A Working Partnership with Code Enforcement Officials

2. A Working Partnership with Code Enforcement Officials

3. Safeguard as a Services Provider • Safeguard is a National service provider that maintains vacant properties on behalf of our clients when a loan goes into default. • Our clients are national lenders and loan servicers who rely on Safeguard to proactively act on their behalf to preserve the value of real estate that is the collateral for the unpaid debt. • At a minimum, Safeguard provides the following “field services”: • Monthly on-site inspections that verify occupancy status and property condition • Initial securing of the property once it is determined to be vacant • Removal of exterior debris for cleanliness, safety, and code compliance • On-going maintenance of the yard, lawn, and landscaping

4. Property Inspections

5. Property Inspections • Property Inspections are completed to visually verify occupancy status and condition of the property. Typically ordered at 45-60 day delinquency when the servicer has been unable to establish contact with the borrower. • Inspectors will provide a description of the property and report whether the property is secure, lawn maintenance, contact with neighbors, and notice of city citations or violations posted at the property. • Inspectors will report all damages visible from the exterior of the property and provide a description and photos of the damages. • Inspectors will provide the neighborhood condition and whether the neighborhood is considered a high vandalism area. • Photos are required to support any adverse conditions at the property – unsecure, broken doors and windows, damages, high grass, for sale signs posted, citations, etc.

6. Definitions of Vacancy Vacant and Abandoned – property is vacant of persons and personal property, and typically found unsecure. The field service provider will proceed to complete the initial securing and protection of the property. Vacant and Maintained – property is vacant of persons but not abandoned. Properties can be maintained by the owner (rental or vacation properties), the condo association, a realtor, or currently under renovation. The field service provider will not secure, winterize, or maintain the property, but will proceed to complete regular inspections to verify the property is maintained. Vacant with Personals – property is vacant of persons but personal property (furniture, clothing, electronics, etc.) remains at the property. The field service provider will recommend the client proceed to obtain legal authorization to evict the personals prior to securing and winterizing the home. Emergency measures should be taken to prevent deterioration (tarping, boarding broken windows).

7. Property Preservation

8. Property Preservation Mortgagee’s Right to Protect their Collateral Interest - The Mortgagee, legally has no right in pre-sale to take any action except to protect it's interest. They can not deny access to the mortgagor or give access to anyone without the authority of the mortgagor. • Securing is limited to only changing the locks on one door for access and winterization to prevent freeze damage • Debris is only removed from property if it poses a health, safety, or infestation risk. • Contractor safety is also a concern when securing or performing maintenance at a pre-sale property. Post-Sale Securing – All doors and windows will be secured and the property will be winterized in accordance with the guidelines upon vacancy of persons/personals. Exterior and interior debris can be removed from the property and damages can be addressed.

9. Initial Secure and Property Condition Inspection • Contractors will confirm vacancy prior to proceeding to secure the property (change locks). • Upon gaining entry to a property, the preservation contractor will conduct a thorough interior inspection. • Comprehensive information and photos are provided regarding the interior and exterior property condition.

10. Our Shared MissionProperty and Community Preservation Safeguard is dedicated to our mission of preserving properties and maintaining neighborhoods in the interests of our clients and in support of local code enforcement officials. • Benefits to Mortgage Servicers… • Protects their mortgage collateral from damage or destruction • Preserves the mortgage holder’s and its investor’s financial and legal interests in the property • Prevents potential code violations, avoiding costly citations or fines and the loss of good will • Benefits to City Code Enforcement Officials… • Prevents decreases in neighborhood property values as a result of property deterioration • Ensures timely compliance with local code requirements • Protects neighborhoods from nuisances, vandals, and other dangers associated with vacant properties

11. Communication is Crucial • Open Communication Channels imperative for success. • Safeguard utilizes the following tools in order to open appropriate communication channels in the building and code enforcement divisions in each city where we provide property services. • Introductory letter establishing our goals and explaining our services • Timely follow up by Safeguard’s “Code Violations” department • Proactive City web site monitoring to check for lists of properties with code violations • Example cities: Chicago, Los Angeles, Sacramento, Cleveland, Dayton, and Dearborn.

