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and submittal by using the latest approved cost estimator to automatically resolve nonconforming repair/maintenance bids consistent with investor and insurer specifications. By confirming bid accuracy prior to submittal, this tool helps servicers speed work completion and reimbursement cycles, drastically reduce bid rejections, and lower administrative costs. Data entry is also an important piece of the conveyance challenge. This solution provides bid data entry into the investor/insurer's portal as part of the overall default services platform. Notification of completed bid entry is automatically posted to client's secure section of the service provider's workflow management system. Using the workflow management portal, mortgage servicers then simply accept and submit the completed bid. The result: A simpler, faster, and more accurate bid process that can go a long way toward relieving compliance worries, reducing processing time and easing workflow bottlenecks. PROPERTY DISPOSITION Milt Shaw SVP of Strategic Relationship Management PEMCO LIMITED False Hopes? The buzz surrounding the so-called 'recovery' may not be all that it's cracked up to be. Reading articles about the current and future market is always of interest to me since for every positive article, there seems to be a contradictory article. By nature I am an optimist, but in the case of our housing markets, I feel that we have a number of factors impacting our "housing recovery" that are not favorable for sustaining positive momentum. Compliance with a Local Flavor I have felt from the beginning of the Technology is also helping servicers meet recovery—which I refer to as late 2012/early a growing number of locally-based compli2013—that the hype around the improveance challenges. For example, communities throughout the country now require registra- ment in many of our markets (sales and dollar tion of vacant properties. With municipalities values) was artificial and not sustainable. The shortage of properties coming on the market continually enacting or modifying their own and the low, although rising and then decreasversions of such regulations, compliance can ing, interest rates created greater demand be frustratingly complex. Technology coupled with strong field pres- than supply in many areas and consequently ence is providing the answer. Special software multiple offers in many cases, resulting in a perception that we were and are seeing automatically alerts servicers to changes and provides direct access to an interactive nation- improvement. If we take a look at the economy, I am al vacant property ordinance database. The uncertain (at best) in the factors around where field services provider manages the registration process from start to finish—establishing properties will be coming from, other than a significantly reduced flow from servicers, rapport with municipal authorities, notifyHUD, Fannie, Freddie and the retail market. ing mortgagees, filling out and submitting For the retail market, there may be an increase registration forms, and coordinating actions in inventory, as the completion from foreneeded to assure compliance. closed and short sale activity has decreased. In 2014 and beyond, targeted technolOverall, interest rates will continue to be a ogy will play an important role in helping factor in market activity. Although they're low mortgage servicers reduce costs, protect their brands, and optimize customer relationships— today, any increase will have an impact. Dave Ness of Denver's Thrive Real Estate Group all while successfully navigating the maze of complex compliance issues facing the industry. was recently quoted in the Oct. 13 edition of Joe Bada has grown Five Brothers into a large Motley Fool, saying "For every 1 percent rise in interest rates, home prices must fall by 10 pernational firm offering a full range of regulatorycompliant field service solutions. His strong belief cent in order to maintain the same monthly in client-centered partnering has spawned a mortgage payment." With the unemployment nationwide network of highly effective customer rate still high and a continual loss of jobs in and field service representatives. many industries, who will be purchasing real estate as their primary residence? As of November 1, 162 of the 398 The market's servicers, including the govtotal required rulemakings under ernment entities, are all looking at methods Dodd-Frank had been finalized. of decreasing property going to foreclosure, Source: Davis Polk & Wardwell LLP short sales, deeds-in-lieu, modifications, and 52 a significant number of note sales. In many cases, when properties do go through the foreclosure process, they immediately go to auction and are often purchased by investors rather than owner-occupants. In addition, the REO-to-rental phenomenon has grown significantly, which impacts the number of properties coming on the market as opportunities for individuals to become owner-occupants. Where does this leave us in accurately forecasting what 2014 has in store? I don't believe there will be any type of significant change … there will be fluctuations, but no significant change (i.e., pretty much unchanged). Should you have more clarity about the year ahead, I am interested in hearing your opinion. You can share your thoughts by sending them to milt.shaw@ pemco-limited.com. With a background in asset management and corporate relocation. Milt Shaw, GRI, CRS is responsible for establishing and developing relationships to help PEMCO Limited and PEMCO Realty expand their influence and reach within existing and new markets. TITLE AND SETTLEMENT Ryan Peterson President and CEO AVENUE 365 LENDER SERVICES Taming the Dragons The hurdles ahead may be monstrous, but a single focus on bettering your business may be enough to slay the challenges before they bite. One of my sons' favorite bedtime books is There's No Such Thing As a Dragon by Jack Kent. The premise of the book is that a little boy wakes up to find a baby dragon in his room. He sees it and believes in it, so it is a friendly pet. His mother, on the other hand, refuses to acknowledge the dragon, and therefore the it grows bigger and more problematic, finally taking over the whole house. She finally looks him in the eye and believes in him, and the dragon shrinks back down to friendly pet size again. I view the current challenges facing our industry the same way. The marketplace as we know it is changing and may never look the same again. The regulatory environment is becoming significantly more rigorous and demanding

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