introduced.

To be successful, information security should be an integral part of any organization’s business culture. This integration starts at the top with executive ownership and support. Executive buy-in will help ensure the success of such internal undertakings as security and compliance advisory boards.

These boards can provide continuity of knowledge, leadership, executive oversight, and guidance for security and compliance policies and activities, and ensure ethical behavior within the organization.

RISK-BASED MODELING
Taking a risk-based, or threat-modeling, approach to information security is important to effectively assess risk exposure and to determine how to best balance risk with action. Once the types of systems and data that exist have been classified, they can be rated according to their acceptable risk and threat levels. Risk-based modeling identifies the data and quantifies the risk of exposure, and the potential risk to stakeholders should it be exposed.

Risks to your applications and systems need to be included in the risk-based modeling exercise as well. This includes email, file transfer systems, and storage systems that are susceptible to data loss. Email is such a universally used tool in daily business and personal interactions that it has gotten to the point where it has become innocuous. Not many think to take into consideration the risks associated with something as simple as sending an email with a file attached to a non-company system. However, one must consider how that data is transferred or stored on the other side. It might not be a risk worth taking.

CREATING A SECURITY-CENTRIC CULTURE
Building a holistic security culture is probably the hardest thing to do in a nonsecurity based company. Our world has been forever changed by social media and its integration into daily life. The challenge is a common one in today’s world—how do we change behavior to maintain privacy and to protect what is important in this oversharing, ever-communicating cyber world? Next generation employees grew up with a cell phone in their hands, constantly tied to social media and their network of friends. They believe in sharing with one another everything from “selfies,” to pictures of food, music, and even personal passwords to feel connected to the world. It has become a challenge for businesses to instill the exact opposite mentality—that nothing should be shared unless absolutely necessary.

Education and continuous information security awareness programs are key. Field services companies must not only educate their employees on physical and data security best practices, but they also must monitor and track this education to ensure global compliance and understanding. To ensure compliance in the field, inspector and vendor networks must be educated on these same industry best practices.

Ongoing information security education for everyone who has access to sensitive information is critical to ensure daily compliance with all information security protocols and applicable industry guidelines and requirements.

Routine monitoring and auditing of vendor networks can help identify gaps that need to be addressed and certify that anyone who has access to confidential information knows and practices the appropriate steps to protect it.

TESTING AND AUDITING
Testing and auditing can be the most important part of measuring your data security controls. And, with the renewed focus and investment on vendor oversight within the financial services industry; internal, external and, vendor network testing and auditing have become commonplace.

Regularly scheduled internal audits not only gauge the effectiveness of a data security strategy but can also point out areas of improvement and should be looked upon favorably. Field services companies typically receive and utilize confidential consumer data, and it is imperative that the security controls safeguarding this data are robust and comprehensive.

External audits should be viewed similarly. As regulations within the financial services industry continue to expand, ongoing thirdparty vendor audits have become routine. Part of this audit consists of an information security assessment in which a review of such protocols as physical security, application permission and authority levels, data integrity and protection (encryption), and network vulnerability are tested.

Much like the financial services industry, some field services companies have taken the audit process to the next level by implementing routine, on-site vendor audits as part of the overall audit protocol. A portion of this audit focuses on a vendor’s data security compliance and frameworks. Routine monitoring and auditing of vendor networks can help identify security gaps so that anyone who has access to confidential information knows and practices the appropriate steps to protect it.

GAUGING SECURITY SUCCESS
Is there a measuring stick with which to gauge data security success? Some claim the ultimate measuring stick is not having been a victim of a cyber-attack. Unfortunately, that is a naive view of the information security world. A company cannot and should not claim success merely because it has not been the victim of a cyber-attack. The overall measure of a company’s security framework is an amalgam of many different control principles. The field services industry has embraced and invested in the people and technology to meet the information security requirements head-on. It is one more way to strengthen the industry and provide clients with the security needed in this interconnected electronic business environment.

Please click here to view A Measure of Security [pdf].

About Safeguard 
Safeguard Properties is the mortgage field services industry leader, preserving vacant and foreclosed properties across the U.S., Puerto Rico, Virgin Islands and Guam. Founded in 1990 by Robert Klein and headquartered in Cleveland, Ohio, Safeguard provides the highest quality service to our clients by leveraging innovative technologies and proactively developing industry best practices and quality control procedures. Consistent with Safeguard’s values and mission, we are an active supporter of hundreds of charitable efforts across the country. Annually, Safeguard gives back to communities in partnership with our employees, vendors and clients. We also are dedicated to working with community leaders and officials to eliminate blight and stabilize neighborhoods. Safeguard is dedicated to preserving today and protecting tomorrow.  Website: www.safeguardproperties.com.

Wendy Anderson Talks Fast-Track Legislation

Posted on by Safeguard

The March USFN e-Update featured an article authored by Safeguard Properties Attorney Wendy Anderson titled Fast-Track Legislation Resource Center.

Fast-Track Legislation Resource Center

Safeguard Properties recently introduced a Fast-Track Legislation Resource Center to monitor state-by-state legislation related to expediting foreclosure procedures for vacant and abandoned properties that are languishing in the process, exposing those homes to additional risks. The easy-to-navigate, interactive map tool provides industry professionals with a resource to stay abreast of the latest fast-track legislation, along with links to applicable media coverage.

Fast-track legislation has the potential to help rebuild communities by establishing a standard definition for an abandoned property in each state, as Illinois and New Jersey did when they enacted foreclosure fast-track laws in the past two years. Determining proper candidates for expedited foreclosure is a critical component to fast-track legislation and addresses one of the biggest challenges that the mortgage industry faces when properties go into default: which of the approximately 18 million vacant properties in the U.S. are “abandoned”? The ability to more clearly identify abandoned properties can offer important guidance, as well as help to mitigate risk for the mortgage industry and their field service partners, tasked with protecting and maintaining those properties as they proceed through foreclosure.

Because the process of rebuilding can only start after an abandoned property moves through foreclosure and into new hands, accelerating the process offers lawmakers and business leaders an effective means to ultimately revitalize struggling neighborhoods, stem blight, stop the out-migration of residents, and uphold property values.

For assistance in staying on top of recent developments in fast-track legislation, explore the new Fast-Track Legislation Resource Center. Further, as a starting point for state legislators and policy makers, the Mortgage Bankers Association’s Vacant and Abandoned Property Working Group and the New York MBA have compiled “Principles to Expedite the Foreclosure Process for Vacant and Abandoned Properties.” Additionally, the Ohio MBA version can be viewed here.

Please click here to view Fast-Track Legislation Resource Center online.

