AACE 21st Annual Educational Conference Summary

November 12th, 2010

On November 3-5, Safeguard Properties participated in the AACE 21st Annual Educational Conference in Glendale, AZ.

American Association of Code Enforcement
21st Annual Educational Conference
Glendale, Arizona
November 3-5, 2010

Conference Overview and Safeguard’s Ongoing Contributions

“Tough times don’t last, but tough people do”, stated former American Association of Code Enforcement (AACE) President Carl Smart during the opening ceremonies of the national trade association’s 21st Annual Educational Conference.  AACE welcomed Officers and Inspectors from as far away as Alaska and as close as the host city, Glendale, for three days of sessions that help their members to “Grow Professionally, Gain Knowledge & Gather Contacts.”                                            

In spite of “tough times”, including, but not limited to, budget restraints, reduced department sizes, expanding responsibilities, and growing case loads, the conference supported the true resiliency of the code enforcement community by offering attendees a solid and wholesome agenda of the pressing and timely issues.  This diverse curriculum included a range of classes from terrorism to hoarding, human trafficking to green practices, and from to officer safety to professional development, touching on career transitions from the safety forces into code enforcement, effective communication, documenting and reporting, and sharpening the Spanish vocabulary.  With foreclosure and vacancy rates mounting within communities across the nation, and recognizing the critical need to inform its members, AACE offered a course with specific concentration on property preservation services.                                      

Michael Halpern, newly named director of Safeguard’s community initiatives department, had the honor of introducing the conference’s keynote speaker, Jon Petz, a motivational speaker who infused a comedic tone into the delivery of his highly entertaining speech encouraging everyone to go the extra mile and putting pride passion into even the simplest of day-to-day activities.  Halpern also took the opportunity to share a snapshot of the historic outreach efforts spearheaded by Safeguard and this largest national preservation company’s ongoing leadership to bridge the gap and build partnerships between mortgage servicers and the Code Enforcement community.  Safeguard’s acknowledgement of the value and importance of this outreach has further extended its 20 year history of providing the highest standard of customer service beyond the industry, and into the heart of communities.  It has been through these partnerships that the common objectives of  the industry and municipalities, alike, to maintain properties and preserve the integrity of neighborhoods have been realized.  

Safeguard was pleased to sustain its longstanding positions as conference sponsor, exhibitor, and session speaker.  In addition, Safeguard was privileged to extend its philanthropic support by matching the funds raised by members for a 50/50 raffle benefiting the Susan G. Komen Breast Cancer Foundation.       

Code Violations and the Preservation Process Session

Panel of National Property Preservation Company Representatives
Michael Halpern, Safeguard Properties
Paul Magaha and Rob Hicks, LPS
Michael Foreman, CoreLogic
Pamela Mills, Field Asset Services
Lorne DuFour, Mortgage Contracting Solutions    

Welcome & Introductions

Sherri Johnston, first vice president and incoming president of AACE, welcomed the large audience and introduced the panel, comprised of members representing five national field services companies, including Safeguard Properties.  Sherri noted the benefits of strong and open relationships with property preservation representatives to, above all, better assist code enforcement Officials with their jobs.    

Laying the Groundwork

Paul Magaha set the presentation in motion by laying a foundation of the roles and responsibilities of each segment and contributory member within the default servicing industry.  The audience was walked through the default process, which included touching on the status of a loan during the various phases leading up to a foreclosure sale.    

Using Collier County, Florida as an example, Paul illustrated the average cost and time saving benefits to local jurisdictions from working with field services companies.  These costs are directly retained by the community through communication, education, and formidable relationships.    

Roles and Activities of Field Services Companies

As Field Services companies perform work on behalf of their clients, the national mortgage companies, Michael Halpern noted the benefits of capacity and the broad expertise of property preservation companies working on a nation-wide scale.  This scope allows them to aptly interface with municipal representatives and act as a conduit for providing ground level intelligence to both the servicer and the Code Enforcement Official; all to better meet the shared goal of preserving properties and maintaining the integrity of neighborhoods.   Open communication and collaborative partnerships are paramount to attaining these objectives and more expeditiously rectify problems.       

Pre and Post Foreclosure Processes

Pamela Mills explained the purpose of the default inspection to confirm the occupancy of the property and to observe and report on its exterior condition.  Reaching out to the occupant, informing them to contact their servicer to discuss their loan is also a function performed at this time.  A monthly inspection will continue throughout the course of the delinquency.  

Once a property is identified as vacant, it is then secured, health and safety hazards are abated or removed, and routine maintenance is initiated, work that follows the guidelines dictated by HUD and adheres to municipal code requirements.  A sticker identifying the name and contact number for the field services company is left visibly at the door.  Lorne DuFour indicated that additional input from code enforcement regarding the current or updated occupancy status of a property, which may contradict that reported by the contractor, is very helpful.   

The legal authorities and actions that can be taken by the servicers vary during pre and post foreclosure.  Once a foreclosure has concluded and the property is within a servicer’s REO inventory, this authority is expanded.  At this time, making and keeping the property in a marketable condition is critical.  

