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54 concentration of properties in "hard to serve" areas? Whereas this is somewhat of a challenge to everyone in this industry, our national coverage and scalability have enabled us to continue to serve rural properties, but, in some cases, not as timely as we'd like. As this trend continues, it is only a matter of time before new vendors appear to service these properties. In the meantime, we pay service and travel charges and expect our clients to understand that we cannot absorb these costs indefinitely. We are seeing a higher concentration of rural properties in need of more repair and preservation work to bring to standard. In addition, we are experiencing clients transferring properties in these areas when other field service companies lack sufficient coverage due to our coverage and scalability. Are there any other critical challenges you are facing heading into 2023? If so, how are you navigating and preparing for these? Uncertainty in the global economic outlook will no doubt bring challenges. We are reacting carefully, and hopefully effectively, for the unknown. We consider ourselves scalable and nimble as an organization as we have been in the past. Our acquisition of Xome Field Services a year ago is part of this planning. As clients expect more sophisticated and seamless technology from field service vendors, volume and scale are absolute necessities. Chad Mosley President, Mortgage Services, MCS What regulatory issues or impacts are most challenging for the property preservation sector? How are you navigating them? ere are a number of regulatory issues that can be a challenge for property preservation providers, but the one that poses a particularly difficult challenge is the various property registration ordinances, the majority of which exist at the municipal level. ere are thousands of municipalities nationwide and each has its own ordinances for registering a property—some ordinances are required for foreclosed properties, while others are needed for vacant or even delinquent properties, and the complexity of trying to manage all of these required registrations can be an overwhelming process. Fortunately, MCS has been able to excel at this complex and sometimes risky procedure for our clients by building a team of professionals that understands the nuances of property registration ordinances as well as utilizing technology that streamlines the overall process. A recent National Organization of Mortgage Field Services survey identified a significant exodus of vendor partners that provide direct boot-on-the-ground services. Are you experiencing challenges maintaining necessary labor or vendor partnerships, and if so, how are you combatting this? ere's clearly been a shift in the industry as many third-party vendor partners that perform field services are leaving the property preservation space entirely. We first saw this as early as 2017 when foreclosure rates were low, but once the pandemic and foreclosure moratoriums hit, this vendor exodus completely accelerated. It's been a balancing act for MCS, but we are successfully navigating through it. Historically, companies have provided preservation services through a third-party network of vendors and contractors. Today, MCS is innovating the property preservation industry by establishing a complementary network of regional service centers staffed with its own employees, creating a hybrid service model to help support client needs. It may be beneficial for servicers to consider a provider that can self-perform and has an extensive, nationwide network of vendors so that all of their property preservation needs are covered. A model like this enables a provider to offer the flexibility of a regional vendor with the benefits of scale you would get from a national company. It also promotes increased quality control, code compliance, speed of work, and customer satisfaction, as well as in-market support and oversight for third-party vendors. How are you and your team working to improve efficiencies within the industry to attract and retain new talent and improve the economic model for those that have remained in this sector? MCS is always looking for great talent and new ways to attract and retain the best in the industry. But with over 11 million jobs open in the United States and only 6 million unemployed workers, the challenge has never been greater. At MCS, our secret weapon is the amazing culture we've created. Our recruiting team truly believes MCS is a great place to work, which makes telling our story an easy task. e best candidates can be incredibly choosey today and are seeking more than just a paycheck. We've found that employees want to work for a brand they are proud of and can believe in. More than ever, they're also looking for a company that matches their belief system with a job that allows them to have a little fun along the way. MCS is a dynamic brand, and our social media consistently highlights the fun we have as well as our commitment to the communities we serve. We focus heavily on our company values, spelled out as SHINE: service, hustle, integrity, nurture, and excellence. is isn't something we just put up on the wall. SHINE is at the core of everything we do for customers, service partners, and teammates. is has formed the foundation for MCS as a company and we've been able to successfully attract and retain the very best industry talent as a result. Are there any other critical challenges you are facing heading into 2023? If so, how are you navigating and preparing for these? Most industry professionals believe there is going to be increased foreclosure volume going forward because of the economic pressures the country is facing. We don't know precise numbers yet, but the expectation is there will be a greater number of foreclosures in the coming months than are taking place today. e property preservation business is at a crossroads right now—increased foreclosures are imminent, and yet much-needed vendors are continuing to leave the space at a high rate. We believe this will be the biggest issue for MCS in 2023, as well as the entire industry, but we are prepared through our hybrid service