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Russ Klein Balances Quality and Efficiency

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

In its December issue, HousingWire published an article authored by Safeguard’s Russ Klein, AVP of quality assurance and training, titled Balancing Quality and Efficiency.

Balancing quality and efficiency

INDUSTRIAL ENGINEERING was once thought of as something only applied to processes in factories and production lines. But now more office-based businesses are embracing the concepts to increase quality and set production standards, creating and managing systems that integrate people and processes in productive ways.

Field service companies and their internal staffs can benefit from these applications. Safeguard Properties, the leader in the property preservation industry, is using the principles of industrial engineering to set expectations of its employees, balance speed versus quality, select the right candidates for each job function, and evolve training techniques based on production standards.

Many companies make the mistake of taking a “cookie cutter” approach to setting standards. Rather, standards need to be established through a scientific process that is specific to the organization, independent, and averaged over time.

For example, a company could set a production standard of nine minutes to complete an order. But unless this number has been tested with multiple employees and properly analyzed, it may be too much or too little time. Multiple variables come into play that will affect order completion times, such as the order type, the number of photos that need reviewed, client rules, and loan type. These need to be factored into any studies or analysis of production standards.

Because quality and production go hand-in-hand, every production unit can benefit from industrial engineering to some degree. It is important to understand what employees do at the most basic levels to develop appropriate labor standards and training opportunities. This can be achieved through time and motion studies.

Time and motion studies analyze the time spent on each function of a job or series of jobs to evaluate performance. These studies are used to create production standards and check the efficiency of workers. It also is a good way to identify best practices. In the time and motion studies, job functions can be measured to fractions of a second.

For example, in the offices at Safeguard, employees can be measured on how long it takes to answer a phone call, update an order, review photos, or respond to an email. Safeguard employees are also evaluated on quality scores.

To get an accurate assessment, companies need to study a group of diverse employees completing these various functions with differing variables to help determine what standards will produce the best quality in the end. Once the study is complete the results can be analyzed and business standards established for all job functions.

A few common misconceptions in business are that there is always a trade-off between speed and quality and that having employees complete their work at a slower pace will improve scores. Safeguard recently completed a study asking some of its employees to slow down to boost job performance.

The results showed that some of the fastest employees actually had the best quality scores. Knowing that speed and quality can co-exist helped Safeguard adjust its production standards.

Although speed and quality can co-exist, it is important that companies find the trade-off point — or the point at which speed impacts quality — to effectively set production standards. The data collected in the time and motion studies as well as quality control reviews can help companies accurately determine the trade-off point and set realistic expectations for employees.

A critical component to improving quality in any business is selecting the right people to do the job. This includes consistency in the interviewing process and applicant testing.

While selecting applicants, companies must have their interviewers ask a uniform set of questions. This enables all of the interviewers to compare answers and collaborate on hiring decisions. The interviews also should focus on a specific job and pre-determined skill set necessary to be successful in that role.

Applicants lacking those skills should be disqualified for the job.

Another way to establish if an applicant is a good fit for the job is to create a test. Questions about specific behaviors, scenarios, personality, and skills can help predict on-the-job performance and help companies choose the right employees.

Training is another critical component in boosting quality scores while maintaining efficiency. Studies have shown that adult learners thrive on a blended learning model — a mix of classroom and on-the-job training. Adults also learn easier if the training is interactive, especially in the classroom setting. This can be accomplished through alternatives like e-learning and online simulations.

Training depends on quality and production standards. Once those standards have been set, it is important for companies to evaluate their training needs through a job-task analysis. This can be done by identifying all of the tasks performed by each position and creating a comprehensive list of all of the company’s training resources. Comparing those job tasks to the list of available training materials can identify any gaps or conflicts.

Training content then can be designed to fill those gaps and enhance the existing training materials.

Also, it is critical for companies to create a standard leader’s guide for each course for members of their training staff. Every session must have the same delivery, content, and order. It is equally as important to have a mix of professional trainers on staff and utilize the company’s subject matter experts for training new employees.

Along those same lines, companies need to create common training content that departments or service lines can modify to fit their needs. The company only needs to create this common content once so it is easier to update, reduces time trying to find the correct presentation, and provides a consistent appearance for the company.

Finding the perfect balance between quality and speed requires a little industrial engineering even in businesses that are office-based like the internal operations at property preservation companies. With proper production standards, interviewing processes and training, all employees know the company’s expectations and can succeed in achieving the standards set by the company.

Russ Klein is the AVP of quality assurance and training at Safeguard Properties, the largest mortgage field service company in the U.S.

Please click here to view the 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.

Alan Jaffa and Darren Kruk Discuss Building a Chain of Compliance

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

In its November issue, DSNews featured an article authored by Safeguard Properties CEO, Alan Jaffa, and Information Security Officer, Darren Kruk, titled Building a Chain of Compliance.

BUILDING A CHAIN OF COMPLIANCE

A layered approach maintains the integrity and strength of information security in the mortgage servicing industry.

There is an old proverb that says a chain is only as strong as the weakest link. This is true in the mortgage servicing industry when managing data security. Mortgage servicers, at the top of the chain, have systems and policies in place to protect private and confidential information at the highest levels.

In turn, servicers share certain information with their field service partners—the next link in the chain—when property preservation services are required to inspect and maintain vacant and defaulted properties. Those companies then provide access to data as required to other links in the chain—employees, inspectors, and contractors who monitor and perform services at those properties.

Every link in the chain must be equally strong in understanding and adhering to policies and procedures to protect the security and integrity of confidential information. Ongoing data security training is critical to ensure that every person who has access to sensitive information complies on a day-to-day basis with all applicable guidelines and requirements.

