Friday, August 29, 2014

Property Preservation by Fannie Mae

The Fannie Mae Mission

At Fannie Mae, our Property Maintenance team's mission is to ensure quality and cost effectiveness of our REO property maintenance services, consistently producing best in class, market-ready properties and maintaining them until they are sold from our inventory

Our Goal

Our goal is to provide services to maintain each property in Fannie Mae's inventory to a level of market readiness inside and outside of the property as well as to adhere to local codes and requirements. In addition, we strive to:
  • Be a good neighbor.
  • Remove any REO "stigma" and appropriately maintain properties.
  • Minimize Fannie Mae's exposure to potential property damage and liability.
  • Perform property maintenance to support and enhance the marketing of the property.
  • Managing Local / Regional / National vendor relationships to ensure quality output while minimizing overall costs.
  • Maintain properties in a manner in which, whenever possible, to sell them to owner-occupants who will stabilize neighborhoods and help the housing recovery.
 

Field Services for Fannie Mae

Fannie Mae utilizes local, national and regional Property Maintenance vendors to perform services for all REO properties in Fannie Mae's inventory. We expect each of our vendors to provide services in accordance with the terms of their contracts and ensure each property to be in "market ready" condition.
Our Property Maintenance companies maintain the exterior of the REO properties year round. These vendors are required to visit the properties every seven days and keep the exterior of the property free of debris, maintain the lawn, and remove leaves and snow as appropriate. All interior areas are to be clean, free of debris with floors swept, mopped and/or vacuumed as appropriate each month. In addition, safety hazards are to be addressed and remediated immediately when possible (e.g., fixing a loose step, repairing a minor plumbing leak, or capping a wire).
When properties become vacant, our initial services include the following items:
  • Removal of all trash and debris
  • Winterization, in season, and where geographically required
  • Exterior maintenance / snow removal services
  • Securing of property (as appropriate)
  • Interior cleaning
  • Identify and repair all safety hazards
Each vendor also provides ongoing maintenance including:
  • Monthly maid service
  • Exterior maintenance and snow removal
  • Emergency securing
  • Removal of additional debris
  • Identify and repair all safety hazards
For more details on our field services, see our Field Services Checklists


Quality Control Layers

To ensure the quality of the services provided by the Property Maintenance vendors, Fannie Mae uses three layers of property inspections including our Agents, national third-party inspection companies, and Fannie Mae Field Quality Control Specialists.
  • Agent Signoffs – Fannie Mae Agents perform thorough inspections on 100% of their assigned properties to ensure cleaning services and trash removal performed meet Fannie Mae expectations, as well as safety issues addressed.
  • National Third Party Inspections – Each month, Fannie Mae utilizes national field inspection companies to perform random quality control inspections on 30% of our inventory nationwide. These inspections allow us to implement better process controls, manage our vendor performance, and apply training programs to maximize staging and minimize disposition timelines. We are able to ensure property maintenance work has been performed to our expectations, as well point out any marketing issues such as missing realtor signs and materials.
  • Fannie Mae Field Quality Control Specialists – Fannie Mae employs specialists who are located in key markets to perform inspections of our properties, as well as provide in-the-field training to our Sales teams, Agents and vendors.

Continued Community Focus

At Fannie Mae, we continuously look for ways to improve our property maintenance processes, as well as find innovative ways to secure our properties in the neighborhoods we serve. One example is the introduction of Clear Boarding, a polycarbonate board-up system which offers an alternative to using plywood if a property requires boarding. Clear Boarding combines the necessary strength to protect the property with transparent window covers, giving an appearance of traditional windows, while securing the property and not exposing its vacancy to onlookers.
Clear Boarding is already available in a majority of states across the nation and has enhanced Fannie Mae's position as the industry leader when it comes to the innovative way we secure our properties in support of neighborhood stabilization.
BEFORE and AFTER photos of Clear Boarding.