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» VISIT US ONLINE @ DSNEWS.COM 47 Resolution ® . Being nice and listening attentively to customers was fine, but it meant nothing if you didn't solve their problem. Employees knew that the fastest way to lose a job at Safeguard was to not return a client's telephone call. One of the biggest industry issues Klein encountered when he first started the company was the lack of quality control. "I've always said there should be more than one set of eyes on a property. We decided early on it was important to use specialized vendors to perform each service," he says. Klein also stressed the importance of vendors capturing the proper photos as evidence the work was completed properly. "If we can't see it, it didn't get done," he added. ORIGINS OF INDUSTRY LEADERSHIP In the early '90s, Klein had an epiphany: Every client, every service in the industry faced the exact same issues. Moreover, everyone followed the exact same guidelines developed by HUD, Fannie Mae, Freddie Mac and the VA. "I realized that if one of my clients had an issue, all of my clients had the same problem," Klein explains. "So, if we came up with a solution for one of my clients that was the solution for the whole industry." With interest rates hovering in the upper teens, inspection of vacant properties wasn't the same crucial service it is in the post-housing crisis era. "e industry was not that concerned about a couple of foreclosures," Klein reveals with characteristic candor. "So, the field service industry in those years did not have a good reputation, and it was my job to change that reputation." After the initial-secure inspection of a vacant property, inspectors typically did a quick monthly visual inspection from their cars. Klein immediately outlawed "drive-by inspections" and mandated that inspectors perform complete visual inspections. Next, he wanted to overcome the inspectors' refusal to do interior inspections for fear of being accused of trespassing. Not going inside prevented inspectors from catching leaks or other deterioration that could seriously damage a property. Klein scheduled an appointment with HUD's director to inform her that he would no longer settle for visual, exterior inspections but would have his inspectors perform interior examinations monthly. When she reminded him about trespassing, he responded "According to the mortgage document, mortgage servicers have the right to protect their collateral interest. e interior inspection simply allows the mortgagee to see what is happening inside the property so they can mitigate potential damages before they become significant." "But why?" she demanded. "We're going to go inside the property to see it, so that we can save you millions of dollars in damages," Klein replied. She acquiesced, but informed him that they would have to do so on their own dime. Klein 1995 » 96,200 inspections » Alan Jaffa begins working for Safeguard in the Inspections Department 1997 » Hazard Claims Department created to manage insurance claims and high-risk properties » 936,600 inspections 2000 » 59 employees » Number of Inspections: 1,951,000 COVER STORY INDUSTRY INSIGHT INDUSTRY INSIGHT Robert Klein and Alan Jaffa conduct a lunch time strategy meeting in the 1990's.