DESTRUCTIVE TRIO YIELDS VALUABLE LESSONS

In the wake of the devastation caused by three of the most powerful hurricanes ever to affect the Gulf Coast region of the U.S., Katrina, Rita and Wilma, there were many lessons to be learned.  At the end of 2005 and into the first half of 2006, the housing, insurance and mortgage industries have courageously struggled to understand, assess, and respond properly to crisis issues not previously encountered on this scale.  Along with our clients and colleagues, Safeguard Properties has regarded the catastrophic aftermath of these storms as an opportunity to analyze policies and procedures and to refine and implement a comprehensive system of best practices that will enhance our ability to handle future disasters as successfully as humanly possible.

Last year’s hurricane season understandably caused many mortgage servicers, investors and insurers, to stagger under the responsibilities related to the extreme property damage, uncertainty, and unprecedented levels of loss.  The many interdependent industry stakeholders, including various government entities, began to seek ways to cooperate more fully with one another so as to participate as effectively as possible in the recovery efforts.  Safeguard helped by initiating telephone conference sessions and providing or participating in several live conferences that promoted open and frank discussions of the wide variety of hurricane-related issues.  Safeguard benefited from these talks and followed up by developing an internal focus on how well we met the challenges that we faced, and to what extent significant improvements to our responses could be implemented.  We began immediately to put into action policies developed from all the lessons that were learned from our own experiences and those of our clients.
 
Devastation from the hurricanes was widespread, but the impact also led to heightened awareness, increased preparation, and Safeguard's unwavering determination to improve its internal processes.  In time for the approaching storm season, we have implemented substantial changes to provide the information and reporting functionality our clients need to make sound business decisions regarding their portfolio of assets located in disaster areas.  We have learned valuable lessons about how to overcome obstacles in the field, maintain excellent relations with its inspectors/contractors, and process dramatically increased work volumes.

Safeguard has pinpointed four vital initiatives that are essential elements to our disaster readiness and response procedures:
1.  Organize, mobilize, and support field crews on location
2.  Establish and maintain 24/7 communications
3.  Collect detailed information on conditions affecting individual properties and their surrounding communities
4.  Systematize and deliver constantly updated reports to clients

Crews On Location
Paramount to meeting client orders is the immediate mobilization and assembly of adequate field crews on location.  Relocation of personnel who are proximate to the disaster area must be accomplished as soon as possible after the initial danger is past.  Completing inspections and damage assessments to properties in a timely manner is dependent upon this step.  In order to ensure compliance with Safeguard's established completion timeframes, meet investor guidelines, and help manage an increase of inspection orders, we have created a uniquely trained disaster recovery team.  This crew of “rapid responders” is comprised of some of our most experienced field personnel who have the knowledge, skills, and willingness to be among the first on the scene.  This team will relocate within hours after entry is allowed into any future disaster area in order to efficiently inspect and inform our clients on the conditions of their properties.  The rapid responder team will remain on the scene as necessary to absorb increased inspection volume that the crews that follow will encounter as they arrive a days later.
 
Communications
Efficient decision-making control is dependent upon adequate communications capabilities between Safeguard’s headquarters offices and crews on the ground in the disaster areas.  Conditions may prevent normal channels of gathering information, depending upon the strength of local infrastructure and emergency accessibility in the hardest hit areas.  Working with disaster recovery personnel affiliated with municipalities and other governmental entities, Safeguard will utilize the best available means of communications. 

Major disruptions, such as the lack of Internet access and even telephone service, including cellular towers, are anticipated to occur in the early days of a disaster; therefore, having personnel on the ground in affected areas becomes a critical necessity.  The on-site field crews' quick establishment of a remote office will allow Safeguard to have a central communication vehicle to monitor accessibility, receive the flow of information, remain in close contact with inspectors and contractors completing work orders, and develop relationships with community officials. 
 
The establishment of remote offices in close-in areas will enable Safeguard to facilitate reconnection with technology as soon as possible to complete property inspections, accurately report damages, inform additional field crews, and remain in constant contact with our disaster recovery team. 
These offices allow Safeguard to remain in constant contact with local resources, including the 911 emergency responders, repair teams with the utility companies, road crews, the U.S. mail, and other entities so that we can constantly update field crews on the status of area services.  It is essential to know where there is limited or no accessibility and provide assistance locating properties when street signs or other standard identification indicators are down or destroyed.
 
Information Collection
Local crews, especially our first response team, are trained and equipped to assemble accurate and comprehensive information.  The strength of our data gathering function has proved essential to assist our clients in determining what steps are necessary to preserve their interests.  After the events of 2005, Safeguard quickly created a FEMA Property Inspection protocol that is designed to acquire and organize more detailed, disaster-specific information than the normal Standard Monthly Property Inspection.

After reviewing the feedback received from the new FEMA inspections, we realized that the form could be improved in specific ways; therefore, enhancements have been made.  Safeguard has now developed the Extended FEMA Inspection to provide more specific detail on the individual property condition, while also providing a fuller picture of the situation in the neighborhood surrounding the property.  The Extended FEMA Inspection will be available to our clients on the initial inspection.  Subsequent inspections performed can revert back to the Standard Monthly Property Inspection format.
 
Continual Reporting
Organizing and updating the information received from field crews and official local contacts into useful, detailed reports is vital.  Without adequate and continued reports, our clients are handicapped in their decision-making processes.  We provide data that allows our clients to pull disaster-specific information on FEMA-area properties and be advised of city postings and other actions.  Programming has been implemented to flag properties in the affected areas in our system for easy identification and further reporting.  This functionality enables our clients to efficiently file and follow up on hazard insurance claims and adjust internal procedures to comply with new investor guidelines released in response to disasters.
 
In conclusion, every improvement action that Safeguard has taken in the interim since last hurricane season serves to enhance our level of preparedness for future catastrophic events.  They have been difficult and costly, but the lessons we have been taught by Katrina, Rita and Wilma are proving to be of great value.  As a conscientious company, and in constant support of our industry, Safeguard plans to continue in our quest to identify issues, learn best practices, undertake necessary changes, and fully implement effective resolutions to ensure that every client's needs are met, even when disasters strike. 

Robert Klein, CEO
Safeguard Properties Inc.
1.800.852.8306 ext 1102
robert.klein@safeguardproperties.com
www.safeguardproperties.com
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