Those include the unique requirements of mortgage companies and their field service partners, as well as industry and regulatory guidelines of agencies such as the Consumer Financial Protection Bureau (CFPB), Fannie Mae, Freddie Mac, HUD, and the U.S. Department of Veterans Affairs (VA).

The challenge in protecting data through an entire chain of participants is that it becomes more difficult to ensure the confidentiality of data down each successive link. Small business contractors, for example, may not have the technical resources of a large mortgage servicer or national field service company but still must make sure the data they access is protected with the same vigilance. To ensure compliance, field services companies must not only educate their inspector and contractor networks on best practices for physical and information security, but they must also routinely monitor and audit them to ensure compliance.

Data asset management is a critical component of information security. Every company needs to understand the data it has collected, its classification, and how and where it is stored. Knowing the nature of this data is important for protection, and anyone who has access to confidential data should take appropriate measures to protect it.

Protecting Access and Passwords
Inspectors and contractors performing work at properties are granted limited access to field service and client systems that contain confidential information that they need to complete their work. All user names and passwords, as well as data housed on systems, must be kept confidential. This also applies to the inspectors’ and contractors’ own systems and accounts. IDs and passwords should not be shared or displayed in a public place.

As field servicing companies develop mobile applications to better service the needs of their clients, it becomes more important for inspectors and contractors to ensure their systems are secure.

People use computers and smartphones in almost every aspect of modern life. These devices, while they grant access to a variety of services and information, also can become coveted honeypots of information. If exploited, these devices can be susceptible to identity theft.

Inspector and contractor networks need to create complex passwords for all devices used in the office and in the field including computers, laptops, tablets, and smartphones. It also is important to change those passwords on a frequent basis to prevent attacks that may compromise accounts.

Anti-Virus and Firewall Programs
Most people understand the importance of anti-virus programs, especially those who have experienced the complications of a virus that has infected their computers or systems. Firewalls, while not as widely used, are just as important. These programs, when installed correctly, can help to prevent hackers from gaining access to systems, computers, files, and confidential data. They need to be renewed frequently with the latest virus definitions and firewall updates.

While keeping anti-virus software up-to-date, it is important to patch the operating system and programs, as well. There are new vulnerabilities that are discovered frequently within these programs and systems that may allow unwanted intruders to gain access to confidential data. The companies that create this software release security patches and updates to plug these holes. It is critical these systems are current, especially on mobile devices.

Encrypting Drives
Encryption is the process of encoding data in a way that hackers cannot read it, but that authorized parties can. It is critical for not only the hard drives on computers, but also the easy-to-use external thumb drives. In the event of a loss, the encrypted data that resides on these drives would be useless to hackers who may look to improperly use the information contained within them.

Many different programs can be used to encrypt drives and systems. These include Bitlocker (included with Windows OS) and True Crypt (which can be used to encrypt external and thumb drives), as well as whole drive encryption programs such as those made by CheckPointe and Sophos.

Shred, Shred, Shred
The importance of a good confetti-cut shredder to destroy confidential documents cannot be overstated. Strip-cut shredders are not effective because the remnants can be reconstituted too easily. Policies should be in place to shred all documents that contain confidential data of any type.

Once a business identifies the types of data that are confidential, anything written down or printed out containing that sensitive information needs to be shredded rather than tossed in a trash bin.

Often forgotten are post-its or other notepads. People use them for everything from taking down phone numbers and account numbers to even remembering passwords. They attempt to hide them where they think no one else will find them, such as under their computer monitors or keyboards, and as a result, they often forget to shred them. Anything with confidential or classified information must be shredded to ensure full data security.

Physical Security
In addition to securing systems and devices, all businesses need to be aware of potential physical security concerns. All access to business systems and buildings should be protected. This must include access by every person who enters a facility, from the guy delivering water to the technicians who work on computer systems. Every person who enters a facility must be viewed as a potential data security risk and should be assessed and controlled accordingly.

At the same time, it’s important to recognize the need for different levels of security control based on the potential risk that a vendor or service provider may pose. For example, a grass-cut vendor will require different levels of control than a technician who is repairing computers. The technician, who may have more access to data within a company’s systems, presents a greater risk and thus the company should work under tighter controls. Does the technician require a master password to access all data or just what he needs to fix? Does he work for a reputable vendor? These are the types of questions that should be addressed before systems vendors and technicians are called in to complete work.

Physical access to computer systems is another important consideration. Most people do not realize that passwords are not needed if someone has physical access to a system. There are alternate ways to remove or change passwords on everything from networking devices to operating systems if someone has physical access to those devices. This applies to backups of data and systems as well as to originals. All outside technicians or vendors need to be monitored while completing work. A trusted company employee should be at a system vendor’s side throughout his or her entire visit.

Communication Is Sacred
Field service companies need to continually remind their inspector and contractor networks that electronically transmitted communications must be protected. When communicating in person, it is easy to control the audience. This is not the case with electronic communication.

Every day and in every business, people send emails, text messages, and voicemails to others and have no idea who else may have access to these messages. These forms of communications must be secured so that confidential data does not become compromised.

To ensure the security of all electronic communications, any websites being viewed on company computers need to have a secure sockets layer (SSL) when confidential data is being transferred, and any email provider must use transport layer security (TLS). SSLs and TLS provide communication security over the Internet and allow for data and message confidentiality. Any data transfers should proceed only if these protections are in place.

Being cautious when relaying confidential information applies to phone conversations as well. It is critical to validate who is on the other end of the phone line before discussing any sensitive data.

Use Common Sense
Every situation concerning confidential client and property information needs to be evaluated to strengthen every link in the information and data chain. The process requires common sense, vigilance, and ongoing training to ensure that all guidelines, regulations, and best practices established by mortgage companies, regulators, and field service companies are followed.

