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58 all the people displaced by this horrible disaster, and we are happy to do our part." But regardless of the efforts the industry is making, the most important task to undertake is to remain proactive, rather than reactive. AN UNCERTAIN, BUT OPTIMISTIC, FUTURE e housing market is a deep-seated aspect of the U.S. economy, and the aftermath of these hurricanes will affect more than just the housing market. According to the Federal Reserve's most recently released Beige Book, the future will indicate just how greatly disruptions in energy production as well as material distribution will affect the economy. A total of 15 refineries shut down in affected regions, and prices rose in freight, lumber and steel, further bringing questions as to whether or not interest rates will rise before the end of the year. For servicers and property preservation managers, however, the immediate focus should to be on the short-term loss mitigation, as well as working together with borrowers toward a common goal: preventing further damage and getting homeowners back into their houses. Particularly in Houston, where flooding is the main cause of damage to a majority of homes, mold can single-handedly ruin a property, put a family on the street, and have further implications on the community, derailing the local housing market. "So, the properties themselves—we know what happens when a property is exposed to mold and not properly treated," said John Vella, Chief Revenue Officer of Altisource. "e value of the home obviously declines, which declines home values in the local market, which could cause a bubble. en when it comes to new financing in these hard-hit areas, there will be more risk pricing, which could impact the ability to get loans in those local areas that have a propensity for flooding, propensity for storm damage. at could impact the market as well." Wes Iseley, Director of Carrington Holding Company, believes that the current state caused by the hurricanes is something the industry has never seen, and requires cooperation, as well as an audible from the usual guidelines and modes of operation. One major concern, especially in the Houston area, is the chance of families abandoning their properties all together. "I'm really glad to see that the community itself, in Texas, especially, has kind of pulled together and you see that everyone is working together, and the whole community has come to take out the drywall, get everything out. So, I think that's really positive. I think that for some people, it's questionable—it's a little bit challenging. I think there's going to be some abandonment, but I think you're seeing all the servicers, all the agencies come together to try to solve the situation." Looking forward to the end of foreclosure moratoriums, and the time when the industry is going to have to start dealing with the financial fallout of Harvey and Irma, Iseley is confident in the future outlook. "I think the industry is better prepared than it ever has been, compared to 10 years ago. e loss mitigation solutions and waterfalls and everything else—people know how to address that, so hopefully, our priority is keep the customer in the home." Brian Montgomery, recent President Trump nominee to head the Federal Housing Administration, spoke on the matter at the 2017 Five Star Conference and Expo in Dallas, Texas, outlining his thoughts on how the industry should approach solutions. e first phase is, first and foremost, rehousing those displaced, while also assessing capital losses. en the industry needs to start thinking about rebuilding, along with restoration efforts. "It is an understatement to say the amount of damage is massive," Montgomery said in his speech. How will these hurricanes further impact the mortgage industry? According to experts, the answer will be highly based on region. "From the forecasts it appears that the damage from Irma will more generally stem from wind damage, whereas Harvey, like Katrina, has come to be known for the flooding it caused. at significantly changes the damage analysis and remediation processes. It appears that the seriously-affected areas of Irma will be spread over a much wider geographic area– potentially several states. Obviously, that increases the number of affected loans and local economies involved," Brosnan said. A WORD OF WARNING While the immediate effects of the two hurricanes are vastly different in the ways the industry must go about remedying them— Harvey with flood damage, Irma with wind damage—there is one recent example that has skirted mainstream media, and the housing industry's attention, and that is the effects of Hurricane Maria. Hurricane Irma was expected to envelop the state of Florida, but changed trajectory in its final days before making landfall, sparing much of the Florida mainland from the most violent parts of the storm. is wasn't the case for Hurricane Maria, which brought Irma-force winds and Harvey-level flooding to Puerto Rico that have been described by officials as "near apocalyptic." Governor of Puerto Rico, Ricardo Rosselló, has warned that the island could be facing a humanitarian crisis. Hurricane Harvey and Irma were unprecedented, and there's nothing to say that the future won't hold additional unexpected crisis. If industry experts agree on one thing it's this: unity, rather than division, will help weather the storm. "It is an understatement to say the amount of damage is massive." - Brian Montgomery, Vice Chairman of The Collingwood Group and President Trump nominee for FHA Commissioner

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