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54 Fair Debt Collection Practices Act (FDCPA), Gramm-Leach-Bliley Act (GLBA), and Unfair and Deceptive Acts and Practices (UDAAP) are also required. Like virtually all mortgage businesses today, agents are more heavily scrutinized. e metrics imposed by servicers with whom they work have increased significantly; they are no longer requesting a certain number of agents to complete the work—they are requesting the best agents. It is another level of pressure for which they must be prepared and make changes to meet. ese added certifications and evaluations of agents come on top of a job that is already extremely demanding. Understanding the laws and passing a test is one thing, but it is another for agents to arrive at the homes of borrowers who often do not want them on their doorsteps or to discuss personal financial matters with a stranger. In today's REO world, their skill sets should include the ability to talk to people in difficult financial situations with compassion and educate them on their options and the benefits of participating in a solution. e new REO agent role encompasses responsibilities that can be taught, as well as some that simply cannot. BEYOND SELLING HOMES e market changes occurring and the associated modifications to REO agents' job descriptions are completely out of their control. What they can control, however, is how they react and adjust their businesses accordingly. In the past, properties were abundant, and therefore many REO agents were needed; now agents have to market themselves entirely differently to set themselves and their businesses apart. Agents should be marketing themselves to banks and asset management companies. is includes demonstrating their willingness and ability to take on tasks that expand their role even beyond valuations, short sales, and door knocking. ey should be prepared to assume the responsibilities for rental analysis and even property management and rent collections. With so fewer assets currently available on which they can make commission, these activities can often be essential to supplement an agent's income just to keep a business going. An agent who was selling between five and 10 properties a month might need to conduct 100 BPOs just to keep the doors open. If asked to perform weekly property inspections, an agent is essentially spending time and money driving to the property, using gas, uploading photos—all for free until that asset is sold. ese new activities in no way equate to or substitute for the commission agents were once making from property sales. ey also require agents to spend their time and money upfront. To remain successful, agents cannot only count on commission anymore; they must be motivated to obtain the training and education to perform these and other jobs that might be outside their comfort zone. AGENTS ADAPTING e most difficult, yet critical adjustment for many agents is shifting their mindsets and their businesses from being 100 percent REO- oriented. e market fluctuations and current low inventory prove that marketing themselves purely as REO agents will not suffice for the lifecycle of a career in this industry. Simply put, it is much harder for agents to earn the income they once did. In today's era, the reality is that they are basically working for free until a property sells. For this reason, in addition to evaluating their marketing strategies, agents must restructure and redefine their businesses. ey can no longer employ teams to run their operations; many have made difficult decisions and laid off their staffs in recent years. Many are choosing to focus on selling retail and commercial assets. Agents who traditionally held a myopic view of their profession should instead see themselves as real estate service professionals, not solely REO agents or even just agents. CREATIVE FIXES It has become evident that putting a sign in front of a property is no longer sufficient marketing. Expecting to continue selling REO properties as a sole business function is not enough. We have seen agents find success by coming up with inventive and resourceful ways to either boost or change their businesses based on today's market. » Social media: Many are turning to social media to build their own brand, leveraging Facebook and Twitter to network with peers and reach clients and prospects. ey are also investing money to build more modern, attractive websites. » Building friendships with local and non- local peers: Successful agents today are viewing peers as potential partners, not just competitors. ey are benefitting from attending local networking events and there have even been groups and alliances created by agents pooling resources to sell more efficiently. Outside of local connections, building friendships with agents in completely different markets from their own is becoming advantageous, enabling agents to grow professionally and gain insight on strategies that might apply to their market. » Investor activity: Viewing investors as potential strategic partners creates an opportunity to find properties that agents can market to investment companies, which can be extremely valuable in certain areas where investment activity is high. ose with the proper certifications can even collaborate with investors by handling property management activities, such as monthly rent collections, property inspections, or valuations. » Purchasing properties: Some agents with the right resources are even seeing this changing market as a chance to profit by purchasing, repairing, and flipping homes themselves. is is especially viable for agents in areas where property values remain low. Real estate agents know their local market better than anyone else. Why not use that knowledge? e real estate industry as a whole cannot resist change—and this includes REO agents. ey must understand that their job descriptions might not be the same anymore, but the opportunities to have successful, flourishing businesses remain. Agents who quickly adapt to changes and challenges the market poses will see the most long-term success. "The market changes occurring and the associated modifications to REO agents' job descriptions are completely out of their control. What they can control, however, is how they react and adjust accordingly."

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