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MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 48 April 2023 S P O N S O R E D C O N T E N T T he failures of Signature Bank and Silicon Valley Bank have raised concerns about the health of many other regional banks and will put a stronger focus on risk management throughout the financial services industry. Those banks faced a run on deposits caused by concerns over continuing rising interest rates and the quickly increasing gap between the banks' investment in mortgages, long-term Treasuries, and other assets with low-single interest rate returns while the Federal Reserve was continuing to boost interest rates. Before its March meeting, the U.S. central bank had raised interest rates by 4.5 percent- age points since March 2022—the fastest pace since the 1980s. Signature and Silicon Valley aren't the only financial institutions with a mismatch between the rates they are receiving on their mortgage loans and the rates they are paying. "With lenders working to ensure they don't suffer the same fate as Silicon Valley and Signature, concerns may arise for other lenders over whether any properties they own are going to be neglected because they are failing to invest in them," said Sam Ing- ber, CEO of Brookstone Management LLC, a mortgage field services industry leader skilled at preserving and maintaining vacant, pre-foreclosure, and REO assets nationwide. The company's fundamental mission is deliv- ering maximum-quality service so its clients can achieve the greatest return on their assets while limiting their exposure. Homeowners and investors also share some of these property concerns. While the current elevated mortgage rates may keep many potential homebuyers from seeking out new mortgages, it also means that refi- nancing a current mortgage to take cash out or adding a home equity loan won't provide much, if any, relief if they lose a job, have a large medical expense, or need financial help for any other reason, Ingber says. Brookstone Management comes in to aid lenders, servicers, and subservicers, offering a full array of distressed-property services, including property inspections, property preservation services, REO maintenance, repairs, code compliance, and management of hazard insurance claims. To help its national client base work through the challenges of today's market, Brookstone recently hired Pat Pannkuk as SVP of Development. Pannkuk brings nearly 14 years of industry experience to Brook- stone, having held multiple positions at Wells Fargo, where he spent most of his time working on mortgage default servicing with a heavy emphasis on relationship manage- ment. Pannkuk's focus on building trust and rapport with a myriad of contacts from across the spectrum will allow him to build confidence in those relationships and have them see the value in the services that Brook- stone provides. Furthermore, his education and experience in business marketing and management will lend itself well to fostering, growing, and maintaining those relation- ships, says Abraham Goodman, President of Brookstone Management. "Pat's rich history in this industry and his skill sets will bring strong value to our organi- zation and allow for us to reach new heights both now and into the future," Goodman said. "There's a heavy importance placed on risk, whether it's financial risk or reputational risk, whether you're servicing your own book or you're servicing on behalf of others," Pannkuk said. "Risk has never been unimport- ant, but it is a driver of all importance now." The struggles of other financial institu- tions will mean that lenders, servicers and, subservicers need to be more focused on risk, Pannkuk adds. Brookstone Management works closely with its clients to identify what properties need what type of investments and services. With timeliness, maximum quality, and steady communication at the cornerstone of each property, Brookstone delivers seamless and immediate results to clients. The company's hands-on approach, com- bined with a multilayer quality assurance and boots-on-the-ground program, tests and assures quality throughout all stages, uphold- ing Brookstone's pledge that no property is left behind. BROOKSTONE MANAGEMENT HELPS CLIENTS NEGOTIATE CHALLENGING MARKET B y P H I L B R I T T P H I L B R I T T started covering mortgages and other financial services matters for a suburban Chicago newspaper in the mid-1980s before joining Savings Institutions magazine in 1992. When the publication moved its offices to Washington, D.C., in 1993, he started his own editorial services room and continued to cover mortgages, other financial services subjects, and technology for a variety of websites and publications.

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