About Safeguard 
Safeguard Properties is the mortgage field services industry leader, preserving vacant and foreclosed properties across the U.S., Puerto Rico, Virgin Islands and Guam. Founded in 1990 by Robert Klein and headquartered in Cleveland, Ohio, Safeguard provides the highest quality service to our clients by leveraging innovative technologies and proactively developing industry best practices and quality control procedures. Consistent with Safeguard’s values and mission, we are an active supporter of hundreds of charitable efforts across the country. Annually, Safeguard gives back to communities in partnership with our employees, vendors and clients. We also are dedicated to working with community leaders and officials to eliminate blight and stabilize neighborhoods. Safeguard is dedicated to preserving today and protecting tomorrow.  Website: www.safeguardproperties.com.

Kellie Chambers on Meeting the Regulatory Challenge

Posted on by Safeguard

The March issue of Servicing Management featured an article by Safeguard Properties Assistant Vice President of Investor Relations Kellie Chambers titled Meeting The Regulatory Challenge. 

Meeting The Regulatory Challenge

How the new mortgage rules have resulted in unintended consequences for field services companies.

For some time, the mortgage industry has been buzzing about the overwhelming number of new regulations that it now must face. Regulators and government officials on the national, state and municipal levels have proposed and enacted legislation aimed at protecting borrowers and consumers in the wake of the recent recession, hoping that they never have to endure a crisis of that magnitude again.

Although these regulators and government officials have good intentions in passing these laws, some include language and stipulations that, in the mortgage industry, may hinder the day-to-day work that mortgage servicers and their field services partners complete in the field.

Managing some of these new regulations can become cumbersome for field services companies, but each one can serve as an opportunity to foster partnerships, educate the officials enacting the new laws and establish industry best practices. Where the rapid increase in the frequency of these regulations has become a challenge, the field services industry must provide solutions. Let’s take a close look at each of these challenges and explore some possible solutions
 
Challenge: Regulations cause delays in preservation services
Many new regulations and laws are aimed at protecting the borrower or consumer, but often those entrusted to write and enact these rules are not fully familiar with the role that field services companies play in the mortgage industry. This lack of knowledge and limited understanding of the full scope of work performed in the field can lead to legislation that can potentially harm the consumer or surrounding community.

For example, in Maryland, when a home is deemed vacant by a field services company, the state requires a 15-day posting period prior to the initiation of any preservation work. What this means is that the property must remain unattended for 15 days before field services companies can perform work to keep it from deteriorating or to mitigate any damages.

Specifically, delays in property preservation services in colder months greatly increase the risk of major damages, such as those that result from frozen and burst pipes. These additional – and completely preventable – issues result in increased preservation costs for the servicer and investor.

Another example is Michigan’s requirement that servicers coordinate interior inspections with borrowers during the redemption period after the foreclosure sale in order to allow the borrower to be present during the inspection. If borrowers are uncooperative or unresponsive, delays in maintaining properties are greatly increased. If the borrower abandoned the home, the odds that the servicer will have a difficult time contacting the borrower to set up the interior inspection are greatly increased. Again, the property continues to remain vacant and unattended, potentially causing the cost of preserving and protecting the home to increase.
 
Solution: Forge partnerships
Field services companies and officials need to come together on the local, state and federal levels to ensure both consumers and vacant properties are protected. There are concerns from both sides of the spectrum on how to juggle appropriate consumer outreach and property preservation timeliness, but a constructive and consistent dialogue does not exist. Field services providers can begin by opening up lines of communication and providing their expert recommendations as they partner with investors and communities to craft a uniform approach that meets the needs of all parties involved.
 
Challenge: Increasing property registration legislation/bond requirements
Property registrations present a challenge for national field services companies that manage properties on behalf of their servicing clients. Currently, there are thousands of property registration requirements across the country, with more being enacted each day.

As more and more ordinances are passed or current ones are revised, it becomes increasingly difficult to manage property preservation business, as each ordinance is unique to the city for which it was created. No two are alike – each has different registration fees and unique policies and procedures for submitting the proper registration forms, in addition to the widely differing city websites where this information is housed.

Even more challenging are the ordinances that have been enacted without a clear understanding of industry terminology and the work that field services companies do in the field every day. Regulations often contain vague language that try to use industry terms but misinterpret them.

For example, the word “default,” within the mortgage industry, means the borrower is 45 to 60 days past due on their loan; however, municipalities have interpreted “default” to mean several different stages of the foreclosure process – on day one of delinquency, on day 45 to 60, or at lis pendens, when foreclosure proceedings begin.

If an ordinance defines “default” as the first day a loan is late, and field services companies register it on behalf of their servicing clients, it is very likely that the borrower will have paid the loan payment by day two or day three. The field services company will have just spent hundreds of dollars in fees and human hours registering this property.

Another challenge for servicers and their field services partners is that ordinances are not consistent. Each asks for different fees, signage, maintenance, inspection frequencies, and types of forms and information they require. With thousands of different requirements, it is challenging for national field services companies to keep up. Additionally, it has been challenging to determine what jurisdictions and/or ZIP codes that are covered under a property registration ordinance, as the city itself is somewhat vague as to the scope of the legislation.

The most challenging trend in municipal ordinances is the cash bonds associated with property registrations. Cities in Ohio, such as Youngstown and Toledo, require a $10,000 cash bond when filing a vacant property registration. If the property is not maintained or code issues occur, the city uses a portion of that bond money to cover the costs to fix the issue. They also tack on additional processing fees. Any money not used by the city is returned once the property completes the foreclosure process.

In a city like Youngstown, which was greatly impacted by the recent housing crisis and is struggling to revitalize, servicers can have hundreds of vacant and abandoned properties.
 
Solution: Uniformity for local property registrations and ordinances
Municipalities often enact property registrations, ordinances and bond requirements as a way to protect their communities from vandalism and blight; however, what they do not fully realize, in the case of properties with defaulted loans or those real estate owned properties, is that mortgage servicers employ field services companies to maintain them on a regular basis.

Often, the ordinances overlap or contradict the work field services companies perform. Bonds, as part of property registrations, especially, are unnecessary for properties under the care of field services providers. Work is completed regularly on those properties to mitigate deterioration and potential code violations.

What is necessary is more uniformity among ordinances and property registrations that are geared toward a common definition of vacant and abandoned homes. Field services companies and municipalities need to partner to establish a common set of rules and regulations to ensure ordinance compliance and, also, that these rules can serve as a tool to protect consumers, neighborhoods and communities.
 
Challenge: Local point of contact requirements
New Jersey recently passed a bill requiring that field services companies provide the state with a single, local point of contact in case any issues arise at properties in that state. The contact is required to have an address within the state.

