Mortgage Field Services Industry in Crisis
The mortgage field services industry is in crisis. The number of foreclosed homes in the United States has reached record levels, interest rates are rising, gas prices are soaring, and wages for field service workers are stagnant.
As a result, many field service companies are struggling to find and retain workers. The International Association of Field Service Technicians (IAFST) estimates that the industry has an 81% attrition rate up from the original 70 percent rate originally documented by NAMFS.
In an effort to address these challenges, the IAFST is taking several initiatives. First, the Association is working to develop certified education programs that will raise prices for Field Service Technicians and Inspectors. Second, the IAFST is launching an On the Job Training program that will pay for up to 2,000 hours of wages for Labor. And finally, the IAFST has been working closely with White House staff in order to bring forward a NAICS for the Industry which has never happened in the history of our Industry.
The IAFST is also calling on mortgage lenders and loan servicers to increase wages for Labor. The Association argues that fair wages are essential to attracting and retaining qualified workers, which is critical to the preservation of foreclosed assets.
The State of the Industry
According to the Mortgage Bankers Association, there were 780,000 homes in foreclosure at the end of June 2023. This represents a 31% increase from the same time last year.
The rise in foreclosures is being driven by a number of factors, including rising interest rates, rising home prices, and job losses.
The Federal Reserve is raising interest rates in an effort to combat inflation. This is making it more expensive for homeowners to refinance their mortgages, which can lead to foreclosure.
Rising home prices are also making it difficult both for homeowners to afford their mortgages and Labor to service the default assets. In some parts of the country, home prices have increased by more than 20% in the past year.
Job losses are another factor that is contributing to the rise in foreclosures. The unemployment rate has been rising in recent months, and this is making it difficult for some homeowners to make their mortgage payments.
The Impact of Low Wages
The low wages paid to field service workers are a major contributing factor to the industry’s labor shortage. The average wage for an Inspector is just $5 per inspection. This is not enough to cover the cost of gas, insurance, and other expenses. This, while Prime Vendors are being paid $45 per inspection on Fannie Mae and Freddie Mac inspections. For Field Service Technicians, an initial grass cut on lawns less than ten thousand square feet averages $55 while Freddie Mac is paying $450. This is a disparity that is startlingly clear when it comes to A2Z Field Services, Cyprexx, Five Brothers, ServiceLink and ZVN Properties. As ZVN Properties has recently been awarded a large portion of the Freddie Mac portfolio and continues to refuse meaningful price increases, it gives cause for concern for the uninterrupted servicing of distressed assets.
As a result, many field service workers are forced to take on multiple jobs just to make ends meet. Many are now collecting food stamps. And most rely upon cutting corners, such as not obtaining the proper insurance policies. This can lead to burnout and safety concerns.
The IAFST’s Initiatives
The IAFST is taking several initiatives to address the challenges facing the mortgage field services industry.
First, the Association is working to develop certified education programs that will raise prices for field service labor. These programs will teach workers the skills they need to be successful in the field, and they will also help to raise awareness of the importance of fair wages.
Second, the IAFST is launching an On the Job Training program that will pay for up to 2,000 hours of wages for field service workers. This program will help to train new workers and to keep experienced workers in the industry. This includes the first-in-history creation of a specific NAICS for the Industry to involve the Departments of Education and Labor as well as the Census Bureau in order to properly document the draconian wages paid and then clawed back through nefarious chargebacks and fraudulent insurance claims.
Finally, the IAFST is calling on mortgage lenders and loan servicers to increase wages for field service workers. The Association argues that fair wages are essential to attracting and retaining qualified workers, which is critical to the preservation of foreclosed assets.
The Future of the Industry
The future of the mortgage field services industry is uncertain. The rising number of foreclosures, the rising cost of living, and the low wages paid to field service workers are all challenges that the industry will need to address.
However, the IAFST is committed to the future of the Industry. The Association is working to develop solutions to the challenges facing the Industry, and it is confident that the industry will continue to thrive.
Want to roll up your sleeves and get involved? Join the Association today by clicking here!
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