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» VISIT US ONLINE @ DSNEWS.COM 35 sourced from the inspectors' mobile devices. Property damage is categorized as light, moderate, or heavy and is sent to the servicer to help establish the best course of action. Heat maps are created based on inspection data as a visual aid for servicers, along with custom reports to help assess property damage. An important thing to note after major disasters strike is that inspection volumes increase dramatically for property preserva- tion companies. In some cases, this means an almost 1,000 percent increase in the number of inspections per month. To prepare, the preservation companies' systems and infra- structure must be built to rapidly scale up. is also is the case for the preservation companies' inspector and contractor networks, who face additional increases and challenges when a disaster occurs. PLAY 3: BUILDING YOUR SPECIAL TEAMS Following the storms or disasters, property preservation companies need to assess the needs of their inspector and contractor networks in that area. ey should evaluate capacity, number of crews available, and other resources needed. Often, because those inspectors and contractors in the area of the storms or disasters have been impacted themselves, preservation companies need to reallocate resources—move internal staff or field quality control (FQC) representatives into impacted areas or relocate inspectors from other areas to assist for an estimated 30 to 60 days. Internal staff members from preservation companies are there to help with business continuity within the existing network when disasters strike. ey ensure vendors have what they need in the field, including genera- tors, clearboarding, and cleaning supplies. In Puerto Rico, FQC representatives took satellite backpacks with built-in Wi-Fi to inspectors to help submit inspection results and photos. However, it is almost impossible to prepare for a Puerto Rico-type disaster. e FQC represen- tatives had difficulty finding hotels or condos with electricity and running water. Many of the hotels were using generators that had to be shut down for several hours a day for maintenance. While in Puerto Rico, Safeguard's eight FQC representatives hosted multiple on-site recruit- ing events for the company's contractors in the area. ey also offered training for current contractors filling in as inspectors and for those who had been recruited. But all of the added help and supplies are not without an additional cost. Postimpact surge pricing or flexible prices for products or services based on current market demands include the costs that out-of-area vendors incur because they are working remotely and must pay for things like hotel stays and food, and may take extra time for the inspections because they do not know the area very well. Also, the scope of inspection is greater after a disaster or major storm, and there are limited supplies or increases in daily expenses, like fuel, due to shortages. Several weeks after a major storm or disaster, property preservation companies prepare to complete insurance loss inspections for their mortgage servicing partners. ose borrowers who intend on remaining in their properties typically receive insurance money to make re- pairs. Property preservation companies complete inspections to verify the progress of the repairs on behalf of their mortgage servicing partners. INDUSTRY-WIDE PLAYBOOK NEEDED Managing portfolios following major disas- ters is a challenge for mortgage servicers and their property preservation partners. Properties with current loans are particularly challenging because there are no guidelines or rules put in place like there are for vacant and abandoned properties. Questions arise such as, Should in- spections be completed during the 90-day for- bearance period? What about the initial secure? And will the investors reimburse for inspections on current assets during major disasters? e industry needs to establish a disaster playbook to address these complex issues and to be proactive before disasters hit. is serves as a good opportunity for investors and the industry to come together to draft formal policies ad- dressing current and delinquent loans beyond standard property preservation guidelines when a disaster occurs. Mortgage servicers and their property preservation partners also need to continue to work with the investors so we are calling the right plays in the event of a natural disaster. "After a major disaster, it is critical for property preservation companies to have regular conversations with their servicing clients to ensure everyone has the latest information and is on the same page. An effective best practice after the disaster hits is for the preservation company to host industry calls so their staff can have direct conversations with key people in the servicing world."

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