For a national company, such as ours, the challenge lies in having multiple vendors in each state. In addition, a property might have several different vendor companies, including those that do specialty work, that are tasked with maintaining certain aspects of the property. In a state like New Jersey, with thousands of properties in some level of default, it is difficult to choose one local vendor to manage all of these properties in order to comply with the requirement.

Additionally, having a single point of contact delays the preservation process because approvals to fix property issues identified by local officials need to go through an additional layer – the local contact – before they can be escalated up the chain to resolve damages or other issues.
 
Solution: Engage local officials and state mortgage banking associations
Municipalities need to understand that businesses do not have to be local to promptly address any property issues. National field services companies, like Safeguard, have been in business for many years and employ thousands of vendors to maintain millions of properties across the country. They rely on their vendor partners to know local laws and ordinances and abide by them.

Rather than requiring a local address, field services companies should reach out to local officials and make them aware of the work they do to protect properties in their communities. Many field services companies, including ours, have dedicated staff who travel across the country to educate officials and foster dialogue on the local level. Engaging state mortgage banking associations and state officials is the next step.
 
Challenge: Unnecessary vendor licensing
Field services inspectors and vendors in the field have incurred additional costs due to new regulations. New licensing requirements can be unnecessary because they do not relate to the work field services vendors complete for the mortgage industry. These licensing requirements also increase the cost of doing business for these small businesses and do not truly provide any benefit to the state or consumer.

For example, in some states, all field services inspectors are required to have a residential home inspector’s license. This is an unnecessary cost. A field services inspector’s primary responsibility is to determine whether a property is vacant and to check the condition of that property.

Also, Maine requires that field services vendors are licensed as debt collectors, even though that is not part of their job duties. The vendors have no information on the mortgage loan, nor any instructions to try to collect a debt.
 
Solution: Set national licensing standards
Through industry and government partnerships, field services companies need to encourage officials to create a nationwide standard for the certification of vendors and to participate in its development.

This will help ensure that there is an understanding of what services an inspector or preservation vendor provides and will align certification requirements to the work field services vendors complete.
 
How benefits arise from challenges
The new regulations and laws are not completely negative for field services companies. They require companies to take additional measures to ensure their mortgage servicing clients remain in compliance.

Our firm, for example, is investing in new technologies, and new regulations encourage further innovation in that regard, including automating systems to ensure the highest level of quality for the company’s servicing clients. It also includes additional controls for its vendors in the field by using geolocation technology and smart scripts in the company’s proprietary mobile applications. The results are improved quality and efficiencies for our company, its vendors and clients.

Additionally, field services companies are increasingly participating in both annual and periodic audits with clients, largely as a result of regulations now requiring increased monitoring of service providers. Audits are commonly performed at the field servicer’s office and cover an intense examination of every service, system and process.

These audits are beneficial to the field services provider – we use them as a way to partner with their clients to identify areas for improvement. The company also conducts its own internal audits to ensure it is meeting its clients’ expectations prior to their requests for information, and the company also conducts audits on its vendors to ensure quality and efficiency.

The biggest challenge with these new regulations and laws, other than the volume and frequency, is the misinterpretation or lack of understanding when it comes to the field services industry. National companies make it a priority to educate officials on the work they do in the field every day, but more can and needs to be done.
 
All can agree that there is a need to protect consumers and ensure the housing industry remains stable via new regulations, but new regulations come with hidden costs and future consequences that may be unknown at the time.

To ensure the proper understanding of the field services industry and alleviate extreme delays in preservation services or unnecessary expenses to all parties involved, it is important that field services providers forge partnerships with regulators and government officials. This level of engagement will help officials understand the goals of property preservation and the need for uniformity and national standards.

Kellie Chambers is the assistant vice president of investor relations for Safeguard Properties. She can be reached at kellie.chambers@safeguardproperties

Please click here to view Meeting The Regulatory Challenge online.

About Safeguard 
Safeguard Properties is the mortgage field services industry leader, preserving vacant and foreclosed properties across the U.S., Puerto Rico, Virgin Islands and Guam. Founded in 1990 by Robert Klein and headquartered in Cleveland, Ohio, Safeguard provides the highest quality service to our clients by leveraging innovative technologies and proactively developing industry best practices and quality control procedures. Consistent with Safeguard’s values and mission, we are an active supporter of hundreds of charitable efforts across the country. Annually, Safeguard gives back to communities in partnership with our employees, vendors and clients. We also are dedicated to working with community leaders and officials to eliminate blight and stabilize neighborhoods. Safeguard is dedicated to preserving today and protecting tomorrow.  Website: www.safeguardproperties.com.

George Mehok and Rick Moran Weigh in on the Next Generation of Field Services

Posted on by Safeguard

The March issue of MReport featured an article written by Safeguard Properties Chief Information Officer George Mehok and Assistant Vice President of Application Architecture Rick Moran titled The Next Generation of Field Services.

The Next Generation of Field Services

The Industry Continues To Evolve As New Technology Emerges, Regulations Heighten

When the first digital electronic programmable computers were introduced more than 70 years ago, they relied on vacuum tube technology, the lowest level programming language, and could only solve one problem at a time. They were huge machines, often filling entire rooms, and were expensive to operate. They were also prone to overheating, causing them to frequently malfunction. As technology advanced, four more generations of computers emerged, including artificial intelligence technologies being groomed for future use.

With each generation, computers advanced from the use of vacuum tubes to transistors, integrated circuits to the present-day microprocessors. The machines themselves decreased in size significantly enough to fit in home offices and—with mobile devices—even the palm of one’s hand. And what now fits in our hand can process more than the computers that once filled an entire room.

Just as the computer has evolved with each generation and advance in technology, so has the field services industry. Vendors completing work in the field have progressed from using pencils and paper, taking Polaroid photos, and faxing field results that took hours–and sometimes days–to process, to submitting property information and digital photos from the field in almost real-time using mobile devices and applications. This evolution has led to improvements in on-time performance, quality and an overall more efficient process from the field to the mortgage-servicing client. It also has sparked the next generation of field services as companies within the industry continuously upgrade to new technologies for both internal and external uses.

Internal Systems Updates

Similar to computer and mobile technologies, companies are consistently re-evaluating and updating internal operations systems. What worked even a few years ago can be improved upon with new technologies emerging every day. Technology has sped up the pace of business and field services companies’ internal systems need to remain in line with the latest technologies to be able to process the millions of points of data gathered daily about properties they maintain on behalf of their servicing clients across the country. With the advances in mobile technology, and its ability to transfer information in near real-time, internal field services employees need to have the tools to process and analyze field results quickly and accurately. And as mobile technologies and devices continue to change the face of the field services industry, those companies’ internal systems must take advantage of the efficiencies and quality that mobile has to offer.