Inspectors and contractors in the field need to be aware of potential security breaches and take the necessary precautions to keep all confidential data secure. It is everyone’s job to make sure that each link of the chain is as strong as possible.

Alan Jaffa is the CEO and Darren Kruk is the information security officer of Safeguard Properties, the largest mortgage field service company in the United States.

Please click here to view the article in PDF.

Darren Kruk Reveals the New Technology Threat

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

The September edition of HW Focus features an article authored by Safeguard’s Darren Kruk, information security officer, titled New Technology Threat.

New technology threat
How vendors can help keep mortgage servicer information secure

Before the world of mobile phones, pagers, tablets and other “electronic leashes” that are part of daily life today, life was much simpler. People handed out their Social Security numbers with no concerns about thieves using that information to steal their money or identities.

Were there fewer criminals in the world then? Probably not. It’s just that advances in technology have given criminals new avenues to access and exploit electronic information for their own monetary gain.

Each year, technology races forward and brings new innovations and, with it, new exploitations. Protecting confidential information from exposure to new threats is like playing a game of Whack-a-Mole. Those trying to protect information have to stay one step ahead of the criminals who are trying to steal it.

Mortgage servicers and their field service partners are a part of that game. Just as technology is ever-changing, information security continuously must evolve to meet new threats and comply with changing regulatory requirements designed to protect the privacy and security of citizens.

As main vendors for the mortgage servicing industry, field service companies store a lot of confidential property data on behalf of their mortgage servicing clients. As such, they must adhere to the same information security guidelines to meet compliance requirements on behalf of their clients.

Also, field service companies must stay one step ahead of advances in mobile devices, cloud technology and social networking. The reason? Though they bring many benefits, they also present a number of threats.

Mobile devices
Mobile devices have quickly brought the world closer together, allowing people to connect as never before. Our mobile devices are more than phones. They are our online banks, music repositories, contact lists, shopping assistants, and our source for airline tickets, maps, books, email and countless other activities.

In the field services industry, mobile devices also have become a valuable tool to help inspectors and contractors access and update work orders, meet timelines, instantly report property condition and damages, and protect properties from costly damage and code violations.

As the use of mobile devices in field servicing grows, so do the security risks. To protect the security of information transmitted through mobile devices, field service companies must educate and train their contractors using these devices on policies and procedures to keep information secure and minimize security threats.

Among the threats are exposure to cell provider networks that can be hacked, lack of firewalls, and malicious software in downloadable applications that can steal information. Because field service companies and their contractors of necessity must connect with the information systems of mortgage servicers, each can expose the other to potential security breaches.

Field service companies can assure that the information collected on their contractors’ mobile devices is secure by developing their own customized applications. For example, mobile applications should not be able to send or store any information on a customer’s loan or personal information, only the address of the properties the vendors are visiting. This is the easiest way to ensure information does not fall into the wrong hands.

However, even if contractors do not house sensitive information on their phones, field service companies must still ensure that any information collected is not easily accessible. This can be controlled in several ways. The first is to require a username and password that ties directly back to the field servicing company’s internal systems. A user should have to log in with their credentials before gaining access information. After a set period of inactivity, the application should log the user out of the application and require them to log back on.

Any data stored on the phone should be stored in what is referred to as a “sandbox”. Sandbox data cannot be accessed by an individual from their device outside of the application. Nor can they pull information from their devices if they connect to a personal computer.

Cloud technology
While cloud technology is the latest buzz for technologists, companies should tread carefully and understand not only the benefits, but also the risks. Any new technology is an attacker’s dream, as companies often shift to it before they fully understand all of the vulnerabilities. Cloud services are especially vulnerable because they are quickly becoming repositories for large quantities of information, much of it confidential.

Many security experts fear that the next big hack will be to a single cloud service provider because of the ability to compromise multiple companies through a single source. For example, if a hacker has the option to hack 10 companies independently or attack the cloud provider that 10 different companies use as their application service provider, the hacker’s effort will have more impact by attacking the cloud provider.

Until better certifying authority and standards are developed, such as those from the International Organization for Standardization, field service companies and their servicing clients should use cloud services and other new technologies for noncritical, nonconfidential data only.

Social networking
Social networks such as Facebook and Twitter, which connect users through an expansive cloud-sourcing community web, have advanced beyond helping people find old friends and maintain contact with family and friends across the globe. Businesses now rely on them to supplement their marketing and customer outreach efforts.

At the same time, many businesses have had to implement policies on social network usage during work hours because of productivity issues, reputational risks and, most importantly, security threats when employees access these services through company systems.

Hackers are creating new, complex computer viruses that can morph and be delivered to company systems through social networking sites. Work computers and company systems are vulnerable to these viruses when employees download the latest game or viral video. It is important for servicers and field service companies to create policies about social networking that block employee access to prevent potential attacks.

Times have changed when it comes to technology and the way field service companies obtain and relay information to their contractors and their mortgage servicing clients. To take advantage of the efficiencies these technologies bring, and also guard against the potential threats to security, it is imperative that field service companies implement, monitor, evaluate and update their policies and procedures to keep confidential information safe, assuring that their mortgage servicing clients maintain compliance.

Darren Kruk is the information security officer for Safeguard Properties, the largest field services provider in the U.S. He joined Safeguard in 2006 and is responsible for all policies and procedures to protect the security of sensitive client and corporate information.

Please click here to view the article in PDF.

Robert Klein Suggests Holistic Approach to Community Revitalization and Fighting Blight

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

The June 2013 edition of HW Focus features an article authored by Safeguard Properties Founder and Chairman, Robert Klein. In this article, Klein introduces a model for community revitalization that utilizes a holistic approach. Klein also discusses a new innovative tool to combat blight.

