TheMReport

40 | TH E M R EP O RT SERVICING THE LATEST O R I G I NAT I O N S E R V I C I N G DATA G O V E R N M E N T S E C O N DA R Y M A R K E T Addressing the Abandoned Property Problem One industry group is calling for cooperation to address issues caused by lengthy foreclosure processes—and the subsequent vacant problems they leave behind. T he National Mortgage Servicing Association (NMSA) has issued a report calling on all federal agencies to work together with the mortgage servicing com - munity to institute policies that standardize the procedures, defini- tions, and best practices surround- ing the treatment of vacant and abandoned residential properties, which, according to the report, "hurt communities and families." The NMSA issued a report in July calling for an industrywide discussion of policies that would standardize procedures, defini - tions, and best practices for vacant and abandoned properties. Under current law, many abandoned properties are subject to the same lengthy foreclosure process as oc - cupied ones, resulting in extended vacancy and other considerable problems. The report was, in part, developed with input from several NMSA member organiza - tions, including Wells Fargo, Bank of America, BankUnited, Selene Finance, and others. "The concerns presented by the proliferation of vacant and aban - doned residential properties are, at their core, consumer protection issues," said Ed Delgado, President and CEO of the Five Star Institute and Ex-Officio of NMSA. "These properties can potentially have a devastating effect on surrounding communities because they often become magnets for vandalism, squatting, and violent crime. In extreme cases, these properties have even led to the tragic loss of life. Surrounding properties can expect to experience a loss of value—a significant detriment to the primary source of wealth for many American families." According to Ray Barbone, NMSA Chairman and EVP at BankUnited, vacant properties pose a problem for both homeowners and the areas in which they live. "Vacant and abandoned proper - ties is a complex and difficult issue that is detrimental to surrounding homeowners and communi- ties," Barbone said. "The issue is evidenced by recent legislation in Ohio and Maryland. However, the industry remains challenged in protecting those impacted due to inconsistent and disparate defini- tions and guidelines relative to such properties. The NMSA hopes that this proposal for standardization of procedure, definition and best practices is a catalyst for dialogue that leads to the development of an effective approach to dealing with the issue of vacant and abandoned properties across the country." Though some individual states have proposed solutions to rem - edy the blight caused by vacant and abandoned housing, these have yet to be effective. "There is a disconnect between state and local governments that prevents clear lines of communi- cation and a mutual understand- ing of the depth and breadth of the issue, thereby causing uneven treatment and disparate results," the report argued. "In the end, consumers and the communities are the ones who suffer." Delgado outlined the prob- lem in a report addressed to the leadership of HUD, CFPB, the U.S. Department of the Treasury, OCC, Fannie Mae, and Freddie Mac. Delgado said he hopes the report will spur interagency dialogue to address the ever- growing problems that vacant and abandoned properties pose. "The NMSA is ready to partner with all federal agencies in the de - velopment of common sense solu- tions that alleviate the tremendous strain that vacant and abandoned properties place on our communi- ties," he said. The National Mortgage Servicing Association is a non- partisan organization driven by top-level executive representation from the nation's leading mortgage servicing organizations for the purpose of effecting progress and change on the key challenges that face the mortgage servicing indus - try. By bringing together decision- making executives from across the nation, the NMSA drives the conversation on shaping the American housing industry for the benefit of homeowners.

• Cover