Lowes Poised To Bring New Clearboarding Material To Market

Lowe's Bringing New Clear Boarding Material To Market For FNMA Applications

This entry is part 24 of 24 in the series Industry Technology

The push for clear boarding, as a blight abatement tool, has been the cornerstone of Robert Klein’s SecureView, for several years, now. The National Association of Mortgage Field Services (NAMFS) has additionally fueled the fire in attempting to force the use of this product. SecureView has dumped hundreds of thousands of dollars into lobbying efforts to force the use of clear boarding upon all Fannie Mae (FNMA) properties and legislative agendas throughout the United States. In fact, Foreclosurepedia reached out to Ohio Governor John Kasich for clarification upon Ohio House Bill 463, and even the Governor does not understand how clear boarding will be implemented,

We are unable to instruct you as to what product you may use instead of plywood as this would be giving legal advice. — Governor Kasich’s Office during phone interview with Foreclosurepedia.

Recently, only SecureView and Cyprexx’s Invisiboard, were the only two firms at the table, with respect to the monopolization of selling a FNMA approved product. As predicted, though, the price of clear boarding rose 25% within weeks of it being rolled out, by Cyprexx.

INVISIBOARD PRICING UPDATE

Dear Vendors,

InvisiBoard is the leading industry patented Installation alternative to plywood. Unfortunately, the wholesale price and supply of polycarbonate has come under tremendous pressure due to a number of external factors outside of our control, and in some instances the supply of the material is even being rationed out on an allocation basis.

Cyprexx has been fortunate to have several alternative suppliers sourced and have not suffered any supply issues; however, over the last several months we have watched and absorbed significant price increases. The base raw material components in polycarbonate has risen as much as 25%.

Effective immediately our price for a 4 x 8 sheet of InvisiBoard will be $120 and for a 5 x 8 sheet $150. Installation Kits will be $9.50 each for Angles and $7.50 each for Blocks.

In addition, we have added distribution centers to our network and you can check out our website http://www.invisiboard.com to find the closest one of the 42 distribution centers. We are planning to have 55 locations operational soon and many more within 60 days.

We will continue to look for opportunities to get our vendors the best competitive price for InvisiBoard and we will have exciting news coming shortly on our efforts.

Stay tuned, and thank you for your hard work in the field.

Thank you,

Cyprexx Services, LLC

We reached out to multiple NAMFS and International Association of Field Service Technicians (IAFST) Members inquiring about how they were going to compensate Minority Females and Labor. Two were kind enough to reply.

Phil Johnsen, CEO of Sentinel Field Services, had this to say,

We are evaluating other sources of material that we feel will address the pricing and distribution issues.  We want to reduce the contractor heartburn with clear boarding.

Bryan Lysikowski, CEO of ZVN Properties, had this to say,

It is something we are going to have to look at. We will likely adjust pricing where we can however there is next to no margin in the clear boarding in the first place.

Recently, Foreclosurepedia documented that Home Depot will begin to roll out clear boarding, in store, beginning in August, much to the chagrin of SecureView and Cyprexx. The only catch is that you have to use an Mortgage Contracting Services (MCS) discounting program to purchase it at its greatly discounted rate. Additionally, over the past several months, Foreclosurepedia has been speaking with Sources at Lowe’s whom were not as bullish on the MCS discounting program and actually discussed that they were going to introduce a new material, other than the current polycarbonateapproved by FNMA.

Deal had this to say,

They rolled out with thin Polycarbonate at a pretty high price even with discount. We are working to get a new material approved with Fannie Mae that should be a better solution for the industry as a whole. Especially when it comes to pricing. It’s just taking much longer than anticipated. A lot of eyebrows have been raised during the process.

At the end of the day, clear boarding is a bad idea all the way around. Now that we have outside, non NAMFS competition involved, perhaps we will see a market stabilization. Regardless, unless and until the FNMA pricing is raised and passed through directly to Minority Females and Labor, the reality is that it really doesn’t matter anyway.

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