Fighting Blight
Stakeholders should Work Together to Find Creative Solutions

There is not a community in America that is immune to the national blight epidemic. While there is not a silver bullet to cure this devastation, I do believe there are innovative solutions, as well as common sense measures that can be taken to ease the burden on communities, homeowners, and local governments. This takes a multifaceted approach that uses a combination of resources to breathe life back into hard hit communities. Rehabilitation and fighting blight cannot be done in a silo. It requires bringing stakeholders to the same table and thinking creatively to produce a solution.

This method is currently being tested at what is called the ground zero of the foreclosure crisis in Slavic Village of Cleveland. Slavic Village is the story of a private-philanthropic partnership coming together to fight blight by rehabilitating a Cleveland neighborhood where between 23% and 30% of the homes are vacant. The focus of the partnership formed between Slavic Village Development, RIK Enterprises and Neighborhood Progress Inc. is to obtain properties from lenders, mortgage servicers, and the local land bank in order to renovate the homes to sell or rent. This process removes bureaucratic obstacles and also has the ability to bring large scale improvement to a community in a relatively short amount of time.

In Slavic Village homes beyond repair were identified immediately to support the overall redevelopment. One of the most important steps in rehabbing a community is identifying what cannot be salvaged. Unfortunately, there are often challenges in getting the demolition process underway as the permit process can be both costly and time consuming. This proves that greater education is necessary on the need for demolition and its associated benefits.

While many may consider demolition as a last resort, it is in fact a vital step in a comprehensive approach. It is impossible to cultivate development and garner interest from investors if homes that cannot be saved are still standing. If the proper steps are not taken to remove a nuisance property then rehabbing efforts are futile. There are also several benefits in demolition including stabilizing property values and eliminating older homes that contain dangerous substances such asbestos. Additionally, many of the materials from demolished properties can be recycled.

Land banks are a great tool in getting rid of nuisance properties. Centralizing vacant and abandon properties is a highly effective way to fight blight. Land banks can make the process for starting demolition more efficient and increase the effectiveness of property preservation. Communities are increasingly considering the possibility of land banks as a way to recover and repurpose vacant properties, and servicers with surplus real estate owned properties are recognizing the value in donating to land banks.

Property preservation is the bottom line in maintaining home values, avoiding extreme rehabbing or demolition and ultimately fighting blight. I believe one of the best tools at our disposal in this battle is a new innovative product that secures vacant properties, preserves home values, and increases neighborhood safety. SecureView is an alternative board-up system that is designed to look like traditional windows providing clear views, letting in natural light. This is revolutionary way to secure vacant and abandoned properties without exposing their vacancy. By utilizing SecureView rather than traditional methods for securing homes, both marketability and safety are enhanced. SecureView is the only product that allows first responders to see inside a vacant property in the event of an emergency.

Made from 100% recycled materials, it is virtually unbreakable, which means it has the wherewithal to protect property from intrusion, and reduce the crime and squatting so often associated with plywood and steel board ups. SecureView can be modified to fit any window, and is quickly and easily installed using a simple but effective compression bolt system. This is truly an effective solution to the issue of blight, increasing a property’s value due to improved curb appeal, which in turn helps to stabilize the entire neighborhood. http//secureviewusa.com/

There may not be a silver bullet in fighting blight but this is a close second. Although the Nation has begun to climb out of an economic recession, this industry will continue to rebuild communities facing the aftermath of a housing crisis.

If we can recognize our collective resources and take a step back to think outside the box a little, we can help these communities join the rest of America on the road to recovery.

It is my hope that Slavic Village, the ground zero of the foreclosure crisis, will be looked at as a model for rehabilitation rather than a reminder of devastation.

To view the online article, please click here.

Community Initiatives First Quarter 2018 Activity Summary

Posted on September 13, 2018October 9, 2018 by Safeguard

Community Initiatives
April 18, 2018

Opening Lines of Communication in 2018

Outreach & Education

Safeguard’s Community Initiatives Department (the Department) launched its 2018 outreach and presentations with a first quarter marked by unprecedented events. The success of this outreach was shown by the unprecedented number of attendees, as more code enforcement officers attended events during the months of January through March of 2018 than in previous years. The Department’s outreach demonstrates its regional commitment and both solidifies and maximizes the clear message that it is relaying regarding the activities and actions of the mortgage servicing industry.

The education platform created and led by Michael Halpern, director of community initiatives, and Heather Lazar, community relations liaison, focuses on the two stages of foreclosure – pre-sale and post-sale; the roles of trustees, servicers, investors, and insurers; and innovative solutions through legislation and research tools.

Regional-based outreach was exemplified in Kentucky and New York. The Department collaborated with the Kentucky League of Cities to offer half-day educational classes to hundreds of code enforcement officers throughout the Bluegrass State. Fulton, Carrollton, Somerset, Moorhead, and Berea hosted presentations for code professionals that highlighted legislative updates. Halpern and Lazar added Safeguard’s expertise related to Vacant Property Registration (VPR) ordinances. Currently, there are 37 local or county enacted or proposed ordinances in Kentucky. VPR elements highlighted by Halpern and Lazar during the classes included necessary ingredients for successful VPRs, goals to obtain through such legislation, “triggers” for registration, creating concise definitions, including strong and easily understood requirements, and critical components for compliance.

The same regional-based outreach took place in New York as the Northern Adirondack, Finger Lake, and Central chapters of the New York State Building Officials Conference hosted their annual conferences. More than 1,100 code enforcement officers attended and took part in Safeguard’s state certified presentations.

The Department participated in a full-day class at the annual EduCode conference in Las Vegas. Although the conference is hosted by the Southwest Chapter of the International Code Council, code officers from 18 states attended the seminar that dug deeply into the foreclosure process and VPRs.