Recently, Safeguard Properties, the largest field services company in the U.S., completed the first phase of replacing its core, internal field service system. The new, state-of-the-art system, named SPIGlass, integrates all internal, client and vendor systems to display field results, photos, and updates in one central workflow system. Property information and history are easily reviewed and recorded in this updated system.

Safeguard focused the first release of this new system on one of the most important functions within its operations–property damage assessment. When vendors submit their work order results, that damage data is automatically separated and stored in the SPIGlass system. Employees receiving those results are then able to identify and review damages and property history more efficiently without having to toggle between multiple systems.

Additionally, photos are displayed by category, side-by-side, so they can easily make apples-to-apples comparisons of any damages to help determine if the issue is worsening.

The design of the system also improves quality and accuracy by standardizing the process of auditing damages. Employees are prompted with a script of questions they must answer when reviewing a property, creating a more robust tracking system. The information that is displayed represents the entire loan history related to damages, including when the condition was reported, the level of severity, and when steps were taken to resolve the damage.

Mortgage servicing clients benefit from field services companies’ internal system upgrades, like SPIGlass. They can access information more efficiently and with confidence that the results are quality checked and accurate. The entire history of the property is at their fingertips making it easier to pull reports and make more informed business decisions on the maintenance of each of the properties in their portfolios.

Mobile Generation

As the field services industry cycles through its own generations of technology, mobile has been one of the biggest game changers for improving quality and efficiency of results from the field. This is especially important to servicers who face heightened scrutiny from regulators and who need to make critical decisions on preserving their assets or properties in their portfolios.

With mobile devices and applications, results from the field can be delivered and quality checked in a fraction of the time it used to take vendors and field services employees. As that information comes in at a faster pace, the next generation of field services must be able to guarantee the quality and accuracy.

Photos are key to the field services industry. They serve as the evidence in determining occupancy, property condition, and that work was completed properly and on-time. Field services companies need to validate their authenticity and protect the quality of the images that are submitted to them and subsequently submitted to servicing clients. Mobile devices and applications are the key to compliance and are used by vendors in the field services industry to capture a rich set of information each time a photo is taken. Using that information can help field services companies weed out potential duplicate photos, ensure those photos were taken within the proper work-order timeframe, and confirm they were taken at the correct location.

Because photos help create a timeline or story at each property, it is important that they are used to paint an accurate picture. Having the ability to identify and mitigate the potential for duplicate photo submissions is critical for field services companies. Often these duplications are a result of human error, and can be detrimental to preserving the integrity of a property.

To eliminate the possibility of duplicate photos, field services companies can rely on the information—or metadata—captured by the mobile device or app. This information can be used to build an index of all of the photos already submitted. If a vendor erroneously tries to upload an image through his or her mobile device that is already in the system, he or she is notified and the image is rejected. To move on with submitting the field results, the vendor must submit a different photo. This helps protect field services companies and their servicing clients from duplicate images being used across orders and ensures the work was completed by the vendor.

Equally as detrimental is the potential submission of photos taken for previous work orders. For example, a vendor may take hundreds of photos during one visit, but only submit half with the field results. When he or she has to go back to the property for subsequent orders, those “leftover” images cannot be uploaded on new orders because of date and time stamps built into the mobile device or apps. The vendor also cannot submit photos that were taken with the date and time stamp feature turned off.

One of the most recent advances in technology for the field services industry is capturing geolocation data—longitude and latitude coordinates—attached to photos submitted through mobile devices. If these coordinates do not match established GPS data of the property, the image is either rejected immediately or flagged for internal review. This is a critical advancement for field services companies and servicers in ensuring vendors are at the correct property.

Safeguard conducts regular audits on its field results and photos, including determining the accuracy of the geolocation data gathered by its vendors in the field. It also uses this data in its new internal system to map the exact location each photo was taken at a property. Servicing clients also ask for this information when conducting audits on the company.

The goal of these multiple layers of quality checkpoints is to get immediate validation that the vendor is at the right location and submitting accurate information and photos, rather than reviewing the information after the vendor has left the property. This saves time for both the vendor and the field servicer because issues are resolved immediately, additional trips are not necessary, and the field servicer can be confident in the information it receives.

Future of Field Services

Video technology is the future of field services. While there are some hurdles such as inconsistent cellular networks, mobile device limitations, and servicer compatibility issues, field services companies like Safeguard have begun testing its use in the field. The possibilities seem endless. Imagine vendors being able to show the full extent of damages in the field and receiving approvals in realtime while still at that property. Or having video proof that a property is in convey condition, and rather than calling into the field services company, the vendor can show the property’s condition through a live feed or streaming video. Although video probably will not replace the need for photos in field services, it certainly will enhance the quality of work completed in the field.

Like the evolution of the computer, field services companies need to constantly refine and improve their processes as new technologies emerge. Technology has propelled the industry from notepads and waiting days for field results to mobile devices transmitting near real-time information. But some of the most significant advances are the quality and accuracy of the information being submitted and processed. The future of field services will continue to be influenced by emerging technologies. The key is how those companies choose to put it to use. Investing in technology will be a huge differentiator in determining what companies remain successful in the field services industry.

George Mehok is the chief information officer and
Rick Moran is the assistant vice president of application
architecture for Safeguard Properties, the largest field
services company in the U.S.

Please click here to view The Next Generation of Field Services [pdf].

About Safeguard 
Safeguard Properties is the mortgage field services industry leader, preserving vacant and foreclosed properties across the U.S., Puerto Rico, Virgin Islands and Guam. Founded in 1990 by Robert Klein and headquartered in Cleveland, Ohio, Safeguard provides the highest quality service to our clients by leveraging innovative technologies and proactively developing industry best practices and quality control procedures. Consistent with Safeguard’s values and mission, we are an active supporter of hundreds of charitable efforts across the country. Annually, Safeguard gives back to communities in partnership with our employees, vendors and clients. We also are dedicated to working with community leaders and officials to eliminate blight and stabilize neighborhoods. Safeguard is dedicated to preserving today and protecting tomorrow.  Website: www.safeguardproperties.com.

Alan Jaffa Talks About What’s Next in Field Services

Posted on by Safeguard

The December issue of HousingWire featured an article by Safeguard Properties CEO Alan Jaffa titled What’s next in field services?