Greatest Issues & Problems Facing Code Enforcement Officers

Although challenging and recurring issues may vary depending on region, such as frozen pipes being more prominent in the northern half of the country, there were the common trends of tall grass and weed overgrowth, broken windows, fences, unsecured homes, debris left in a yard following an eviction, and junk cars reported by many Inspectors.  Michael Foreman noted that the industry also identifies these as critical and takes great measures to prevent or address them, as repairs resulting from these issues can be very costly.    

Region aside, pools were mentioned as highly problematic.  The panel acknowledged these concerns and supported acute attention to them, as liability is extremely important to clients.  Michael Halpern affirmed that various measures are taken to secure and maintain pool areas as the health and safety of the community are a primary concern.    

Establishing Points of Contact, MERS

Michael Halpern shared an overview of the Mortgage Electronic Registration System (MERS), including a background of the partnership led by the industry to develop the MERS Initiative, system navigation and capabilities, and the benefits to municipalities in providing a direct point of contact for the servicer and the property preservation company.  The MERS Initiative was created in response to many code enforcement officers expressing great frustration regarding not being able to find the responsible party to address maintenance issues.    

Noting the overwhelming successes of the Initiative and the information that it now provides, one Officer confirmed that when investigating a property, their department automatically turns to MERS first, prior to utilizing other resources.  Following the session, Sally Hein of Bowie, Maryland stated,  

“I was surprised that 80% of the people did not use MERS…it will make everyone’s life easier.”   

Halpern referred to audience member Brandon Kirkham, with whom many of the inspectors had the opportunity to meet and speak.  Kirkham is president of  Compliance Connections, a new platform under development that will provide for advanced searching capabilites. Compliance Connections  will allow Code Enforcement Officers to input the details of a violation, which will then be sent in real time to the servicer.  This direct notification will streamline processes and significantly expedite resolution.  

An inspector noted that relationships with real estate agents and brokers have been very productive.  Agreeing that this sector needs to grab a seat at the table, Rob Hicks confirmed that field services companies are also encouraging brokers to establish relationships with the code enforcement community.  

Additional servicer and field services company contact information is available on the Mortgage Bankers Association website, www.mbaa.org and on the Safeguard Properties Website.  

Impacts of Legislative Efforts and Local Regulations

Federal, state, and local legislation is contributing to various delays in the foreclosure process, making it even more challenging for code enforcement officials.  Although the intentions were well intended, the many impacts of falling short on the anticipated outcomes of Federal programs including HAMP, HAFA, and PTFA were noted.   

In many states, the duration to complete a foreclosure is in excess of 500 days.  This extended period is partially the result of state enacted mediations and moratoria.  Michael Halpern noted that broad applications, including a moratorium for a borrower who has abandoned the property, are ineffective and present many obstacles for both servicers and communities, including obstructing the property from returning to productive use and thereby thwarting neighborhood stabilization efforts.  

Local regulations may influence the actions of and by code enforcement departments.  Sherri Johnston understandably affirmed the community’s standpoint that depending on the urgency and issue, “we can’t wait; we will take action to abate the nuisance.”  With respect to Vacant Property Registration programs, one Inspector indicated that some servicers comply, and others either do not or have ceased maintaining a particular property.  In these cases, the burden falls on taxpayers to maintain the property.  After sharing some of the factors and influences that may contribute to these instances, Michael Halpern recommended that the property preservation company be contacted to investigate and share this information with the servicer and assist with expediting resolution.   

Continuing the Communication, AACE in 2011

One official indicated that they found much benefit in the material and discussion points offered during this presentation and further suggested that a hand-out outlining the responsibilities of the mortgage servicing industry, activities by field services companies, the pre and post foreclosure timeframes and processes, and circumstances for foreclosure delays be created and provided to City Council, constituents, and others, as sharing this information would be very beneficial.  

Brenda Wood from King County and member of the Washington Association of Code Enforcement Officers later noted during a wrap-up session dedicated to evaluating the overall content and topics presented throughout the Conference,  

“If you didn’t attend then next year you should.  I am already in love with these guys.  They are just a Godsend to help us get to the bottom of these properties.”  

Safeguard looks forward to nurturing existing relationships and establishing new partnerships in 2011.  We are grateful for the opportunity to work and partner with AACE.  Special acknowledgement is due to President-Elect Sherri Johnston for her assistance, kindness, and advocacy throughout the year.  We hope to see everyone in Nashville, Tennessee next November 2nd for the 22nd Annual Educational Conference.

About Safeguard
Safeguard Properties is the largest privately held field services company in the country. Located in Cleveland, Ohio and founded in 1990 by Robert Klein, Safeguard has grown from a regional preservation company with a few employees and a handful of contractors performing services in the Midwest, to a national company with over 800 employees. Safeguard is supported by a nationwide network of subcontractors able to perform any requested superintendence, preservation, and maintenance functions, as well as numerous ancillary services in the U.S., the Virgin Islands, and Puerto Rico.