Finally, the Department sponsored, exhibited, and led a class at the annual conference of the Code Enforcement Association of Texas in Fort Worth, Texas. Existing partnerships were strengthened and new ones were formed as Safeguard participated in the Association’s annual event, which drew over 300 officers from throughout the state.

Mortgage Servicer & Property Preservation Contacts Resource

For many years, Safeguard has made outreach to local governments, especially to code enforcement officials, a priority in our efforts to safeguard our clients’ interests. The initial vision of Robert Klein, our founder and chairman, saw the divide that existed as a result of municipal officials’ struggle to identify and communicate with the proper loan servicing staff. These struggles often led to frustration and negative outcomes for all parties. The community initiatives department continues to bridge this gap by providing no-cost educational training and “tools” to assist municipal officials, helping them realize our shared goal in preserving and protecting properties.

While the primary tool that we have offered to municipal staff to help identify proper points of contacts is Compliance Connections, we strive to provide additional ways to assist in facilitating transparency and opening the lines of communication. We continue to see an influx of registration ordinances (which are tracked and added to our custom matrix). Additionally, we regularly receive comments during our various municipal presentations pertaining to difficulties in communicating with the proper parties, which may result in punitive action against servicers.

Therefore, we have re-created a servicer contact sheet originally developed several years ago through the MBA VPR Working Group. The current version can be accessed by clicking here. Please feel free to share.

We welcome any feedback. If you have any questions, concerns or comments please contact the community initiatives department at community.initiatives@s.safeguardproperties.com.

We would like to extend our appreciation to members of the industry who have provided their information. Thank you for your partnership and commitment in building relationships and creating win-win solutions.

If you wish to be added to this resource, or would like to update your information, please email community.initiatives@s.safeguardproperties.com.

Community Initiatives Year in Review

Posted on September 13, 2018October 9, 2018 by Safeguard

Community Initiatives
December 26, 2017

Initiatives for Communities: Weathering the Storm in 2017

Code enforcement officers working for either local jurisdictions or large counties across the nation have witnessed numerous unprecedented and challenging natural disasters in 2017. The conditions and impacts created by hurricanes, flooding, tornadoes, landslides, earthquakes, and wildfires have left a wake of devastation to countless neighborhoods and properties. Despite such negative circumstances, code enforcement officers skillfully rose to the occasion to confront and successfully respond to catastrophes.

Municipal and county code professionals did not face these disasters alone. Safeguard was working alongside them in these locations, as well. We have learned that partnership proved to be more critical than ever. For example, by working together and receiving affected property addresses or impacted street condition information following a disaster from code enforcement officers, properties were then positioned to be preserved and repaired more quickly. This exchange of public information efficiently restored communities and lessened the burden to our code partners.

To support Safeguard’s mission to promote and demonstrate our alliance with and ongoing support of code enforcement jurisdictions throughout the country, the community initiatives department shared presentations with the members of local, regional and state code associations. Multiple classes that incorporated timely information about the foreclosure process and mortgage servicing industry, along with no-cost resources, expanded the perspectives of code officers throughout 2017 at workshops and conferences in Texas, New York, Nevada, Oregon, Missouri, Connecticut, Kansas and Kentucky. Code officers attending the American Association of Code Enforcement (AACE) annual conference from additional states also received fundamental information about the industry and partnership through scholarships and a class. These certified courses enriched the skill sets and improved daily operations for code professionals addressing abandoned properties within their service areas. The material provided by Michael Halpern, director of community initiatives, and Heather Lazar, community relations liaison, was especially valuable in those locations subject to natural disasters.

The upcoming year promises to be one of continued growth. We hope that we have closed the door on natural disasters and the challenges that follow them; however, we all know that fate is unpredictable. Regardless of the type of disaster, we can say with certainty that both jurisdictions and the industry have learned that neighborhoods and properties rebound more quickly when information is shared so that everyone can contribute their expertise to effectively lending a helping hand.

The community initiatives department thanks code enforcement officers for their collaboration and friendship in 2017. We hope that you stay in touch. Remember that Safeguard is your community partner and that keeping the lines of communication open will certainly lead to a productive and successful 2018! If you would like to schedule a class, please do not hesitate to let us know at community.initiatvies@s.safeguardproperties.com.

Community Initiatives Department Partners for Industry Education in 2017

Posted on September 13, 2018October 9, 2018 by Safeguard

Community Initiatives
June 30, 2017

Community Initiatives Finds Information is Worth Repeating

For many code enforcement officers, the information about foreclosures and abandonment is new. But sometimes, the information needs to be said and heard more than once. Director of Community Initiatives Michael Halpern, and Community Relations Liaison Heather Lazar are finding that some property maintenance professionals attended one of our classes in the past, but are returning to hear the information for a second time. There are many reasons why the information truly bears repeating. For example, the scopes of work for code enforcement is ever growing and vacant properties may either be a new task on their growing list of duties, or one that is now taking a priority position. New department initiatives, expanding foci of skill sets, or concerns heard from neighbors may all be reasons that contribute to the opportunity to repeat the best practices undertaken by the industry. Other officers may want to hear about updates among servicers or new, innovative approaches and tools that are being developed. All of that can and is delivered by the department.

In January, the department quickly responded to an invitation from Marcus Kellum, Beautification Unit Director with DeKalb County, Ga., to assist him in co-presenting a class to the International Code Council’s Upper Great Plains Region. The region represents code enforcement officers from and Wisconsin, Iowa, Minnesota, and North and South Dakota. Kellum is highly recognized as a code instructor and teaches multiple classes across the country. The department was honored to share information alongside such a knowledgeable colleague and partner.