What’s next in field services?
Technology and ramped-up maintenance services top the list

Regulation and compliance — these words have been at the forefront of the mortgage industry in the past year or so. As we prepare to enter 2015, focusing on compliance and new and constantly changing regulations will remain the industry’s focus.  Servicers will continue to take measures ensuring that consumers are protected and neighborhoods are free of blight.  To do so, they rely heavily on their field services partners for assistance in maintaining compliance throughout the country.  Those field services companies, like Safeguard Properties, must remain prepared to invest in the future and adjust their processes to deliver that high level of services to their clients.

Technology

Technology is king when it comes to compliance.  I have often referred to Safeguard as not only a national field services business, but also a technology company.  We have made significant investments in things like video, mobile technology, and geolocation mapping to help keep up with new regulations and ensure the highest level of quality control for our servicing clients.

Video is the biggest and most exciting technology on the horizon for field services.  It will have a huge impact on the way defaulted and abandoned properties are maintained day-to-day.  Safeguard is piloting its use in 2015 to determine how to best utilize it and ensure our clients, investors and vendors also have the capabilities to manage these types of files.

The possibilities are endless as we get closer to managing properties in the field in real-time with live video feeds.  It will allow our vendors to video conference with us at Safeguard to get confirmation that they are at the correct property.  Damages will be able to be viewed more thoroughly through a video feed, and approvals for bids or repairs can come almost immediately, while the vendor is still onsite.

The use of video by our vendors also will allow us to better serve our clients by providing more up-to-the-minute data on their properties.  Other decisions can be made in real-time, helping to improve the maintenance of the vacant property, enhance quality controls and decrease the time it takes to relay the property information to the servicing client.

In 2015, mobile technology will continue to have a huge impact on the field services industry.  In the past few years, the use of mobile devices has changed the way field services companies do business.  Field services companies will continue to utilize the capabilities of these devices to build controls into their processes to ensure the work is done right the first time.

Geolocation technology is another game-changer for field services as it relates to mobile utilization.  When a vendor snaps a photo at a property using Safeguard’s proprietary photo application Photo Direct, the mobile device they are using will capture the longitude and latitude of where they are standing.  If that data is not within a few feet of the historical data we have on record for that property, a red flag is set off within the app alerting the vendor that they may not be at the correct location.  Photo Direct also records the date and time stamps for these photos.  All of this is fully integrated into Safeguard’s secured internal systems.

Ramped-Up Maintenance

Field services companies need to remain flexible and willing to adjust processes and procedures to help servicing clients remain in compliance with new and changing regulations.  Safeguard is at the forefront of the shift toward ensuring presale properties are maintained in “neighborhood-like” condition.  We are working with our clients to offer mulching, weeding, cosmetic trimming of shrubs, replacing gutters, power-washing the exterior of the home and other add-on services across the country.

The use of clear boarding rather than plywood or other materials that call attention to the vacant property is another shift we see continuing into 2015. Clear boarding has become a requirement from investors and will remain the best way to secure broken windows and doors and protect the integrity of the abandoned property, in addition to reducing blight in neighborhoods. 

Another big shift or trend in the coming year is the pre-conveyance inspection.  These inspections not only help us in field services to identify property issues and discrepancies prior to conveyance, but it will help servicers manage the costs involved when properties are reconveyed.

As we focus on 2015, field services and property preservation companies need to be the rock that their servicing clients can lean on as regulations continue to change.

We must focus on compliance, and the best ways to do so are through investments in innovative technologies and by adjusting the way we do business to ensure servicers receive the highest level of quality in the work we perform on their behalf.  Those words — regulation and compliance — will remain the industry’s focus well beyond 2015.

Please click here to view What’s next in field services? [pdf].

About Safeguard 
Safeguard Properties is the mortgage field services industry leader, preserving vacant and foreclosed properties across the U.S., Puerto Rico, Virgin Islands and Guam. Founded in 1990 by Robert Klein and headquartered in Cleveland, Ohio, Safeguard provides the highest quality service to our clients by leveraging innovative technologies and proactively developing industry best practices and quality control procedures. Consistent with Safeguard’s values and mission, we are an active supporter of hundreds of charitable efforts across the country. Annually, Safeguard gives back to communities in partnership with our employees, vendors and clients. We also are dedicated to working with community leaders and officials to eliminate blight and stabilize neighborhoods. Safeguard is dedicated to preserving today and protecting tomorrow.  Website: www.safeguardproperties.com.

Alan Jaffa Discusses the Future of Field Services

Posted on by Safeguard

The December issue of DS News featured an article by Safeguard Properties CEO Alan Jaffa titled Surveying the Field: The Future of Field Services. 

Surveying the Field: The Future of Field Services

Economists say that although the U.S. has come a long way since the recession a few years ago, we still have significant work to do for the economy to bounce back.  Speaking at this year’s National Property Preservation Conference in Washington, D.C. on November 5, Leonard Kiefer, Freddie Mac’s deputy chief economist, said that the housing market will play a big part in the country’s economic recovery.

Defaulted mortgage volumes are down, the market has seen significant gains, and housing prices are up 20 percent as the economy continues to improve, according to Kiefer.  He predicts that the overall U.S. economy will improve in 2015.

What is difficult to predict is how this new, highly scrutinized era in housing will impact the market in the coming year. Regulations and new legislation have been implemented quickly to ensure borrowers and communities are protected, but we are navigating unchartered waters as the industry tries to regain the trust from borrowers and manage these new directives created by investors and regulators. It is difficult to forecast, without a crystal ball and a little magic, what the future holds for mortgage servicers and the housing industry. What we can do in the field services industry is provide support and implement processes and controls to ensure compliance for our mortgage servicing clients.

As we prepare to enter the new year, the field services industry also is faced with new challenges, all of them centered on the heightened scrutiny from investors and regulators.  Servicers are taking a deeper dive into the operations and processes their field services partners utilize to stay in compliance with these new and expanding requirements.  As we enter the new era in housing, field services companies must stay ahead of the curve by focusing on compliance and quality control, utilizing new technology, ongoing internal training programs, and learning opportunities in vendor management.

NEW REGULATORY ENVIRONMENT LEADS TO INDUSTRY CHANGES

Local ordinances are a big theme in 2015.  Cities are getting more aggressive in passing and enforcing legislation and codes, and investors require that field services companies follow all of these local laws and ordinances.  National businesses are challenged to comply with the thousands of regulations across the country, even when they contradict some of the requirements from servicing clients and investors.

For example, one city ordinance requires field service vendors to use vegetable oil in the winterization process.  The city claims this needs to be done for environmental reasons; however, vendors are specifically instructed by our clients and investors to use antifreeze.  It’s a no-win situation.  Either method field servicers choose to utilize, they will be performing work that is out of compliance.

