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MortgagePoint ยป Your Trusted Source for Mortgage Banking and Servicing News 30 December 2024 F E A T U R E S T O R Y Q: How is Safeguard Proper- ties adapting to the need to service more remote/rural properties, necessitating more "windshield time?" Servicing remote areas is a priority at Safeguard Properties, which utilizes route-optimization tools and partners with local contractors to minimize extensive travel times. By recruiting professionals within these communities, Safeguard maintains its high service standards while addressing the unique logistical challenges that arise in rural areas. We have also worked with Inves- tors and Insurers to review their specific requirements on inspection completion windows. Creating flexibility here will allow for denser routes and significantly help reduce windshield time. Q: Is Safeguard Properties maintaining a sufficient workforce? How do you recruit and retain talent? Retaining skilled contractors re- mains a focus for Safeguard Properties. The company supports recruitment through competitive compensation, flexible work schedules, and a com- mitment to ongoing training. To attract local talent, Safeguard targets recruit- ment efforts in high-need areas and provides a supportive structure through a mobile-enabled platform, ensuring seamless communication and coordina- tion with contractors in the field. Q: What strategies is Safeguard Properties using to mitigate the risks of vandalism, theft, or squatting in vacant properties? Safeguard Properties proactively im- plements security measures, including regular inspections, remote monitoring, and collaboration with local stakehold- ers, to protect vacant properties. By engaging local communities and law enforcement and maintaining a consis- tent presence at properties, Safeguard reduces the likelihood of vandalism and enhances property security. Q: What are the keys to navigating local, state, and federal regulations impacting the property preservation industry? Safeguard Properties stays at the forefront of compliance by implement- ing advanced regulatory tracking sys- tems, supported by a skilled legal team. Engaging with industry associations helps Safeguard maintain up-to-date knowledge and adapt swiftly to regula- tory changes, ensuring compliance at federal, state, and local levels. Q: What are the key compli- ance issues that property preservation companies need to focus on? Compliance issues remain a central focus, including HUD and GSE guide- lines, environmental handling protocols, and local property maintenance re- quirements. Safeguard is committed to embedding sustainable practices into its processes, with an eye on both regulato- ry and environmental standards. Q: How is climate change im- pacting property preserva- tion, particularly in regions prone to natural disasters? Climate change has amplified the risk of natural disasters, particularly in hurricane-, flood-, and wildfire-prone regions. Safeguard Properties is prepared for these challenges through tailored response protocols and the use of resilient materials in repair work. The company also provides specialized training to contractors for managing weather-related damage, emphasiz- ing readiness and resilience across its operations. Tony Maher EVP of Business Development, Cyprexx Services, LLC Q: What are the biggest chal- lenges facing the property preservation space and how you do business? How are companies having to adapt to meet these challenges? The labor market is still tight for skilled talent in inspector/contractor networks. Inspection pricing increases have created positive movement in attracting qualified inspectors back to the industry. PP pricing continues to be relatively stagnant, so finding operating efficiencies is key. With lower overall volumes, it is not as profitable for some vendors to invest time and money in growing their mortgage field services businesses. Compounding the problem of stagnant pricing and lower volumes is less concentrated, more rural properties coupled with continued inflationary pricing. Additionally, we see many properties in relatively decent shape sell third-party, which leaves the more severely damaged properties moving through the HUD Conveyance or REO pipeline. No adjustments have been made to FHA guidelines/timelines for this aspect of the changing model. To manage the more difficult properties, we have increased headcount and over- sight in the FHA space and are piloting several new initiatives to get more com- prehensive evaluations for these rural, heavily damaged properties at FTV. This helps us avoid delays, expedite bids, and reduce liability. One additional concern we have is Investors and servicers look- ing to property preservation companies for reimbursement of loss, many times years after ICC or disposition without defining the issues. Pushing liability without specific identification of what issues were not managed properly by the PP vendors is not sustainable.