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State of Default Servicing Covered in Five Star White Paper

Industry Update
August 18, 2016

The mortgage servicing industry is worlds away from where it was six years ago at the peak of the housing crisis, and many housing metrics have returned to their pre-crisis levels of “normal” activity—which has led many to question what will become of default servicing.

The Five Star Institute discusses the current state of the mortgage servicing industry in the context of delinquencies, defaults, and the homeownership rate in a new white paper, “U.S. Residential Mortgage Default Performance Update & Market Analysis.”

Industry experts such as Moody’s Analytics Chief Economist Mark Zandi, Trulia Chief Economist Ralph McLaughlin, Urban Institute Housing Finance Policy Center Co-Director Laurie Goodman, Collingwood Group Managing Director Tom Booker, Five Star President and CEO Ed Delgado, and Ten-X Chief Marketing Officer Rick Sharga discussed where default numbers are now compared to where they were, and also where they are headed.

“My belief and most of the economists I’ve talked to agree with this is that by next year in 2017 at some point in the year we will be back to pre-crisis normal levels of foreclosure activity,” Sharga said, predicting that there might even be an inversion in 2018.

Zandi noted, “Delinquencies are about as low as they have ever been, and new defaults aren’t too far away from record lows. These are the best of times for mortgage credit. Mortgage quality will eventually begin to weaken, but we are good year or two away from that.”

In the white paper, experts also took a look at the nation’s declining homeownership rate, which is currently at its lowest level in five decades, and whether or not it will improve in the near term.

While many analysts claim it is the millennial demographic that is the key to improving the homeownership rate, McLaughlin said he believes Gen Xers will be critical to increasing the number of homeowners in the U.S.

“If the homeownership rate were likely to be buoyed up at any point in the near future, it would be from their return into homeownership rather than millennials jumping into homeownership,” McLaughlin said.

Click here to view the complete white paper.

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

Source: DS News

CEO

Alan Jaffa

Alan Jaffa is the Chief Executive Officer for Safeguard Properties, steering the company as the mortgage field services industry leader. He also serves on the board of advisors for SCG Partners, a middle-market private equity fund focused on diversifying and expanding Safeguard Properties’ business model into complimentary markets.

Alan joined Safeguard in 1995, learning the business from the ground up. He was promoted to Chief Operating Officer in 2002, and was named CEO in May 2010. His hands-on experience has given him unique insights as a leader to innovate, improve and strengthen Safeguard’s processes to assure that the company adheres to the highest standards of quality and customer service.

Under Alan’s leadership, Safeguard has grown significantly with strategies that have included new and expanded services, technology investments that deliver higher quality and greater efficiency to clients, and strategic acquisitions. He takes a team approach to process improvement, involving staff at all levels of the organization to address issues, brainstorm solutions, and identify new and better ways to serve clients.

In 2008, Alan was recognized by Crain’s Cleveland Business in its annual “40-Under-40” profile of young leaders. He also was named a NEO Ernst & Young Entrepreneur Of The Year® Award finalist in 2013.

Esq., General Counsel and EVP

Linda Erkkila

Linda Erkkila is the General Counsel and Executive Vice President for Safeguard Properties, with oversight of legal, human resources, training, and compliance. Linda’s broad scope of oversight covers regulatory issues that impact Safeguard’s operations, risk mitigation, strategic planning, human resources and training initiatives, compliance, insurance, litigation and claims management, and counsel related to mergers, acquisition and joint ventures.

Linda assures that Safeguard’s strategic initiatives align with its resources, leverage opportunities across the company, and contemplate compliance mandates. She has practiced law for 25 years and her experience, both as outside and in-house counsel, covers a wide range of corporate matters, including regulatory disclosure, corporate governance compliance, risk assessment, compensation and benefits, litigation management, and mergers and acquisitions.

Linda earned her JD at Cleveland-Marshall College of Law. She holds a degree in economics from Miami University and an MBA. Linda was previously named as both a “Woman of Influence” by HousingWire and as a “Leading Lady” by MReport.

COO

Michael Greenbaum

Michael Greenbaum is the Chief Operating Officer of Safeguard Properties, where he has played a pivotal role since joining the company in July 2010. Initially brought on as Vice President of REO, Mike’s exceptional leadership and strategic vision quickly propelled him to Vice President of Operations in 2013, and ultimately to COO in 2015. Over his 14-year tenure at Safeguard, Mike has been instrumental in driving change and fostering innovation within the Property Preservation sector, consistently delivering excellence and becoming a trusted partner to clients and investors.

A distinguished graduate of the United States Military Academy at West Point, Mike earned a degree in Quantitative Economics. Following his graduation, he served in the U.S. Army’s Ordnance Branch, where he specialized in supply chain management. Before his tenure at Safeguard, Mike honed his expertise by managing global supply chains for 13 years, leveraging his military and civilian experience to lead with precision and efficacy.

CFO

Joe Iafigliola

Joe Iafigliola is the Chief Financial Officer for Safeguard Properties. Joe is responsible for the Control, Quality Assurance, Business Development, Marketing, Accounting, and Information Security departments. At the core of his responsibilities is the drive to ensure that Safeguard’s focus remains rooted in Customer Service = Resolution. Through his executive leadership role, he actively supports SGPNOW.com, an on-demand service geared towards real estate and property management professionals as well as individual home owners in need of inspection and property preservation services. Joe is also an integral force behind Compliance Connections, a branch of Safeguard Properties that allows code enforcement professionals to report violations at properties that can then be addressed by the Safeguard vendor network. Compliance Connections also researches and shares vacant property ordinance information with Safeguard clients.

Joe has an MBA from The Weatherhead School of Management at Case Western Reserve University, is a Certified Management Accountant (CMA), and holds a bachelor’s degree from The Ohio State University’s Honors Accounting program.

Business Development

Carrie Tackett

Business Development Safeguard Properties