We are getting the first reports coming out of Safeguard Properties (SGP) that tend to confirm our timeline of catastrophic failure for SGP. SGP, an Offender Member of the National Association of Mortgage Field Services (NAMFS) is yet another trainwreck in slow motion which Eric Miller, NAMFS Executive Director, may add to his already overflowing bucket list pertaining to how to destroy the Mortgage Field Services Industry. This follows the timeline which Foreclosurepedia predicted nearly 14 months ago — the timeline is nearly to the day, actually. As everyone is well aware of many of SGPs Portfolios have been either downgraded or completely retired. The background on this may be researched by simply doing a Safeguard Properties Search in the upper right hand corner. What we now know, though, is that for the first time in memorable history, the chink in SGPs armor has been opened up wide.
From multiple sources familiar with the ongoing, internal turmoil we are able to ascertain that Safeguard Properties conservatively laid off roughly fourteen percent — roughly 140 — of their employees over the past several days based in their main headquarters in Valley View, OH. That figure may be as high as twenty percent by the time the attrition has run its course.
We know that at least 15 of these employees were active field personnel involved with quality control. Many of those remaining at Safeguard Properties were demoted from Regional Management to State Management. This is generally indicative of a liquidity crisis.
Safeguard Properties upper management were definitely not kosher about how they leveled the hammer upon their own loyal and dedicated employees. Reports are streaming in by the minute that some personnel were told to cease and desist their field activities “…immediately…” and, “…to get home however is best.”
The ongoing catastrophe at Safeguard Properties is a reaffirmation of the fact that as Foreclosurepedia predicted last year 2015 would be the year of radical change. Most financial institutions and Government Sponsored Enterprises (GSE) have already begun to shift to a Regional approach. In fact, Fannie Mae has shifted to a one state only approach to their RFP/RFB process.
As Foreclosurepedia has stated in the past, Safeguard Properties is basically in the business of equity raiding. What I mean is that Safeguard Properties comes in and capitalizes upon all of the initial monies and allowables and puts routine maintenance on a back burner. After they have stripped all of the low hanging fruit and even some of the mid hanging monies, they pump and dump the portfolios. This is the biggest problem which Cityside is facing now that they are attempting to clean up Safeguard Properties mess up north.
A simple walk through of the ISTAR Clear Base will show you precisely what the status is of any Company, Contractor or Portfolio.
We have it on good authority that all of the SGP Field Quality Control personnel were let go for the State of Tennessee and that a Regional Manager was redesignated as the State Manager. We also know that there is a massive movement, internally, to bring a majority of assets up to the Conveyance Condition across multiple SGP Portfolios. This is, in essence, regime change. To say that the Safeguard Properties Portfolios are in a state of transition; to say that this is a critically fluid environment, is putting it mildly.
Foreclosurepedia reached out to the Ohio Department of Job & Family Services, Office of Workforce Development, Rapid Response Section, Worker Adjustment Retraining Notification (WARN) Act Office to find out whether or not Safeguard Properties had complied with both state and federal regulations pertaining to WARN Act Notifications. At the time of publication, our calls had not been returned.
The WARN Act provides protection to workers, their families and communities by requiring most employers with 50 or more employees to provide notice 60 calendar days in advance of plant closings and mass layoffs to the Ohio Department of Job and Family Services.
On the OH WARN Act Office Website, Safeguard Properties had not complied with the aforementioned mandate. We will continue to monitor and report upon our conversations as they happen with Ohio State Officials pertaining to this obvious transgression.
This is a fast moving story and historic unto itself. We will continue to update the Foreclosurepedia Nation and will have interviews with former Safeguard Properties personnel as I am confident that many are upset to say the least. And that is the key, folks. When you commit the levels of atrocities which Safeguard Properties did for years, when you cut the financial lifelines off for those key people whom have families to support, the reality is that they have an ax to grind. And as all of them know, Foreclosurepedia protects our Sources!
Foreclosurepedia is issuing a High Alert on all Safeguard Properties Portfolios. If you or your firm currently works with Safeguard Properties and would like to transition into a stable setting, why not join one of our 126 Clients whom now enjoy a stable relationship between Labor and Management. Reach out to us today for a Free Consultation!
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