12. Safeguard Code Violations Department • Safeguard’s Code Violations Department responsible for preventing and resolving problems with code compliance on properties in our care. • Create open lines of communication between our clients and code enforcement officials. • Ensure compliance issues at properties under our management are correctly mitigated in accordance with local standards. • Inform local contractors of existing code compliance issues, current problems, or potential hazards for the purpose of fostering a proactive approach to preserving and maintaining properties.

13. Addressing Code Issues When problems arise, Safeguard maintains communication with code enforcement departments and follows these steps to resolve the situation and prevent citations. • Code official notifies Safeguard of a code compliance issue at a subject property • Safeguard identifies the loan servicer to determine if they are a client • Client Properties: Communication with client is initiated immediately. Copies of violations are provided to the client, and contractors are contacted to provide bids or complete work based on City and client instructions. • Non-Client Properties: Safeguard makes every effort to provide loan servicer contact information to the City. • Safeguard maintains direct contact with client’s decision-makers so that when a code issue is reported, immediate attention and resolution follows. Benefits include: • Cities are not burdened with finding the loan servicer and/or identifying the proper escalation point • Cities rely upon Safeguard to eliminate delays and misrouting of information.

14. Violation Acknowledgement Stickers When performing services or inspecting a property on behalf of our clients, Safeguard attaches securing and winterization stickers to the door with our contact information. In addition, when a violation is posted on a property, our contractors are advised to place an acknowledgement sticker on or near the violation to indicate that Safeguard and our client will be notified, and that the City will be contacted shortly.

15. Good Neighbor Program • Safeguard Good Neighbor Door Hanger Initiative • Residents of  properties adjacent to a vacant and secured property will receive a door hanger that will have a 800 number. This will allow the neighbor to contact Safeguard 24/7 to report any questionable activity or maintenance issue that needs to be addressed. • This will reduce complaints and improve community relations

16. Web Site Monitoring • City web sites are monitored weekly, monthly, or quarterly depending on how often the site is updated. • When a Client property is found on a city list, we notify our contact immediately. • Concurrently, the city is contacted to determine whether the property is still in violation and to obtain detailed information about actions needed to ensure compliance. We ask that the city keep Safeguard informed about any adverse changes in the property’s status. • Follow up continues with code enforcement departments to ensure that complete resolution is achieved and maintained.

17. Communicating with the Industry • Safeguard releases industry alerts to clients, contractors, and code enforcement officials to keep them up to date on new programs, initiatives, and issues impacting an area. Currently, our industry alerts are distributed to over 8,000 industry professionals including loan servicers, investors, brokers, and code enforcement officials. • Recent releases include: • City of Cincinnati "Blight Blitz" • Vacant Property Copper Piping Vandalism Update • Cuyahoga County Land Bank Program • The US Conference of Mayors Annual Conference Summary • Cleveland Plain Dealer Article on Mortgage Field Services

18. Update Industry Initiatives Safeguard releases regular updates to clients, contractors, and code enforcement contacts regarding new or existing industry initiatives to address vacant blight and violation issues. Recent releases include: Vacant Property Registration Ordinance – Safeguard has been working to compile information regarding registration ordinances that are being enforced throughout the Country in order to assist our clients in complying with their requirements Artistic Boarding Securing II – Safeguard is actively involved in identifying and refining new board-up procedures to comply with local ordinances for the purpose of reducing the negative aesthetic effects of traditional boarding on the surrounding neighborhood. Vacant Blight and Code Enforcement Industry Working Group – Safeguard has proactively worked to open the lines of communication between loan servicers and City Officials. We continue to urge members of both groups to provide their contact information so that they can be included on industry conference calls and involved with the networking sessions that address industry best-practices. Servicer contact information is available by clicking on the following link: Servicer Contact Spreadsheet

19. Contact Safeguard Code Violations Department 800-852-8306 Extension 2173 Code Violations SupervisorCode Violations Team Lead David Mazanek Christian Reklinski david.mazanek@safeguardproperties.comchristian.reklinski@safeguardproperties.com 800-852-8306 Extension 1261 800-852-8306 Extension 1161 Director - High Risk and Hazard Claims Steve Meyer steve.meyer@safeguardproperties.com 800-852-8306 Extension 1179