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November 2023 » thefivestar.com 31 November 2023 C O V E R S T O R Y Even if the industry can attract the workers needed, that overall lack of inventory will remain a challenge. A recent ATTOM report examining "zombie homes"—or vacant homes in pre-foreclo- sure—stands at only 8,903 units nation- wide. Non-owner-occupied investment properties were found to total 23,638,105, of which 842,497 were vacant. ATTOM found that the national number of bank-owned properties totaled 14,989 of which 15.85% were vacant (or 2,376 units). The report also reveals that 320,765 residential properties in the U.S. are in the process of foreclosure in Q4 of this year, up 1.7% from Q3 2023, and up 12.8% from Q4 2022. While the trend lines are moving up- wards, it's a far cry from the inventory levels seen in the past, and many of the vendors we spoke to were insistent that, absent increased inventory levels, the headwinds discussed above will continue to hamper the prop pres industry unless issues such as allowable fees are further addressed. Chad Mosley, President of the Mortgage Services division for MCS (founded in 1986), says his company has taken a unique approach to property preservation servicing with the rollout of a national self-performing network that also assists with recruiting and support- ing local vendors "Over the last 18 months, MCS has built out an extensive network of self-performing capabilities in 25 markets across the country, employing a 'hybrid' model that combines our own expe- rienced employees with an expansive network of thousands of local service partners. Within these markets, our own team members are able to assist with recruiting, vetting, supporting and part- nering with the local service provider network, and ensuring work is complet- ed as specified. Combined with our use of cutting-edge next-gen technologies, the initial results of this new approach to servicing show maximized efficien- cies and substantial enhancements in transparency, quality control and code compliance, while also building relation- ships and helping to support our service partners who know the local market and perform the majority of our property preservation work." Mosely also noted, "MCS also ap- plauds Fannie Mae and Freddie Mac for their continued leadership and proac- tive approach to addressing property preservation issues head-on. We look forward to learning of HUD's proposed changes as well, which will benefit the sustainability of our entire industry and is instrumental in ensuring our clients' properties are maintained and preserved to the highest standards." In addition to overall low volumes, Denia Ray, VP of Property of Preserva- tion for ZVN Properties Inc., founded in 2004, also points to HUD's Claims Without Conveyance of Title (CWCOT) program and Second Chance sales, which she says "avoids the conveyance process in its entirety, if there is a winning bid. The properties that do not sell are typically in poor condition and are in scattered and often rural areas, with no concentration in any one market. The investors have not adjusted their SLA [service level agree- ment] timeline expectations to account for these additional challenges." Maher echoed Ray's concerns. "This is a significant challenge from a preservation standpoint due to the short timelines com- bined with the stagnant allowable fees. The bid/appeal process with FHA can also be very cumbersome and time-consum- ing. The combination of these factors can lead to timelines surpassing the claims due date, which leads to additional liability on the servicers and field service companies." FHA, for its part, says it recognizes the need to recalibrate its fees and other processes to account for the realities of today's market, while also balancing the need to maintain alternatives to tradi- tional conveyance processes, such as its Claims Without Conveyance of Title pro- gram and "first look" REO sale options for owner-occupants. Sarah Edelman, Deputy Assistant Secretary for FHA's Office of Single Family Housing, said, "We've spent a lot of time over the last two years re-tooling our property disposition options to make them fairer for those owner-occupant buyers and non-profits. But we are equally focused on making sure that these properties are well-maintained. That involves revisiting the allowable fees and processes for professional property preservation and protection." Brought to you by & MAY 2023 Magazine Y O U R T R U S T E D S O U R C E F O R M O R T G A G E B A N K I N G A N D S E R V I C I N G N E W S In this Issue DEBT AS DIVERSIFICATION Nonperforming loans and real estate owned (REO) assets as alternative asset anchors. BRACE FOR THIS TRIFECTA OF RISK Why zero repurchase risk is only the result of the new normal. MAKING STRIDES Here are the keys to accelerating proptech and real estate technology through venture capital. MortgagePoint examines the impact of the recent bank failures on the mortgage space, with a cross-section of experts imparting their perspectives on how to avoid similar issues in the future. Subscribe to MortgagePoint and MortgagePoint Digital now! Call 800.856.8060 to take advantage of our special introductory offer! Experts you trust. People you know. News you want. MortgagePoint is putting essential mortgage market news at your fingertips with our new digital edition, now available online via your smartphone, tablet, or computer. Enjoy the magazine at your desk, and tap into MortgagePoint Digital's easily accessible platform anywhere, anytime. Committed to giving originators, servicers, and all lending professionals access to smarter perspectives, MortgagePoint believes it's time to think differently about the mortgage industry. Because the American Dream is evolving . . . are you? Brought to you by & JUNE 2023 PROMOTING D&I IN THE MORTGAGE INDUSTRY NAVIGATING THE WILD, WILD WEST OF DIGITAL CLOSING PROVIDERS MORTGAGE LENDERS ARE MOVING QUICKLY TO ADOPT DIGITAL CLOSINGS. Also in this Issue: RETHINKING REVERSE MORTGAGE LENDING LENDERS TODAY ARE LOOKING AT REVERSE MORTGAGES AS ANOTHER LOAN PRODUCT TO ADD TO THEIR MENU OF OFFERINGS. Better Together Magazine Y O U R T R U S T E D S O U R C E F O R M O R T G A G E B A N K I N G A N D S E R V I C I N G N E W S Brought to you by & JULY 2023 Keeping Afloat TIME TO DOUBLE DOWN ON THE CONSUMER EXPERIENCE The sales numbers may not be where lenders would like to see them yet, but people do want to buy, according to new research. Here's what homebuyers are saying and what lenders can do to win their business. WHEN A SERVICER CAN TAKE POSSESSION OF A PROPERTY Attorney Joseph T. McCormick details a recent Ninth Circuit opinion on when a servicer can take possession of a property under the Oregon Unlawful Trade Practices Act. COLORADO SUPREME COURT WEIGHS IN ON BANKRUPTCY & FORECLOSURE A recent Colorado Supreme Court decision held that a discharge in bankruptcy does not trigger the statute of limitations on a claim to foreclose based on a deed of trust. RON & FRAUD: THERE'S MORE TO THE STORY While a small fraction of RON transactions may involve fraudulent activity, we have advanced tools at our disposal to stay ahead of bad actors. Magazine Y O U R T R U S T E D S O U R C E F O R M O R T G A G E B A N K I N G A N D S E R V I C I N G N E W S MortgagePoint speaks with mortgage servicing execs from BOK Financial, Carrington, the NMSA, PHH Mortgage Corporation, and Servbank about the unusual times and unusual opportunities the industry faces midway through 2023.