That same month, the department collaborated with SecureView to teach a class at the Code Enforcement Association of Texas annual conference in Tyler, Texas. The class focused on the need for the industry’s best practices in the wake of the escalating costs of abandonment to a community. The class was so well received that Safeguard partnered with SecureView again in March for a Lunch & Learn session of the Missouri Association of Code Enforcement in Columbia, Mo. Both classes included highly interactive and engaging officers who have worked with Safeguard and have attended classes previously. The officers found that building a solid knowledge of the foreclosure process was the best tool to address the growing volume of vacant properties in their jurisdictions validated their need to attend the class again.

Also in March, officers from across the country attended the annual EduCode conference, an event hosted by the ICC Southern Nevada Chapter, in Las Vegas. Within the well-acclaimed multiple tracts offered throughout the week, the department led a course that enabled officers to enhance their skill sets and levels of expertise.

The Oregon Code Enforcement Association included Safeguard within the curriculum at their annual conference in Bend, Ore. The extended time allotted for the class allowed for a full demonstration of Compliance Connections, the innovative, web-based tool created for code officers. The system allows officers to insert the address of a vacant property and then have it researched by Safeguard’s code compliance team to identify the direct point of contact. This resolves the problem when county records do not include the most transparent, up-to-date information or details regarding the mortgage servicer. Contact information is then shared with code enforcement officers and violations are sent to the appropriate parties.

Last year, the department received certification from the New York State Building Officials Conference (NYSBOC) for the educational class that it offers. New York’s certification adds to the list of other states also recognizing the value in sharing this information with code enforcement professionals. Chapters of NYSBOC have invited Safeguard to their present at their regular meetings, including the Southern Tier Chapter in February and the Westchester County Chapter in May. After certification was granted by NYSBOC, other professional agencies recognized that members could also benefit from hearing Safeguard’s presentation. In March, the Westchester County Fire Marshalls invited the department to speak. This was one of the first times that information was shared with fire fighters — an appropriate expansion of the typical presentation as fire professionals also are addressing vacant and abandoned properties and the new boarding specifications being undertaken within the industry will certainly influence their work.

The department was formed seven years ago under the premise that opening the lines of communication with between the industry and cities is fundamentally important to building relationships. We continue the efforts pioneered by Founder and Chairman Robert Klein and have developed a curriculum that delivers pertinent educational information to code enforcement officers. Attendees to presentations walk away with viable information that can help them in their day-to-day operations, whether it is their first time hearing it, or if it is a much needed refresher.

Land Banks Created to Help Remove, Rehabilitate Run-Down Homes

Posted on September 13, 2018October 9, 2018 by Safeguard

Land Bank Update
April 2, 2017

MARIETTA — The first home to catch the eye in Lowell is a burned-out shell. Wind passes through the slats and broken windows.

Vermin call it home.

And once a week from the beginning of April through the end of September a village employee adds the property’s lawn to the list of village properties needing trimmed.

“Nobody wants to move in beside this, it tears down the property values next door and throughout the whole village,” said Lowell Village Mayor Steve Weber of the home at 207 Main St.

The charred remains welcome visitors and passersby to the village and the Buell Island bridge and sits just a stone’s throw from the village firehouse.

“It’s a safety hazard and the rats and birds have taken over,” explained Weber as he climbed the concrete steps to the crumbling structure on Thursday. “We cut the grass once per week to try and keep the vermin away but that drains on village funds and we’ll never see that money come back because nobody’s paying the taxes on it.”

But this isn’t the only story of blight and drain on local coffers in the county.

“It’s the same story if you go to New Matamoras or Beverly or Belpre,” said Weber. “Blight isn’t just a city problem for Marietta, it’s all over. And I don’t have $15,000 or more just sitting in the village coffers to tear down the homes that are bringing down the whole village. And no one wants to buy a property with years of back taxes to pay off on it either.”

Across Ohio, 41 of the 88 counties are battling blight by utilizing the Ohio Housing Finance Agency’s Neighborhood Initiative Program to create county land banks.

“Essentially we started out by proving we needed to remove and/or rehabilitate run-down homes in three target areas in our county,” said Robert Ritchey, Columbiana County’s land bank liaison. “We saw adjacent counties to us, namely Mahoning and Trumbull, really benefiting from the authorities of a land bank to scrub titles, remove liens on properties and erase back taxes. Then Trumbull County really helped us along in the beginning to create our land bank.”

Since 2014, Ritchey said through funds established by the NIP for Columbiana County, 66 homes have been or are in the process of being torn down with another 28 on the list for East Liverpool, the Village of Wellsville and Salem.

“The NIP process is very in-depth but it also makes it very easy to get the money for those demolitions back,” said Ritchey. “And because we were able to prove how much this has benefited our communities, especially East Liverpool, we were recently awarded another $3.2 million to tear down or rehab more properties.”

With a county land bank established, vacant properties, burned homes without hope of repair and collapsing houses returning to the grasp of the elements can be foreclosed, and if the property goes through two sheriff’s sales without purchase, the property’s liens and back taxes can be scrubbed anew.

“Adjacent property owners have been extremely happy with what we’ve been getting done,” said Ritchey. “Even in densely packed neighborhoods, when you take away one crumbling home, you take away a breeding ground for vermin, crime and lost neighborhood property value.”

Columbiana has a similar makeup to Washington County.

“We’re a river county too and rather than having just one big city, we have a spread of smaller communities and villages with one larger city about the size of Marietta, only ours is named Salem,” said Ritchey.

In Marietta one of the challenges with battling blight is out-of-town, and even out-of-country, ownership on vacant properties.

