1	Navigating the Crisis Day 2
2	Schedule for Day Two
3	State of the Industry The industry today vs. last year Where we are headed
4	Outline Investor Concerns HUD, Fannie Mae, Freddie Mac, VA Field Services Provider Monthly Interior Inspections Verifying Occupancy Status Pre-Sale Pre-Sale Preservation Property Condition Reports Initial Secure Order Components HUD Post-Sale Preservation Conveyance Issues Demand Letters Re-Verification of Convey Condition Damages
5	Session 1: Investor Concerns and the Servicers
6	Investor Concerns HUD Fannie Mae Freddie Mac VA
7	Investor Concerns The goal of all of these investors: convey, convey, convey Different definitions of “convey condition” among the investors
8	Investor Concerns HUD’s Requirements Damaged property claims to be settled before conveyance In most cases, property must be vacant Safety and health hazard issues addressed Convey in 30 days
9	Investor Concerns VA, Fannie Mae, Freddie Mac requirements Address health and safety hazard issues Convey upon sale confirmation, occupied or vacant
10	Commonalities Protecting the properties from deteriorating Addressing immediate health and safety issues
11	HUD Overview of the organization REO Director HOC Representatives GTR M&M Contractors
12	HUD Upcoming changes with HUD M&Ms will not be responsible for approving bids Centralization of bid approval in National Servicing Center M&M contracts expire in July 2009
13	Fannie Mae New guidelines to be released on efanniemae.com Bids are reviewed by a separate team within Fannie Mae Repair bids HomeTracker software to streamline bid process Bids will be denied if work unnecessary
14	Fannie Mae Second bids not required but sometimes requested Emergency work vs. non-emergency work Personal property policy Proper photo documentation
15	Freddie Mac Bid process Pre-sale properties only
16	VA Bid process Work completed pre-sale only
17	The Field Services Provider Our role in the process Lifecycle of a loan Default Foreclosure Conveyance M&M review, re-conveyance, re-marketing
18	Monthly Interior Inspections Investor required Contractor responsibility Always verify that working keys are inside Complete interior inspection on each grass cut order
19	Verifying Occupancy Status Pre-Sale Use all means to verify occupancy status Visual inspection Utilities Neighbors Presence of personal property
20	Verifying Occupancy Status Pre-Sale Classifications of vacancy Vacant and abandoned Vacant but with personals present Vacant but maintained (contact listing agent if the property is listed for sale) Complete photo documentation
21	Session 2: Pre-Sale Preservation
22	Pre-Sale Preservation Always enter through secondary door to confirm vacant Secure secondary door only (where possible) Full initial property condition report
23	Pre-Sale Preservation Timely and accurate reporting of damages Bids for conditions that may cause further damage and/or city citations/violations
24	Pre-Sale Preservation Procedures for properties listed for sale Agent lock boxes should be placed inside property if there is no secondary door to secure Follow any client-specific instructions on your order
25	Pre-Sale Preservation Flagging properties as High Risk Pools High vandalism risk Posted citation Sump pump present Existing damages that will worsen property condition if not addressed immediately
26	Pre-Sale Preservation Unusual circumstances What, where, and when to report Common examples Meth labs Junkyards Minefields
27	Pre-Sale Preservation What not to report: common examples “cat in window” “occupied” “cars in driveway”
28	Property Condition Reports Utility status Documenting each room in the property Sump pumps: make sure the breaker is on
29	Initial Secure Order Components Lock changes Change lock on secondary door only, unless there is no secondary door Verify that the lock is functional
30	Initial Secure Order Components Winterization Air compressors vs. portable air tanks Pressure test the system Well systems Zip tie water meters and only disconnect those where approved
31	Initial Secure Order Components Sump pumps Report if present Report if operable Electricity must be on if sump pump is present Be prepared to replace immediately, using the allowable
32	Initial Secure Order Components Grass cuts Follow guidelines as stated on order Ensure that the grass cuts are completed on time, every time Be prepared for weather delays
33	Initial Secure Order Components Exterior debris removal Accurate description and reporting of CYD Follow instructions on work orders Move personals to garage and proceed with grass cut Infestation risks
