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» VISIT US ONLINE @ DSNEWS.COM 29 SERVICING GROUP CALLS FOR COOPERATION ON VACANT HOUSING POLICIES e National Mortgage Servicing Association (NMSA) has issued a report calling on all federal agencies to work together in conjunction with the mortgage servicing community to institute policies that standardize the procedures, definitions, and best practices surrounding the treatment of vacant and abandoned residential properties, which, according to the report, "hurt communities and families." e NMSA issued a report in July calling for an industrywide discussion of policies that would standardize procedures, definitions, and best practices for vacant and abandoned properties. Under current law, many abandoned properties are subject to the same lengthy foreclosure process as occupied ones, resulting in extended vacancy and other considerable problems. e report was, in part, developed with input from several NMSA member organizations, including Wells Fargo, Bank of America, BankUnited, Selene Finance, and others. "e concerns presented by the proliferation of vacant and abandoned residential properties are, at their core, consumer protection issues," said Ed Delgado, President and CEO of the Five Star Institute and Ex-Officio of NMSA. "ese properties can potentially have a devastating effect on surrounding communities because they often become magnets for vandalism, squatting, and violent crime. In extreme cases, these properties have even led to the tragic loss of life. Surrounding properties can expect to experience a loss of value—a significant detriment to the primary source of wealth for many American families." According to Ray Barbone, NMSA Chairman and EVP at BankUnited, vacant properties pose a problem for both homeowners and the areas in which they live. "Vacant and abandoned properties are a complex and difficult issue that is detrimental to surrounding homeowners and communities," Barbone said. "e issue is evidenced by recent legislation in Ohio and Maryland. However, the industry remains challenged in protecting those impacted due to inconsistent and disparate definitions and guidelines relative to such properties. e NMSA hopes that this proposal for standardization of procedure, definition, and best practices is a catalyst for dialogue that leads to the development of an effective approach to dealing with the issue of vacant and abandoned properties across the country." ough some individual states have proposed solutions to remedy the blight caused by vacant and abandoned housing, these have yet to be effective. "ere is a disconnect between state and local governments that prevents clear lines of communication and a mutual understanding of the depth and breadth of the issue, thereby causing uneven treatment and disparate results," the report argued. "In the end, consumers and the communities are the ones who suffer." Delgado outlined the problem in a letter addressed to the leadership of HUD, CFPB, the U.S. Department of the Treasury, OCC, Fannie Mae, and Freddie Mac. Delgado said he hopes the letter will spur interagency dialogue to address the ever-growing problems that vacant and abandoned properties pose. "e NMSA is ready to partner with all federal agencies in the development of common- sense solutions that alleviate the tremendous strain that vacant and abandoned properties place on our communities," he said. e National Mortgage Servicing Association is a nonpartisan organization driven by top-level executive representation from the nation's leading mortgage servicing organizations for the purpose of effecting progress and change on the key challenges that face the mortgage servicing industry. By bringing together decision-making executives from across the nation, the NMSA drives the conversation on shaping the American housing industry for the benefit of homeowners. "Vacant and abandoned properties are a complex and difficult issue that is detrimental to surrounding homeowners and communities." —Ray Barbone, NMSA Chairman and EVP, BankUnited