Bonds are another emerging trend in municipal regulation as cities try to cover the cost of maintaining abandoned properties.  Several cities across the country have implemented these bond ordinances, requiring servicers to pay up to $10,000 up front for each abandoned property in case any code issues arise.  If something needs addressed at the property, cities use some of that bond money to cover the cost of the work.  Once the property is sold, any leftover funds are returned to the servicer or bank minus an administrative fee that varies by city.  This is a great example of cities being unaware of the role of field servicing companies in maintaining these properties.  In 2015, field services companies will be challenged to continue outreach and education of municipal officials across the country.

On the state level, several have created regulations that specifically target property preservation rather than the servicers or banks.  For example, Maine recently passed legislation that requires field services vendors to be licensed as debt collectors.  Again, many of these regulations are created based in misperceptions of the field services industry. Developing a partnership and open dialogue with all levels of government is essential for field services companies to foster relationships and steer appropriate property preservation legislation.

As regulations continue to change, so does the servicing industry and scope of services. For example, field services companies want to see a shift toward servicing abandoned presale properties in “neighborhood-like” condition to help mitigate neighbor complaints and code violations.  This includes the possibility of mulching, weeding, and cosmetic trimming of shrubs, in addition to replacing gutters, power-washing the house, and mitigating other common code issues.

Another shift in field services toward the installation of clear boarding has already begun; however, in the next year or so, it will become more of a requirement.  Products like SecureView will be required for boarding broken windows and doors rather than using plywood or other materials that make the home stand out and cause blight in the neighborhood.

Pre-conveyance inspections are another industry change on the horizon.  These will help to significantly reduce reconveyance and other common presale property issues by identifying discrepancies prior to conveyance.  This will save servicers the extra time and money reconveyances demand.

COMPLIANCE, AUDITS AND QUALITY CONTROLS

Field services companies are inundated with requests for information from their servicing clients as they feel the increased pressure from regulators.  From questionnaires to in-depth onsite audits, requests for information have gone from a security focus to reviewing every detail of the company’s business operations.  It is important that field services companies have the appropriate resources to respond and manage these requests.  A way to mitigate issues before the client sees them in an audit is to conduct internal comprehensive risk assessments.  Coupled with the proper quality controls and checks in place, field services companies can minimize discrepancies identified in client audits.

Quality control for national field services companies begins at data collection and is consistent throughout all of their processes and procedures.  Smart scripts currently guide inspectors and vendors completing work at properties across the country.  They will continue to evolve in 2015 to reflect changing requirements and satisfy client needs.

As an inspector or vendor begins the script on a mobile device, each answer he/she gives initiates the next question.  If pertinent information varies greatly from one property visit to the next, the script is designed to flag the discrepancy to ensure that the vendor is at the correct property or is properly completing the script.  For example, if an inspector arrives at a property and states that it has a one-car garage, but in previous inspections it was reported that the property has a two-car garage, that inspector will be instructed to follow steps to ensure he/ she is at the correct property.  These smart scripts allow the field services company to have better controls in place and mitigate issues in the field.

TECHNOLOGY IS KEY IN 2015

As servicers seek assistance from their field servicing partners in complying with new legislation and regulations, they want greater visibility, not only into the work completed by field services companies, but also into who is completing and processing that work.  Field servicers need to continue to invest heavily in technology for 2015 to provide that level of detail and other data to servicing clients.

The best way to give servicers a full-scale look into the work field services companies complete on their behalf is by creating a customized interface with a real-time, two-way feed for data and information.  That level of integration with servicing clients will allow them access to real-time property information and it gives them the transparency they are seeking.

We cannot mention technology without recognizing the huge impact mobile devices have had on the field services industry.  Mobile devices have completely changed the way we do business, and continue to help improve timelines and enhance the quality of the information submitted to servicing clients.  Field services companies are taking advantage of the “smarts” of smart devices to build controls into their processes to ensure the work is done right the first time.

Another technological trend that will continue to change the face of field services is geolocation technology.  When a photo is taken with a mobile device, it captures the longitude and latitude of where that photo was taken.  Field service companies have created applications to capture that data and apply it to the front-of-house photo requirement to ensure the inspector or vendor is at the correct property.  If the photo is taken outside a pre-determined number of feet, it sets off a red flag within the app, prompting the request of more location information from the vendor or inspector within the app.  Additionally, these apps can collect date- and time-stamp data to help eliminate the possibility of vendors or inspectors accidentally using an old or duplicate photo.

In addition to mobile and geolocation technologies, field services companies will be piloting the use of video in the field in 2015.  The first steps to utilizing video is to determine its best use and ensure field services companies, servicers, and investors have systems that can handle the larger video files.

Once the red tape is cleared, the possibilities are endless for video in the field.  Inspectors and vendors can video-conference their field services partners to ensure they are at the correct property.  Damage repairs can be authorized on-site and in real-time utilizing video because it can show that damage in more detail than a photo.  Many other decisions can be made in real-time, helping to improve the maintenance of the vacant property, enhance quality controls and decrease the time it takes to relay the property information to the servicing client.

LEARNING OPPORTUNITIES AND VENDOR MANAGEMENT

As the scrutiny on the housing industry trickles down to field services companies, they too need to monitor and influence the behaviors of their inspector and vendor networks.  Just like internal field services employees need consistent training to keep up with changing regulations and requirements, inspectors and vendors also need learning management for themselves and their crews to stay ahead of the curve.

Implementing a learning management system for their national vendor networks is a trend that will gain momentum in the coming year.  This will allow field services companies to deliver content and track consumption to ensure the newest policies and requirements are properly communicated to vendors and that they are sharing this information with their crews and subcontractors.

Field services companies also need to ensure that their inspector and vendor networks are delivering the highest quality of work.  To do so, they must audit their work and business processes.  Compliance to licensing and background check requirements is reviewed, along with the vendor’s operations and systems during these audits, often conducted by third-parties.

It is difficult to predict the outcome of this new era in housing.  Heightened regulations are governing how field services companies complete work on defaulted and foreclosed properties across the country.  While borrowers and neighborhoods need to be protected, we are unsure of the effects these new rules will have on the servicing and field services industries in the future.  But field servicers do play a big role in this new era of housing. We must continue to serve as the eyes and ears of the servicing industry and provide the support and compliance our servicing clients need.

Please click here to view Surveying the Field: The Future of Field Services [pdf].

