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22 THE 2016 FIVE STAR CONFERENCE AND EXPO RECAP FORCE RALLY: REO AGENTS AND BROKERS PREPARE FOR THE FUTURE Charting the course for the future was the theme of the day when members of the Five Star Institute's Federation of Certified REO Experts (FORCE) convened for the 6th Annual FORCE Rally at the 2016 Five Star Conference and Expo in Dallas. e three-hour rally included presentations from some of the most elite REO agents and brokers and other industry stakeholders on trending topics within the REO industry and how to prepare for the future. Ruben Peña, President/Owner of TC Austin (Texas) Residential and chairman of the FORCE advisory board, moderated the event and provided his usually witty commentary throughout. Ed Delgado, President and CEO of the Five Star Institute, provided an update on the market. Delgado told the audience not to abandon the REO space, because REO is a byproduct of the industry that will never stop; the businesses that perform well in the current REO market— that is, one where volume levels are similar to those from before the crisis—are the ones that diversify their business model. Several experts from the industry spoke to the audience about various aspects on the state of REO. Sharon Bartlett, Executive Director of Industry Relations for the Five Star Institute, spoke about the most important benefits for FORCE members and partnerships that can benefit a brand. Jerry Mavellia, CEO of Guardian Asset Management, spoke about the importance of making lasting connections in order to grow a business. Randy Cecil, President of Truly Noble Services, spoke on expanding business by utilizing the relationship between agents and property preservation companies; Mercedes Henriksson, director of loss mitigation with Fannie Mae, spoke about the importance of being proactive as an REO agent and executing a top of mind strategy. Dennis Cisterna, CRO of Investability, spoke on where the hottest single- family rental markets are; Eddie Speed, founder of NoteSchool, talked about the importance of finding market inefficiencies when buying notes; Amy Sanchez, VP of Business Development with Prescient Asset Management, spoke on new government and private sector assets that are booming in the REO and single-family rental markets; Steve Liang, co-founder of MLS Deal Finder, spoke on the new software programs that make an REO agent or broker's job easier; and Rick Sharga, EVP of Corporate Communications with Ten-X, spoke on the importance of shifting real estate transactions to online from end to end. Mixed in with the speakers, the audience also heard from three panels that included various experts within the REO industry on topics such as investment and single-family rental, growing a business through networking, technology, and market insights, and best practices and strategies to excel in the "contact sport" of real estate. "The businesses that perform well in the current REO market—that is, one where volume levels are similar to those from before the crisis—are the ones that diversify their business model." THE 2016 FIVE STAR CONFERENCE AND EXPO RECAP SERVICING LAB: SERVICING AND ITS NEW REGULATORY CHANGES e combination of a changing business climate and regulations and federal oversight does not mean that servicers can't enhance their business portfolio, and the Servicing Lab in at the 2016 Five Star Conference and Expo provided servicers with tools to create effective servicing strategies and at the same time comply with the changing regulatory landscape. Topics at the lab included an update on Fannie Mae Servicing from Malloy Evans, VP, Single-Family Servicing and MHA, Fannie Mae; issues in loss mitigation; a consumer credit trends market update from Joanne Gaskin, Senior Director, Scores and Analytics, FICO; compliance concerns; and a presentation on doing business in D.C. from Tim Rood, Chairman, e Collingwood Group. e lab director was Michael Waldron, CCO, Bayview Loan Servicing, and the host was Edmond Buckley, President, Aspen Grove Solutions. "It's people, it's processes, it's technology," Waldron said of how to handle regulatory changes. "It's a resource model, and this is a resource-intensive business, whether it's monetary, or whether it's head count. We address it by devoting appropriate resources to a good foundation and a sound structure. We address it by being willing to attract and retain talent that's able to do the analysis, that knows the operations, that can work in conjunction with the business from a compliance and support perspective to add value to the platform." On the topic of avoiding regulatory scrutiny, Rood said, "Story matters, and servicers have to understand their audience in Washington. Success is possible, but it takes almost a metaphysical change in their view of patience. ey've got to work together. e industry itself needs to come together and decide on some compelling storyline that they can all agree to that has their mutual self-interests clearly identified. Get a clear, compelling story, stick with it, make some allies in the industry, and stop thinking that you are or that you can stay off the radar." Speakers other than those mentioned above included John Berczuk, Wells Fargo Corporate Trust; Eric Chader, e Collingwood Group; Ryan McGuinness, Freddie Mac; Gregory Lee, Loancare; Donna Clayton, LenderLive; Rachel Rodman, Arnold & Porter; Stephen Faulkner, Opexnow; and Laurie Maggiano, CFPB.