34	Bids Scope of work Excessive bids Documenting property condition Bid on all related issues at one time Ex: do not wait until the stove is removed to submit a bid to cap gas line
35	Second Bids Provide photos and letterhead Complete bid description Scope of bid Timeliness
36	Pools Scope of bid Above ground In-ground Securing properly Debris in pools Treating remaining water
37	Damages Photos, description, and source Bid removal of items, do not mask the issue Fire damage (photos and how to identify) Vandalism Structural damage Storm damage
38	Session 3: HUD Post-Sale Preservation, Hazard Claims, and Code Compliance
39	HUD Post-Sale Preservation Proceed with the work order, even if listed for sale Proceed with entire order unless in a personal property eviction state
40	HUD Post-Sale Preservation Read work order for ICC allowables Provide detailed descriptions when a property is not in convey condition Timeframes are critical in bidding and completing work
41	HUD Post-Sale Preservation Yard maintenance concerns post-sale Maintaining a grass cut list Sprinkler systems: what is required to maintain
42	HUD Post-Sale Preservation Post-sale bids Justifying the bid amount: document special circumstances Unnecessary bids Bids on return trips: generally cannot be submitted
43	HUD Post-Sale Preservation Damages Photos, description, and source Bid removal of items, do not mask the issue Fire Damage (photos and how to identify) Vandalism Structural Storm
44	Conveyance Issues Definition of “convey condition” Reporting condition vs. bidding Understanding health hazards Debris and dumping requirements
45	Demand Letters and Re-Conveyances Biggest factors: Water left in lines Debris left on-site
46	Re-Verification of Convey Condition Property previously reported in convey condition Unable to convey due to title/other issues Only report conditions that have worsened
47	Legal Considerations Personal property Damages
48	Severe Weather Alerts Contractors’ responsibilities See Memo 1225
49	Hazard Claims HICRD reviews damages and files a claim where applicable Bid process
50	Quality Repair Bids Address every issue and separate the bids Provide adequate descriptions and specify materials Pull permits as required
51	Code Compliance Property Issues and Violations Reporting potential violations Examples of common issues/violations City/County postings Vacant Property Registration
52	Local Guidelines/City Ordinances Licensing/registration, securing requirements Water meter removal restrictions Provide bids for all issues identified in notice (if qualified) Communicate with Code Enforcement
53	Session 4: Quality Control and Media Procedures
54	Quality Control Vendor Management Contractor error tracking Vendor report cards PPV% Internal measures Field QC team
55	Internal Measures QC on all initial service orders (REOFU) QC when brokers report issues (BSOFU)
56	Field QC Team Objectives Order completion performance: completion to update timeframe Improved contractor QC results on subsequent visits Improvement in field work Improvement in internal measurements
57	Field QC Team Objectives Continuous contractor improvement measurement Provide training to new as well as existing vendors
58	"Create standard contractor models for..." Create standard contractor models for specific coverage areas Based on volume and contractor set up know what type of vendor should be in certain areas
59	Quality Control Requirements Avoid Common Contractor Errors Ensure all photos are in when updating work completed Update all work within 24 hours of completion Submit status updates immediately
60	Quality Control Requirements Work with Field Quality Control Field Evaluation Vendor Report Card is reviewed when our Field QC Representatives visit contractors in the field Work with your Field QC Representative to implement better processes and make your office as efficient as possible
61	Client Disputes Often resulting from lack of proper photo documentation or failure to follow guidelines Can be avoided easily
62	Client Report Card Updating Safeguard Completed date vs. updated date Status Report update function
63	Vendor Web Current status Rollout plans Challenges
64	Media Coverage and Inquiries High interest level in industry because of mortgage crisis Project a positive image when speaking to press Refer to Memo 1230 for proper media procedures
65	Thank You for Attending the Fifth Annual Safeguard Properties Vendor Conference