“There’s a nice brick home at 818 Second St. that isn’t falling apart yet but will quickly head that way and there’s no way to track down the owner. All I know is they have an address in Germany,” said City Code Enforcement Official Wayne Rinehart. “Right now the city has to mow it every warm season and no one is paying the taxes so we’re not making that money back at all…It’s four years behind on taxes.”

But the establishment of a land bank would need to be initiated by the county commissioners.

“The way land banks were explained to us a couple of years ago I understood it to mean that the county would be taking over ownership of all of these properties,” said Commissioner Ron Feathers. “The only way I could ever support this is if the properties could be reintroduced into the private sector after the blight was taken care of. But I’d like to pursue and research what authority the county already has to scrub those titles without having to establish a land bank as well.”

But City Development Director Andy Coleman said having a land bank is Marietta’s only option to stave off slum and blight.

“We can see the benefit it’s providing to other counties throughout the state and it’s not just a Marietta issue,” said Coleman. “We can’t keep up with the vacant and blighted properties across the county and that drives away development too when investors see the fallen state of these homes.”

Weber said in the meantime until funding and title scrubbing options change in the county, he hopes to have the village seize the house on Main Street in Lowell and work out a controlled burn with local firefighters to destroy the safety hazard.

Source: The Parkersburg News and Sentinel

Albany, Dougherty Officials Consider Land Bank

Posted on September 13, 2018October 9, 2018 by Safeguard

Land Bank Update
April 15, 2017

City, county votes imminent on creation of joint land bank authority

ALBANY — The concept of the land bank is nothing new. The first in the country was created in St. Louis in 1973, and there followed land banks in Cleveland in 1976 and Louisville, Ky., in 1989.

The relative success of those endeavors, and the desire to battle blight in the suddenly thriving Atlanta metropolis in the late 1980s, was instrumental in passage of the Georgia Land Bank Act of 1990. Shortly after that legislation made its way through the state Legislature, the city of Atlanta created the Fulton County/City of Atlanta Land Bank Authority.

And while the road from creation to utilization was a long and rocky one in the state’s capital city, the eventual success of that initial land bank became a model that was emulated in Columbus/Muscogee County in 1992, Macon/Bibb County (1996), Savannah/Chatham County (1997), Augusta/Richmond County (1998), and Valdosta/Lowndes County (1999).

By the time the General Assembly updated the Land Bank Act in 2012, legislation creating land bank authorities had been passed in Athens/Clarke County, Statesboro/Bullock County, Rome/Floyd County, LaGrange/Troup County, DeKalb County and, closer to home, Thomasville/Thomas County.

The concept of the land bank is a relatively simple one, as explained by Albany-Dougherty County Planning Services Director Paul Forgey: “A land bank allows for the acquisition of underutilized, blighted or tax delinquent properties to return them to productivity.”

Forgey and Planning and Code Program Specialist Angel Gray, at the urging of such long-time advocates as District 3 Dougherty County Commissioner Clinton Johnson and Ward I Albany City Commissioner Jon Howard, gave both governing bodies an elementary tutorial on land banks at meetings of both boards Monday and Tuesday.

And while self-proclaimed community activist William Wright offered confusing opposition to the concept at the City Commission meeting — “The very poor will be the ones who are damaged without due process” — there appeared to be little standing in the way of expected passage of a joint city/county resolution establishing a land bank authority by the County Commission on Monday and the City Commission at its April 25 meeting.

“I really haven’t gotten a lot of feedback from the city, and while I would never speak for them, judging from their initial reaction (to the proposal), it seemed very positive,” Forgey said Thursday. “I think the approach by both governing boards is that this concept is something that’s been a long time coming.

“I have heard from some of the county folks — Commissioner Johnson and (County Attorney) Spencer Lee have been very supportive of what we discussed. I think this is something that’s been on the county’s radar for some time now.”

Indeed, Johnson said Thursday he’s been pushing for development of a land bank since he was first elected to the County Commission five years ago. He encountered the concept while serving on a statewide GICH (Georgia Investment Community Housing) committee, and he says the time has come for the city and county to take action.

“I think, honestly — and to the detriment of our community — too many surrounding communities have benefited from our blight problems,” Johnson said. “Unfortunately, even if a new business moved into our community with 500 new jobs tomorrow, we’d still have blight issues. A land bank offers us a way to transfer blighted properties in our community back onto the tax rolls, while at the same time allowing us to provide more safe, affordable and decent housing opportunities for our citizens.

“I see a land bank as another potentially effective development tool in our tool box.”

Gray told the two commissions that establishing a land bank would serve a number of positive purposes in the community.

“If done right, (a land bank) has the potential to create jobs, enhance property value, stabilize neighborhoods, reduce crime, save on government costs and return blighted properties to the tax base,” she said.

Howard, a staunch advocate of the city’s long, and often painfully bogged-down, fight against blight, said development of a land bank offers an opportunity to address that issue. At the very least, he said Friday, it’s a “step in the right direction.”

“I look around at all of the blight on the east side of town, and I sometimes think it will take an act of God to get us back where we need to be,” Howard said. “But a land bank does give us an opportunity to get these blighted properties, many of which are in areas that are not conducive to development, back into a condition where they might be desirable for other property owners or developers.

“At the very least, it will give us an opportunity to address these absentee slumlords who have done such damage to our community. A land bank would not be a panacea, wouldn’t get rid of all of our dilapidated structures and eyesores. But it would give us the opportunity to start the process.”

Forgey, noting that, by Georgia law, a land bank authority has no eminent domain powers, said the idea behind a land bank is to take control — through gifting, purchases or other means — of properties that have been abandoned by their owners and offer them for sale as potential pieces of redevelopment or neighborhood improvement programs.

“I heard (Wright) mention that a land bank would ‘take property from poor people who were not able to pay their taxes,’ but there’s no way for that to happen,” the planning director said. “A land bank has no eminent domain authority, so there’s no way one could ‘take’ land from anyone. It’s just not going to happen.