About Safeguard 
Safeguard Properties is the mortgage field services industry leader, preserving vacant and foreclosed properties across the U.S., Puerto Rico, Virgin Islands and Guam. Founded in 1990 by Robert Klein and headquartered in Cleveland, Ohio, Safeguard provides the highest quality service to our clients by leveraging innovative technologies and proactively developing industry best practices and quality control procedures. Consistent with Safeguard’s values and mission, we are an active supporter of hundreds of charitable efforts across the country. Annually, Safeguard gives back to communities in partnership with our employees, vendors and clients. We also are dedicated to working with community leaders and officials to eliminate blight and stabilize neighborhoods. Safeguard is dedicated to preserving today and protecting tomorrow.  Website: www.safeguardproperties.com.

The Path To Cost Containment by Safeguard Properties Vice President of Operations Michael Greenbaum

Posted on by Safeguard

In the October issue of Servicing Management, Safeguard’s vice president of operations Michael Greenbaum discusses how field services companies can achieve sustainable cost containment amid costly burdens stemming from new and tightening industry regulations.

The Path To Cost Containment

The cost of doing business for field services companies has increased due to rising regulatory oversight – so what can they do to find new efficiencies?

As the housing bubble burst, field services companies were tasked with meeting the avalanche of demand from their clients, while banks and servicers worked to manage the growing inventory of default properties.  When the crisis continued to spin out of control, more and more companies got into the field services arena as the demand for services continued to escalate.  Now that the market is moving back to normal, or the “new normal,” field services companies are seeing their workloads flatten or even decline, causing some to decide to get out of the business altogether.  The companies that remain have made the business decision to continue to invest in quality processes and manage the costs associated with new and tighter regulations.

While these regulations were designed to afford greater protections for consumers and homeowners, and address large volumes of vacant, defaulted and foreclosed properties, they also have created enormous and costly administrative burdens.

Similarly, technology advances, the sophistication and proliferation of mobile communications devices, business intelligence and the increased level of security that come with these advances have forced companies to dedicate larger portions of their budget to technology.  Field services companies must look at all paths that will lead to sustainable cost containment results without negatively impacting critical business outcomes.

Driving down costs with technology

Supporting vendors in the field with technology, systems and processes that help them do their jobs more efficiently and that provide timely and accurate property data is critical.  Mobile technology has changed the way the field services industry manages its day-to-day core functions – protecting and preserving neighborhoods.  With smart devices, property preservation processes that could take days and were once done using a pen, note pad and camera can now be completed using a single device and in a matter of hours.

By providing vendors with the systems to securely access current property information, such as occupancy status, roof and siding color, number of outbuildings, etc., the risk of costly errors can be minimized, as can multiple trips to a property.  These systems also are robust enough to allow vendors to assign, track and manage the work of their crews for greater efficiency.

One cost benefit of mobile technology is that it changes the vendor work order submission process from a backend process to a front-end process.  Because vendors are able to upload results and photos from the field to their back-office in real time, the back-office is able to spend more time focusing on quality and less time on data entry and other less-profitable tasks. 

Operational cost containment can come in many forms, but in the field services industry, much of it comes down to providing vendors with the resources to run a more efficient operation in the field. There are several ways this can be accomplished, and much of it centers on good old communication.

Sharing best practices is one way field services companies can add value to what they bring to the table. By studying good vendor behavior – what they are doing right – the field services company can share their observances and foster dialogue by providing opportunities to engage.  This can be accomplished through video resource libraries, daily updates, educational opportunities and vendor advisory councils, for example.

One example of how the sharing of best practices can improve cost savings and efficiency is with activity-based cost analysis on services, such as real estate owned maid services.  By studying and analyzing the best practices of the most efficient vendor – including cleaning chemicals, crew composition and structure, and detailed time studies – a process map of the optimal workflow can be developed.  This analysis can help create best practices, like starting the cleaning activity at the highest point in a room and pushing dirt down to the floor; completing detailed pre-soak chemical processes by room; and tracking total time at a property to optimize labor usage.  Vendors can improve the quality of work, completeness of work and crew utilization by implementing the best practices determined by trends identified in the data collected.

Long-term cost containment

Many times, it is easier to take a reactive approach to cost containment when looking internally. Picking off the low-hanging fruit, such as hiring freezes and expenditure deferrals, yields short-term results that can be difficult to sustain.  A more thoughtful approach, on the other hand, can help a company maintain long-term cost control.

Field services companies can analyze the data collected from each field visit to identify trends and make better business decisions – ultimately, streamlining internal costs.  For example, when a property is being conveyed to the U.S. Department of Housing and Urban Development, it must meet certain guidelines.  Field services companies can evaluate a property up front based on trends they identified using data that they already collected:  Is the property in a state with a high re-convey rate?  Are there known or reported damages?  What is the age of the inventory?  What is the quality of the vendor performing the work?  With these weighted risk factors, a field services company can isolate properties that need a high-risk review.

Finding network efficiencies

For the field services industry, the vendor network is the critical element to completing work efficiently. Daily, tens of thousands of contractors are in our communities inspecting, maintaining and repairing properties.  Efficiencies can be realized by analyzing how they spend their day.  A majority of their time is spent getting from one property to another – or “windshield” time.  UPS pioneered cost containment through route efficiency by finding a creative way to decrease windshield time.  It found that it could save money on gas and time by optimizing delivery routes so that drivers don’t have to make as many left turns.  It seems silly, but when you scale it to the tens of thousands of UPS trucks on the road, sitting in the left turn lane and waiting for the turn arrow or traffic to clear is a big waste of time and gas.

Field services companies, including ours, have taken notice and developed mobile applications that will, among other things, create a route schedule based on the addresses of the vendors’ work orders.  As the largest field services company in the nation, we have found that we can service more properties more effectively by using predetermined route schedules to decrease time spent in transit.

One thing the field services industry has a lot of is data.  Data from inspections, grass cuts, lock changes, debris removal, vandalism, secured pools and leaky roofs, for starters.  But data is only as good as what you do with it.  By looking at the billions of points of information, field services companies are able to slice and dice the information a thousand different ways.  Many are using this information as insight into their vendor network performance.

Once analyzed, data can be used to create a “heat map,” identifying with designated colors the areas or regions in which the contractors are meeting the requirements and standards or where additional focus is needed.  Heat maps also can be used to determine where to issue work orders and to which vendors.

When overlaid with vendor quality results, the distribution process can be further optimized.  Data analytics and heat maps can reduce time loss, leading to faster response times, improved compliance and higher-quality work.  They also can pinpoint areas where there is inconsistent or incomplete work, as identified through specific performance measures, allowing for additional resource focus.

Ultimately, the goal is to predict trends and patterns to reduce costs.  For clients, this efficiency also translates into a higher return on their investment in the form of lower field service costs. 

