DSNews delivers stories, ideas, links, companies, people, events, and videos impacting the mortgage default servicing industry.
Issue link: http://digital.dsnews.com/i/567998
83 » VISIT US ONLINE @ DSNEWS.COM SPONSORED STORY Inactive utilities contribute to property damage. An inactive sump pump or air conditioner can cause moisture issues. is will increase the occurrence of mold. Mold is the most common problem we see across all regions. Roof issues are consistent in all markets and are a major source of water intrusion and mold. As a result of Alacrity's efforts, we have seen an important shift in roofing renovation projects from replacement to repair. Top renovation strategies are baths and kitchens. Although the desire is to repurpose cabinets with new hardware, our data shows difficulties because of unseen water damage from leaking appliances and kitchen sinks. Alacrity's data shows that mere aesthetic improvements are trending downward. e white box approach no longer is acceptable and local, community-driven rehabilitation is becoming the norm. Paint, flooring, and curb appeal continue to be the leading areas of client satisfaction. Clients never want the property to look like an REO asset. Code violations continue to be an increased focus in rehabilitation projects. Typical violations include debris left in visible view; starting work without a permit; closing out old permits from prior work; exterior cosmetic issues contributing to blight; and safety issues such as fences, driveways and walkways. Alacrity's data shows an emphasis on health and safety issues, both structural and environmental. For example, mold intrusion can cause delays in sales. Unpermitted additions need to be removed unless a permit can be pulled. By maintaining close communication with the local contractor, Alacrity quickly can identify and resolve these issues. Electrical hazards also contribute to code violations and rehabilitation elements. Many older structures still have knob and tube wiring creating wiring issues. Alacrity breaks down data by regional markets throughout the United States. Regional situations have played a significant role in renovation approaches. For example, Hurricane Sandy on the East Coast resulted in infiltration of salt water on both wiring and structural elements. ese types of hazards are outside the normal scope of traditional rehabilitation but still need to be addressed. Furthermore, the age of homes in this region also can contribute to the rehabilitation focus. Foundation issues are most prevalent in the Northeast and Northwest. is past winter created new issues in the Southeastern region with the traditional crawlspace foundation. Increases in frozen pipes due to extended lower- than-normal temperatures now are a focus. Improper winterization with vacant homes still contributes to concerns with REO assets. What We Have Learned and Where We Intend to Go With It e main difference between insurance work and REO work is the forecasting. ere is no way to forecast needs in the insurance industry from one day to the next. Alacrity's insurance experience has taught us great lessons for dealing with daily issues, catastrophic issues, and everything in between. Alacrity Services was reminded of that this year with storms in the Northeast that dumped record snowfall throughout much of the area. Our insurance industry experience has taught us that communication is integral toward eliminating surprises. We also understand that time matters. e longer a project takes the more it costs. Our relationship with Lowe's provides great value and allows us to provide product procurement processes to assist our vendors and contractors. Contractor recruitment and retention is a critical and ongoing process. Alacrity Services devotes significant resources to recruiting and credentialing contractors. Our process includes extensive investigation into backgrounds, licenses, insurance coverage, and credit. Alacrity monitors these areas regularly even after a contractor joins the program. We know a contractor's business can change overnight. Our processes and procedures enable us, in many instances, to bring credit issues to a contractor's attention before it even is aware. Alacrity is proactive in communicating with contractors experiencing financial troubles because we know our clients expect projects to move toward completion as quickly and as smoothly as possible. e REO management process has been an exciting and educational journey for Alacrity Services. While we built our contractor network to service the property insurance industry, we have found that the skills translate well to the REO industry. e Lowe's relationship provides support for product selection using a national supply chain for local projects. is saves time and money and keeps the asset renovation timeline in focus. Alacrity Services' goal is to provide a best-in-class contractor network that fully understands the market conditions in local neighborhoods. Our goal is to provide our clients with fair and accurate bids focusing on making a property market-ready in a timely manner. Working with local contractors is essential to providing accurate bids. Local contractors are familiar with local factors such as codes and permitting timelines. Our priorities are to address blight, focus on health and safety, and ensure the preservation of the asset and the community. Jay Rebello summarized the value Alacrity adds to the REO market: "Alacrity has over 15 years of experience managing contractor networks on behalf of large national companies. ey have scale, and can flex their business model to meet the unique needs of their clients. Combining these capabilities with the product offering and supply chain of Lowe's creates a unique solution in the market—a national, turnkey repair/remodel solution." Alacrity Services is headquartered in Eugene, OR, with more than 115 employees. Please contact us at (866) 953-3220 or via email at Info@ AlacrityServices.com. "Alacrity has over 15 years of experience managing contractor networks on behalf of large national companies. They have scale, and can flex their business model to meet the unique needs of their clients. Combining these capabilities with the product offering and supply chain of Lowe's creates a unique solution in the market – a national, turnkey repair/remodel solution." —Jay Rebello, Vice President of New Business Development & Corporate Innovation at Lowe's