Welcome to the 7 th Annual Safeguard Properties Vendor Conference. Cleveland, OH August 22-25

Transcription

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2 Welcome to the 7 th Annual Safeguard Properties Vendor Conference Cleveland, OH August 22-25

3 Turning the Corner

4 REO Agenda Keynote Speaker: Vicki Bott, HUD Deputy Assistant Secretary for Single-Family Homes Session 1 Quality Control 9:15 AM-10:45 AM Session 2 Requirements and Rationale 11:00 AM-12:15 PM Lunch 12:30 PM-1:30 PM Session 3 The Importance of Recurring Maintenance 1:45 PM-3:15 PM Session 4 The Future of REO 3:30 PM-5:00 PM Evening Event: Pickwick & Frolic (7:00 PM-11:00 PM) 4

5 Session 1 Quality Control

6 What We Have Accomplished In the past year: 53,934 snow removal orders 161,102 trashouts 418,881 maid service refresh orders 1,155,021 grass cuts 6

7 Quality: Where We Are Headed Where we are: how we measure up today Expanded Field QC efforts/staffing 11,641 broker sign-off follow-up orders last year Goals for this year 100% QC passing scores 100% of vendors with a QC process in place Continued progress in building relationships with local brokers 7

8 Quality Control Statistics Greatest improvements since last year 20% improvement in compliance since last September Largest areas of opportunity going forward 8

9 Quality Control Broker sign-off sheets Follow-up orders More focus on the quality of the properties because of increased competition in the market 9

10 Sample Client Checklist Most common deficiencies Weeds on walkways, sidewalks Floor not swept/vacuumed Tub/shower surrounding area not clean Stove/oven not cleaned inside/outside 10

11 Quality Control Safeguard s processes Internal quality control Process designed to evaluate results of QC inspections How we assign inspectors Evaluation criteria during the QC inspection Field QC team On the ground evaluation of contractors performance Findings utilized to define training needs 2,500 properties evaluated per month (company-wide) 11

12 Field QC Coverage 12

13 Quality Control Memo 1267: REO Quality Control Requirements Vendor required to ensure quality control measures completed Identify Correct Summary report outlining processes and procedures 13

14 Quality Control Benefits to a comprehensive quality control process More time can be spent on new orders Less money wasted addressing oversights that should have been addressed the first time Increased profit potential through improved performance 14

15 Quality Control Safeguard s expectations of the vendors Sweat the details Be aware of marketability considerations Accurate property condition updates are critical to our clients perceptions of the local market 15

16 Quality Control Safeguard s commitment Contractor training 37 REO Service Expectation and Winterization workshops over the past 10 months serving contractors from over 40 states Field Quality Control Department growth continues Creation of Field QC best practices Mutual goal: Exceed client expectations and increase market share 16

17 Turning the Corner Goals for the future Continue to raise the industry standards and quality expectations Implement QC best practices to improve performance in the office and in the field Improve broker communication and working relationships 17

18 Session 2 Requirements and Rationale

19 Turning the Corner: Requirements and Rationale Reasons behind our evolving requirements More diverse customer base Service level agreements have become more stringent Work volume directly impacted by our ability to meet completion timeframes Trends toward upgrades: landscaping, interior/ exterior enhancements, pool maintenance 19

20 Requirements and Rationale Work order components Initial service orders Accurately reporting installed key code and lock box combination Accurately reporting utility status Accurately reporting the existence of sprinkler and fire suppression systems Subsequent maintenance work 20

21 Requirements and Rationale Status updates and broker communications When to communicate What to communicate Vendors actions (and lack of) have an impact on the time to market 21

22 Requirements and Rationale Personal property consolidation Move to garage Secure with different key code Proceed with trashout 22

23 Requirements and Rationale Pools and marketability New safety cover Impact of wellmaintained pool on marketability Chemically treating frequently, consistently 23

24 Requirements and Rationale Curb appeal considerations: enhanced landscaping Products/materials used Quality of workmanship Considerations for ongoing maintenance 24

25 Requirements and Rationale Winterizations, de-winterizations, and rewinterizations Communicate with the brokers Confirm if any repairs have taken place Provide accurate estimate start/completion timeframes Completing de-winterizations during designated times 25

