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» VISIT US ONLINE @ DSNEWS.COM 59 Disaster Response & Rebuild at Fannie Mae, stated that "preparedness should include far more than financial steps and logistics." A study by the National Bureau of Economic Research found that mortgages written on homes in these "exposed locations" are being shed by banks and absorbed by Fannie Mae and Freddie Mac. "is implies that homeowners and investors have been making location decisions without properly pricing the cost of potential peril, and that the government has been enabling the oversight," the Harvard Business Review reporter. Chad Mosely also noted that the number of homes in high-risk areas has grown. "As growth and population have increased, properties affected by natural disasters have increased," Mosley said. "As a result, there are more homes in areas that could be affected by natural disasters. As such, it is critical that we continue to perfect processes and technology to address these risks as they arise." Mosely added that the most important part of preparation is to have the finances available ahead of time in the event of a disaster, especially those in disaster-prone areas. "We recommend that servicers have a pre-approved emergency allowable for natural disasters that allow completion of certain emergency work to prevent additional damage (such as drywall removal and water extractions)," he said. "ese services could make the difference in a property having repairable damage versus catastrophic damage." e problem with preparing, Mosely added, is that storms are often unpredictable. "ere are many instances where servicers will spend time and money protecting homes from damage, but then the storm changes its course and hits many homes not protected," he said. To alleviate the headache of dealing with the unexpected, making you sure there are clear guidelines in place between servicers and vendors can make all the difference. "It would be helpful if investors provided more specificity on how each investor wants mortgage servicers to behave following a major storm or disaster," Jaffa said. "Some investors have procedures in place while processes can remain unclear for others. Establishing clear guidelines and continuously updating them following a major storm or disaster will alleviate some of the challenges when managing affected properties." THE TECH FACTOR "Technology needs to help reduce risk for servicers, as well as their borrowers and investors," Mason said. "Consider implementing technologies that can seamlessly take the customer from onboarding through each phase of servicing, including loss mitigation—with no gaps. Such capabilities are valuable for servicing in general but even more important when evaluating an uncontrollable event such as a natural disaster." According to Mason, disasters, tragic as they are, can be a time for advancement. "e bottom line is that natural disasters do not need to create workflow disasters—nor should they," she said. "ey offer a prime opportunity for servicers to enhance customer service and take a giant technological leap forward. e key is to capitalize on technologies emerging out of digital disruption to manage disaster recovery and win customer allegiance at the same time. By letting automation handle the ups and downs of disaster mitigation, as well as its complexities, servicers can create eternal customer loyalty." New technology is already making disaster response easier, as servicers are able to react faster. "Coupled with improvements in technology like weather-mapping and geo-fencing, clients have the ability to be more targeted in their disaster responses," said Alan Jaffa. Of course, the benefits of advancing tech are not just limited to disaster prep and recovery. Kerry Medel, Client Relationship and Operations Manager for Brookstone Management's Property Preservation Division, notes how new tech can impact not only costs, but cut time in the QA process. "Companies today are constantly reevaluating their field services QA processes in the quest to not only reduce timelines but also their exposure by exploring new avenues to integrate automation into their QA procedures," she said. "e most successful QA model will not be built solely on the paragon of technology," she continued. "It will consist of a coalescence of technological exploitation, alongside team members with the most creative, knowledgeable, and analytical minds, who live among the patterns, embracing the errors much more than the successes—it will be a fine balance between man and machine." "It is critical that we continue to perfect processes and technology to address these risks as they arise," Mosely said. "By continuously improving processes, developing our employees, and improving technology, we are able to make our business more efficient and, in turn, be prepared for the future." "Establishing clear guidelines and continuously updating them following a major storm or disaster will alleviate some of the challenges when managing affected properties." —Alan Jaffa, CEO, Safeguard Properties

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