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MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 26 December 2024 F E A T U R E S T O R Y PRESERVING THE AMERICAN DREAM Industry experts from Five Star's Property Preservation Executive Forum discuss the trends and challenges facing the field services sector as we head into the new year. B y DAV I D W H A R T O N T he property preservation industry stands at a crossroads, shaped by shifting market dynamics, regulatory changes, and the uncertainty of a recent Presiden- tial election. As mortgage delinquencies remain relatively low but economic uncertainties grow, property preserva- tion companies are facing increasing pressure to maintain efficiency, ensure compliance, and adapt to the evolving needs of servicers and communities. At the heart of this transformation are the leaders of Five Star's Property Preser- vation Executive Forum, a collective of industry veterans tasked with navigating these complex waters. In exclusive interviews, executives representing several PPEF member companies share insights into the trends reshaping the field, from the growing role of technology in field services to the mounting labor and cost pressures that threaten profitability. Kimberly Dawson Director, Single-Family Real Estate Asset Management, Fannie Mae Q: What are the biggest chal- lenges facing the property preservation space and how you do business? How are prop pres companies having to adapt to meet these challenges? At Fannie Mae, we've found one of the biggest challenges to be increased dispersion of properties—properties have become less centralized, with increasing levels in rural areas. The average distance between properties is approximately 10 miles, requiring more travel time to properties. This dispersion poses logistical challenges and increas- es operational costs for our vendors. The increased dispersion of properties, especially in rural areas, combined with trending labor shortages in the property preservation space, has created challenges in sourcing labor. This situation is exacerbated by the fact that smaller pools of suppliers are willing to undertake projects in these dispersed and rural areas, while there are limited sources of labor in some circumstances. Q: How have market con- ditions, such as shifts in interest rates or the overall economy, impacted the property preservation landscape this year? What changes do you anticipate in 2025? Fannie Mae is not anticipating a substantial shift in the property preser- vation landscape in 2025. However, the current challenges will likely continue. We frequently visit markets across the country to meet face-to-face with vendors and walk properties, gaining in-depth looks at the unique challeng- es they encounter daily. Fannie Mae promotes a collaborative environment for questions or concerns from our vendors. These engagements allow our vendors opportunities to openly discuss roadblocks and make suggestions to address specific challenges they may be having. Operational and material costs, especially those that are influenced D A V I D W H A R T O N , Editor-in-Chief at the Five Star Institute, has 20 years' experience in journalism and an extensive and diversified portfolio of freelance material, with published contribu- tions in both online and print media publications. He has been with Five Star since 2017, initially serving as an Online Editor. Wharton previously worked at Thomson Reuters, a multinational mass media and information firm, focusing on producing media content related to tax and accounting principles and government rules and regulations for accounting professionals. Wharton is a graduate of the University of Texas at Arlington, where he received his B.A. in English and minored in journalism. He can be reached at David.Wharton@thefivestar.com..