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MortgagePoint ยป Your Trusted Source for Mortgage Banking and Servicing News 32 December 2024 F E A T U R E S T O R Y tion is paramount for retention, com- pany culture, and our overall success. We embraced remote work and use it to our advantage as a benefit to recruit and retain talent. Recruiting nationally for specific FHA roles has improved our recruiting and ability to retain highly skilled employees. In addition, having a national, remote workforce has improved our business continuity readi- ness, mitigating risks caused by regional natural disasters. Q: What strategies are com- panies using to mitigate the risks of vandalism, theft, or squat- ting in vacant properties? This has always been a challenge in the preservation industry, but we have seen an uptick in the occurrence of these issues due to the conditions and locations of properties currently flowing through inventory. We find the best approach is timely and consistent recurring services coupled with layers of QC across both our inspection and preservation teams. This helps us identify and flag these high-risk properties as soon as we get eyes on them, and continuous monitoring throughout the property lifecycle. Often, we install DAWGS or exterior fencing (on select properties), but we have also gone as far as contracting with 24/7 security companies to prevent unlawful entry and vandalism. Moving quickly with our clients to determine the best course of action for each property via the options available, across both the preservation and servicing sides, is also helpful. Q: What are the keys to navigating local, state, and federal regulations impacting the property preservation industry? Timely and consistent monitoring, tracking, documentation, and imple- mentation are all keys to remaining in compliance with changing regulations impacting the preservation industry. We have a dedicated department, indepen- dent of operations, that is responsible for this function. They monitor AllRegs and other reliable sources to stay abreast of these changes and ensure compliance within our company. We also enlist the help of our in-house attorney and local attorneys as required to make sure we understand the new requirements and operate within them. Q: What are the key compli- ance issues that property preservation companies need to focus on? In property preservation, you must stay especially focused on the local reg- ulations that vary by municipality and county, and particularly in areas where we do not see regular volume it is easy for a new coordinator to overlook, or be unaware of, a new or existing law. To reduce human error in these situations, we have enhanced our system of record with flags and links to the requirements and internal SOPs applicable to proper- ties in those areas. This makes it much harder for coordinators to overlook key compliance issues that pertain to these smaller geographic areas. Q: How is climate change im- pacting property preserva- tion, particularly in regions prone to natural disasters? Higher insurance premiums and loss of coverage in the United States could increase defaults. Both climate change and normal weather cycles impact property preservation through- out the year, and certain areas are more prone than others when it comes to weather events like hurricanes, tornados, wildfires, blizzards, etc. This year was impacted significantly by Hurricanes Helene and Milton due to the strengths and paths of these storms. High ocean temperatures in recent years have resulted in explosive strengthening of these storms over short periods of time. This, combined with multiple-day path uncertainty, makes it more difficult to prepare for these storms proactively. As a preservation company headquar- tered in Tampa, we prepare thoroughly at the beginning of each hurricane season and have taken many steps over the years from a business continuity per- spective to ensure operations continue running smoothly before, during and after a storm. This includes a standby generator that powers our main office, redundant internet providers, a fully functional alternative DR site for our technology and systems, and the issu- ance of laptops to all users to allow the continuance of remote work regardless of evacuations or post storm damage in the area. Denia Ray SVP of National Field Services, ZVN Properties Inc. 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? The most significant challenges facing our industry right now include the reduction in qualified property preserva- tion companies, driven by the significant reduction in volumes and inadequate pricing, as well as scattered disburse port- folios, many of which are in rural areas. Our industry has been forgotten by FHA in terms of periodic pricing reviews and increases, to keep current with labor and expenses. FHA has had no measurable increase in property preservation fees in the past 20 years, which is relevant to the existing challenges as they have 55.67% of the seriously delinquent loans, with a default rate of 11.7%, per October's Hous- ing Market Indicators Monthly Update Report. The preservation industry has had to adapt by diversifying service offerings outside of traditional default, with many, including ZVN, pivoting into the Single-Family Rental repair and mainte- nance sector. Additionally, ongoing and locally focused recruitment is constant. Reference: Housing Market Indica- tors Monthly Update October 2024