Like the mortgage industry, the field services industry will forever be changed by the housing crisis.  The industry as a whole has been challenged to improve the quality and delivery of services, while, at the same time, looking at ways to contain costs.  By performing all aspects of inspections and field services to the highest possible standards, while looking at operational costs, field service companies can improve their top and bottom lines and assist their vendor networks in successfully managing cost containment.

Michael Greenbaum is the vice president of operations at Safeguard Properties.  He can be reached at michael.greenbaum@s.safeguardproperties.com.

Please click here for The Path To Cost Containment article in PDF.

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.

Educating Employees in a Dynamic Industry by Safeguard Properties Director of Training John Gonos

Posted on by Safeguard

In the October Issue of DS News, Safeguard’s director of training John Gonos discusses what mortgage field services companies must do to keep employees current with changing industry regulations and guidelines.

EDUCATING EMPLOYEES
IN A DYNAMIC INDUSTRY

Field services companies must provide on-demand learning to
keep up with changes in regulations and guidelines.

No one will dispute the fact that mortgage servicing is an ever changing industry.  From investor guidelines, new Consumer Financial Protection Bureau (CFPB) regulations, False Claims Act provisions, Protecting Tenants at Foreclosure Act rules (PTFA), and the Service Members Civil Relief Act guidelines (SCRA—just to name a few—the cost of compliance is increasing for servicers across the country.  But they are not the only ones impacted; maintaining a high level of quality and compliance trickles down to the servicer’s vendors, including field services companies, which serve as partners in keeping properties, and the servicer’s assets maintained and secured in anticipation of foreclosure or sale to a potential homeowner. 

From there, the onus is on the field services company to have processes and procedures in place to communicate and train employees on current guidelines and regulations.  At face value, creating an ongoing training program can seem like a difficult and daunting task.  But if you consider the benefits reaped, such as increased productivity, increased compliance with rules and regulations, effective use of new technologies, and increased job satisfaction, the time and costs involved are well-invested.

But to ensure compliance and quality of work both in the field and internally, field services companies must think outside of the box and invest in multiple methods of training for their employees.  Traditional learning methods are no longer enough; field services companies must commit to eLearning and ongoing, innovative training techniques.

TRAINING AND DEVELOPMENT IS IMPORTANT

According to the 2013 State of the Industry report, released in December 2013 by the American Society for Training and Development (ASTD), companies in the U.S. spent $164.2 billion on employee training and development in 2012.  That amount equals $1,195 per employee, up from $1,182 in 2011. According to the report, employees averaged 30.3 hours of training, and technology-based delivery of instruction rose to 39 percent of formal hours up from 37.2 percent in 2011.

The report found that the top three areas of training content in 2012 were:  managerial and supervisory (13.5 percent); mandatory and compliance (10.8 percent); and processes, procedures, and business practices (9.9 percent). 

Regulatory scrutiny, process changes, production demands, and client-specific customization of tasks are on the rise.  These factors can increase the stress an employee feels as they work to meet their customers’ needs while keeping up with myriad changes.  Traditional training techniques and eLearning are helpful in getting an employee up to speed, but ongoing and active learning methods are required for them to remain successful and up-to-date.

BLENDED LEARNING ENVIRONMENT

Traditional classroom, hands-on, and eLearning training methods still produce the needed results and remain widely-used in many industries across the country.  However, research has found that these are the best ways to teach big picture concepts, meaning they are most effective for new hires but not workplace veterans.  One size does not fit all, and a strict adherence to traditional classroom and eLearning models can oftentimes leave employees wanting and needing more as these methods become less effective as the depth of information increases.  Employees need a better way to get the information needed to do their jobs effectively as the rules and regulations evolve.  They also need this information quickly and presented in ways that will minimally disrupt their daily job activities.

In the training and development world, the paradigm that provides employees with an on-the-job learning platform is called “performance support.” This model is not a replacement for new hire or new position training, but a supplement to it.  Material is made available online and on-demand to employees in concise and digestible amounts.  Examples of performance support include online tutorial videos and step-by-step instruction lists to accomplish a particular task.  Similarly, if an employee gets into a “knowledge bind,” they must have immediate access to the material needed to stay on-task and work through the problem quickly.  It also eliminates the need to interrupt a coworker for assistance, thus maintaining the productivity of other employees.  The material is highly specific to a single process—or is more likely part of a larger process—and is presented in a way that allows users to control the flow of information.  They can stop, go back, and start at their own pace. And because the information is task-specific, the user is also able to get to the answer quickly and without having to wade through unnecessary material.

With the sheer volume and complexity of information being generated, field services companies can benefit from this training and development model.  The loss of productivity from employees hunting for the right information to do their jobs has been well-documented.  While it is necessary to have an extensive library of lecture-style training classes and eLearning courses to guide employees through large amounts of information related to their roles, it is just as important to provide to employees an on-demand library of recorded simulations whenever they need it.

KEYS TO CREATING A SUCCESSFUL PERFORMANCE SUPPORT PROGRAM

Easy access to these simulations is key to effective usage.  Ideally, it should be electronic and accessible through just a few clicks of the mouse.  Employees must be able to search the library for the needed content and watch some or all of the simulations as necessary.

A comprehensive and ongoing process for creating simulations needs to be put in place. The goal is to create simulations that cover every area of the business and all of its systems as quickly as possible. Additionally, a “practice mode” in which the software walks the employee through the necessary keyboard strokes or mouse clicks to finish the transaction is an essential tool in training.  This way the employee gets a feel for doing the transaction in a safe environment.

Lastly, there must be a “test mode” in which the employee does the transaction from start to finish with prompts if they make a mistake.  This tests their ability to perform the transaction, but the results are not tracked; it is strictly an opportunity to verify their learning.

The software must be simple to use, and it is helpful for the field services company’s business partners to create some of the simulations, as they are the experts on how their transactions should be processed.

One of the most challenging aspects of the servicing industry and the field services business is educating people on ever-changing processes, guidelines, and regulations.  Servicers need field services vendors that can uphold the highest levels of quality and compliance.  Those same companies must relay messages about new rules and regulations to their employees in an effective and efficient manner to properly protect properties and neighborhoods, and to keep their servicing clients in compliance with investors and governmental entities.

An on-demand learning library coupled with classroom initiatives and an extensive eLearning catalog create an effective blended learning environment for employees in a highly scrutinized and regulated industry like mortgage servicing.  It helps to keep employees updated and provide them with a source of ever-present information; giving them answers when needed, reducing frustration, and keeping them productive while they continue to learn.

John Gonos is the director of training at Safeguard Properties.  He can be reached at john.gonos@s.safeguardproperties.com

Please click here for Educating Employees in a Dynamic Industry article in PDF.

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.