26 Turning the Corner Broker communication is critical to success Improved efficiency throughout the lifecycle of an REO property is beneficial in several ways: Fewer status requests Fewer follow-up orders More time to focus on other orders 26

27 Session 3 Importance of Recurring Maintenance

28 Turning the Corner: Recurring Maintenance Why is recurring maintenance important? Continual agent feedback QC practices once properties experience extended marketing timeframes 28

29 Importance of Recurring Maintenance Lawn care Curb appeal considerations Service expectations Service frequency by client Seasonal lawn clean-up expectations 29

30 WA OR NV CA AK MT ID WY UT CO AZ NM HI ND SD NE KS OK TX MN WI IA IL MO AR MS LA NY MI PA OH IN WV VA KY NC TN SC AL GA FL ME NH VT MA RI CT NJ DE MD DC PR Grass Cut 4/1 11/30 Grass Cut 3/1-11/30 Grass Cut Year-Round Grass Cut 5/1 10/31 Weekly 11/01-04/30 Bi-Weekly REO Grass Season Virgin Islands **Desert Landscaping- Re-cuts to be completed biweekly 30

31 Importance of Recurring Maintenance Maid service refresh orders Critical that we maintain interior in marketable condition Report any new issues Be prepared to properly complete, and correct any quality deficiencies 31

32 Importance of Recurring Maintenance Snow removal Clear entire driveway and all paved surfaces Apply adequate amounts of salt Know local requirements Turnaround time Areas to be kept clear 32

33 Session 4 Taking REO to the Next Level

34 Turning the Corner: The Future Industry is placing greater focus on property enhancements to be compatible with community standards Goal is to shorten sales timeline and compete with privately-listed properties on the market 34

35 Turning the Corner: The Future Green initiatives HUD REO Estimates and repairs will become more critical Client philosophy 35

36 Estimates Growing trend to repair in REO 68% increase in REO repairs order volume since last year Common repair items: paint, carpet, appliances Pricing Turnaround times Best practices 36

37 Estimates: FAQ s & Common Errors Paint is bid by the GLA Example: 1810 sq ft home X $1.75 per sq ft would equal $3,

38 Estimates: FAQ s & Common Errors All bids are to include dimensions & product proposed Example: Replace 121 sq yds. of 26 oz carpet w/ ½ lb pad Paint interior 1,810 sq ft - Desert Castle Detailed bids need to be provided for each line item 38

39 What paint schemes are required when completing a full interior paint job? 1. Red, white and blue our clients like to be patriotic 2. Beige satin on the walls and a flat white on the ceilings 3. Whatever is on sale and isn t too scary 4. Match the existing colors in the property 39

40 Product Specifications: Paint Clients have designated certain paint schemes that need to be followed If not indicated, neutral two tone colors are to be utilized 40

41 Product Specifications: Carpeting/Other Carpet is to be no less than 26 oz FHA grade carpet with a minimum of a ½ lb pad Items like light fixtures are to be builder grade Corporate contracts preferred vendors 41

42 Repair Timeframes One day for every $1,000, plus 3 days for set-up, QC, and wrap-up General delays must be noted immediately Communicate status early and often 42

43 Communication with Brokers Communication is integral to success Brokers are your working partners, and should be communicated with throughout repair process Initial call to notify work is being completed and the scope involved Final walk through for a broker sign-off 43

44 Communication with Safeguard Safeguard s expectations Role of the repairs coordinator Critical information that must be communicated 44

45 Repairs Best Practices Spray guns as opposed to brushes and rollers Paint prior to installation of flooring Communicate with broker in advance to ensure proper scope Sweat the details 45

46 Repair Quality Purpose(s) behind decisions to repair Expectations of client, broker, and Safeguard Required sales clean following repairs Performance tracking 46

47 Welcome kits left at each property Basic supplies stocked in addition at each rehab Carpet mats placed in front of entrances Light switch & outlet covers installed Going the Extra Mile 47

48 Before Repairs 48

49 Completed Repairs 49

50 Quality Issues 50

51 Quality Issues 51

52 52