“For a land bank to acquire a property, it has to be completely abandoned. We wouldn’t even attempt to purchase a property until it’s been through a tax sale (on the courthouse steps) and been rejected. So we wouldn’t get involved with a property until its owner and the market have turned their backs on the property.”

Lee said that land banks could be used to take over abandoned properties whose taxes “roll over year after year” without any interest shown by the owner of record.

“After seven years, the taxes (from eight years previous) start dropping off the books and are replaced by the new year’s taxes,” Lee said. “These are properties — and, yes, most of them are blighted, with upkeep falling on the city and county — that you’ll never recoup taxes on (other than through such action as that taken by a land bank).”

Perhaps with an eye on the joint city/county Planning Commission, which has drawn fire in recent days for its failure to attract a quorum of its appointed members to hear a rezoning request that impacted key area employer Procter & Gamble, Forgey suggested that the board of directors required to convene on behalf of a land bank authority be made up of individuals who understand such issues as real estate and economic development.

“Our recommendation is that a seven-member board be appointed, with three members appointed by the county and four by the city,” the Planning director said. “But because this board should be made up of individuals who understand the complicated issues associated with property and property acquisition, we suggest that the managers of the city and county recommend board appointments and have the commissions vote on his or her recommendations.”

Johnson, too, said a proposed authority board must include “the right people.”

“That board has to be made up of developers, Realtors, home builders, people who know how to best utilize available funding,” the county commissioner said. “This can’t be one of those situations where the appointments are made based on who knows who. We have to have a board whose members understand these complex issues.”

Still, Howard warned, city and county leaders must stay abreast of all land bank activity.

“We have to, as elected officials, have the fortitude to be visionaries,” the Ward I commissioner said. “No one will forget that the city made a bad calculation when it accepted the donated radiator shop land (just east of the Flint River). It turned out to be contaminated and cost us a whole lot of money to clean up.

“But in a city in which 14 percent of the houses are either vacant or blighted, we have to take action. I really think the time has come for us to make this happen.”

Source: Albany Herald

A Way to Fight Blight? Cambria County Leaders Study Possible Tool

Posted on September 13, 2018October 9, 2018 by Safeguard

Land Bank Update
March 3, 2017

EBENSBURG – As numerous communities in Cambria County continue to struggle with decaying vacant structures, about 25 people attended a seminar Thursday to learn more about the advantages of land banks when it comes to blight.

The Cambria County commissioners hosted the seminar at the courthouse in conjunction with Community Foundation for the Alleghenies and Vision 2025.

Winifred Branton, author of “The Pennsylvania Land Resource Guide” and program manager for the Land Bank and Blight Technical Assistance Program for the Housing Alliance of Pennsylvania, gave a short presentation on the state’s Land Bank Act.

During the seminar, Branton included examples of 15 communities throughout the state that have formed land banks at the county or municipal level.

Land banks, she explained, are government entities whose purpose is to convert vacant properties back into productive uses.

They can be county- or municipality-based, administered by an existing government department, agency or nonprofit and are backed up by a volunteer board of directors.

Branton said some of the advantages of land banks are powers to extinguish tax liens on properties, negotiate with the county tax claim bureau for purchasing properties up for judicial sale and use of priority bids to acquire tax-delinquent properties without competing with other bidders during a public auction.

However, funding sources can become an issue for municipalities and counties hoping to form a land bank, she said.

“The initial cost to form a land bank is probably the biggest barrier to communities creating them,” she said.

“Partnerships are essential.”

Throughout her presentation, Branton used Westmoreland County’s land bank as an example. Since its creation in 2013, the county has 20 participating municipalities in the land bank and has been able to turn around properties through working with nonprofits such as Habitat for Humanity.

Nanty Glo Mayor Steve Szymusiak said he plans to take the information gathered from Thursday’s seminar back to Borough Council and encourage members to reach out to other nearby communities to gauge interest.

“It’s a good idea,” he said.

Szymusiak said the blight problem in Nanty Glo is widespread and mostly deals with building that are not up for judicial sale, but are owned and not maintained.

“These aren’t just buildings in one corner of town,” he added.

Wally Burlack, a Vision 2025 facilitator, said the city of Johnstown has taken steps to explore the benefits of forming a land bank.

Months ago, the city moved forward with a feasibility study to determine what a land bank would look like. As the information in that presentation was dispersed the idea drew interest at the county level.

There is work being done to pursue a $10,000 grant from the state Department of Community and Economic Development for technical assistance in choosing the best model for a local land bank.

That grant could then help to bring additional money to support a land bank after one is established, Burlack said.

Cambria County President Commissioner Tom Chernisky said Thursday’s seminar was “a way forward” in taking steps to create a land bank.

“We’re gathering the facts to determine whether it’s practical to do in the county,” he said.

In another effort to combat blight, the commissioners unanimously voted in January to add a $15 user fee to deeds and mortgages beginning March 1 through Act 152, which was signed by Gov. Tom Wolf in November.

The Cambria County Redevelopment Authority will oversee the use of this fund to demolish eligible blighted properties that are publicly owned, considered a public nuisance or unfit for human occupancy – and those in which no rehabilitation has taken place during the previous year.

The redevelopment authority also was tasked with setting program deadlines and an application process for municipalities hoping to use the fund.

Part of that process will involve an inspection, verification that no tax liens exist on the property and providing proposed reuse for the land.

The commissioners anticipate seven to nine blighted structures will be demolished each year with the funds of about $105,000 to $107,000 generated by the user fee.

The average demolition cost is about $8,000, but some can be more than $14,000 for two- or three-story structures.

Source: The Tribune-Democrat