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38 USING TECHNOLOGY TO IDENTIFY AND MANAGE VACANT AND ABANDONED PROPERTIES Vacant and abandoned properties create a risk for residential neighborhoods becoming blighted through the lack of adequate maintenance and security. No longer are densely populated cities the primary location for foreclosed and vacant properties; suburbs also see an inordinate amount of unoccupied homes. e default mortgage servicing industry has seen ordinance requirements including insurance, property signage, interior inspections, and property rehabilitation plans introduced. Now, field services and asset management providers must also keep up with the evolution of vacant property registration. Challenges Faced By the Default Mortgage Servicing Industry For the default mortgage servicing industry, which includes loan servicers, field services, and asset management companies, keeping up with each city's requirements remains challenging. Maintaining property in default prior to foreclosure falls under a different set of local, state and federal laws than the maintenance of property post-foreclosure, often called real estate owned or REO property. REO property is foreclosed property owned by the loan servicer after a mortgagor has defaulted on the loan. Simply put, when the mortgagor still owns the property (pre-foreclosure), a loan servicer may have limited access and authority to perform property maintenance if the home is occupied. When a mortgagor is 45-60 days in default, the loan servicer can begin inspecting the property, but cannot order property maintenance work on an occupied home. e default mortgage property inspector reports on visible property condition at predetermined or required intervals and sends that information to the loan servicer. Often, a third-party field services provider orders the work and sends property condition reports to the loan servicer. e work performed by the property inspector is vital to the loan servicer. Accurate and time-stamped information from the field inspector helps the loan servicer make important decisions on how to maintain the integrity of the property. e inspector reports determine whether the property is occupied or vacant. e point at which a property is determined to be vacant is crucial. To this end, the default mortgage servicing industry must understand each municipality's definition of "vacant" and provide indisputable proof that the property is— or is not—vacant. Who + Where + When + Condition = Identification and Compliance Provisions of the Dodd-Frank legislation, enforcement actions by the Consumer Finance Protection Bureau (CFPB), and other regulatory guidelines hold financial institutions accountable for the actions of third-party provider's contractors. What was not available during the onset of legislation was industry-specific technology that provided a standardized method to track, audit and provide oversight of the work performed by default mortgage inspectors and contractors. Aspen iRecord™ addresses the lack of an industry-wide compliance standard. e system was designed to provide a secure portal to help the default mortgage servicing industry manage a multitude of compliance requirements. Aspen iRecord™ provides the industry with a standardized background check process and scoring model for field service professionals visiting properties, and an audit process, in addition to real- time proof that the service was carried out, and property condition reporting. e ability to provide an independent internal and external audit of this highly regulated industry is key to mitigating risk and proving legislative compliance while protecting communities and consumers. Maintaining the integrity of property condition reporting has been a concern of regulatory and consumer protection agencies. e Aspen iRecord™ user-interface goes to great lengths to preserve inspector and contractor anonymity while providing better oversight of records management. e system has been vetted for compliance with regulatory guidelines and default servicing industry practices, alleviating the need for multiple and varied records management systems. Simply put, Aspen iRecord™ provides a singular portal that works alongside existing technologies and data flows and is implemented with minimal business disruption. e portal also delivers real-time reporting, so businesses can make informed decisions as to a property condition as early as possible in the process. As an independent, privately held technology so- lutions provider to the financial services industry for over 17 years, Aspen Grove Solutions designs easy-to use solutions that directly address industry needs. Aspen iRecord™ is a complete vendor management and compliance solution that ensures appropriate controls and procedures exist for all parties to man- age their networks, vendors, and contractors, to en- sure the right people are contracted to undertake this vital inspection work, and that abandoned properties are accurately identified and managed. If you are interested in learning more about how Aspen iRecord™ can help your organization or industry develop and improve vendor compliance management, log on to www.aspenirecord.com or email sales@aspengrovesolutions.com. SPONSORED STORY