Editor’s note: This piece is an except from the December 2025 cover story from MortgagePoint, accessible here.
Property preservation and field services enter 2026 facing many headwinds. Costs have climbed, volumes have shifted, and stagnant pricing structures have left contractors and preservation vendors absorbing pressure from multiple angles. At the same time, servicers face heightened scrutiny, aging portfolios, and climate-driven risk, requiring faster reporting and tighter compliance. The industry is being asked to do more with less, even as the labor pool thins and technology investment becomes critical.
In this year’s look at the state of the property preservation sector, leaders fromAREMCO,Cyprexx,ServiceLink,Genstone Field Services, andSafeguard Properties share how they’re redesigning operations, rebuilding the contractor ecosystem, and using technology—especially AI—not as a buzzword, but as a practical tool to keep properties safe, servicers compliant, and communities protected.
In this excerpt from the December 2025 MortgagePoint cover story “The Cost of Readiness,” we’re sharing insights from Denia Ray, SVP, National Field Services, Genstone Field Services.
What key trends are currently shaping the property preservation space, whether in technology, regulation, or client expectations?
Artificial Intelligence (AI) is emerging as a leading tool in property preservation, offering unmatched efficiency in identifying deficiencies and processing hundreds of images within minutes. By generating punch lists tailored to agency, investor, or client requirements, AI adds a critical layer of quality assurance without replacing manual review.
On the regulatory front, the CFPB continues to monitor agencies and servicers to ensure preservation and inspection services remain fair and reasonable for borrowers who cure defaults. This oversight has prevented non-HUD agencies from significantly raising rates, keeping them aligned with HUD standards. As a result, industry cost estimators struggle to justify price increases, leaving preservation companies to absorb additional expenses such as mileage for servicing rural properties.
We’ve spoken before about the impact of HUD pricing on vendors and contractors. How is this affecting the health of the industry, and what would you like to see change in HUD’s approach?
HUD insures 57% of all seriously delinquent loans while holding only a 16.5% market share—yet its outdated pricing model is crippling the property preservation industry. Despite decades of cost-of-living increases, HUD’s reimbursement rates for essential services like lock changes, winterization, and debris removal remain virtually unchanged. For example, lock changes still pay $60, though inflation-adjusted rates should exceed $125. Similar gaps exist across all service categories.
Mortgagee Letter 1995-25 paid $60-$75 for a lock change, in multiple states. Today, they pay $60, despite a cost-of-living adjustment during this time of 112.58%, which would put this service in the $125.50-$159.44 range. Dry winterizations paid $100-$150 in multiple states, and today pay only $100, despite COLA showing they should be in the $214-$318.87 range. Cubic yards of debris paid $50-$60 under Mortgagee Letter 2007-03. Today, they pay less, at $50, despite the COLA increasing 56.25% during this period, putting this line item more realistically in the $78.13-$93.75 range.
This failure to update pricing has driven 80% of qualified contractors out of the market, leaving communities vulnerable and FHA portfolios at the highest servicing risk. Unrealistic conveyance standards and stagnant rates have pushed tier-1 banks out of FHA servicing, shifting disproportionate risk to preservation companies.
HUD must act now. Fair, reasonable pricing and annual reviews are critical to sustaining the industry and protecting neighborhoods. Legal networks already benefit from regular pricing updates aligned with Fannie Mae standards—field service providers deserve the same consideration. Without immediate reform, the industry faces collapse.
How are companies like Genstone managing to maintain service quality and compliance standards despite financial pressure from outdated pricing models?
It is a significant challenge! Our acquisition by Genstone Group has been a game-changer, giving us access to shared services—legal, marketing, IT, audit, vendor management, risk, compliance, and HR—that smaller firms simply can’t afford. These resources keep us aligned with evolving regulations and ensure policies remain current.
Vendor turnover adds another layer of complexity. Many new entrants lack risk awareness, while experienced providers exit the market. To bridge this gap, we share information to help partners understand client needs and improve conveyance bids using HUD’s cost estimator. Despite these efforts, we often absorb costs to meet HUD’s strict timelines and avoid “mortgagee neglect” designations.
Our QC team, supported by AI, conducts thorough reviews to maintain quality and return work for corrections when needed. This process not only safeguards compliance but also helps contractors learn and close gaps, reducing repeat issues.
Labor shortages continue to challenge preservation firms nationwide. What are the biggest hurdles you face when recruiting and retaining qualified field contractors today?
The top hurdles facing property preservation today include unfair pricing, low volumes, and rural, fragmented portfolios. After six years of COVID forbearances and loss mitigation efforts—without inspections—the portfolio is in its worst condition yet. Deferred maintenance has led to widespread mold and structural damage, making many properties unsafe for contractors and driving some out of the space.
Recruitment now demands creative strategies; old tactics no longer work. Retaining qualified partners requires transparent, two-way communication and encouraging diversification into SFR turns, maintenance, and conventional property management—similar skillsets that help sustain their businesses. With GFS now part of the Genstone family, there’s a stronger opportunity to support partners in growth and diversification.
How do generational shifts in the workforce—especially younger workers’ expectations for technology, flexibility, and communication—affect the way you structure field operations or training programs?
We’re evolving our leadership and communication strategies to meet the needs of a diverse workplace. By using the channels our teams and partners prefer—whether text, email, or phone—we ensure transparency and maintain an open flow of information. Our younger team members, who embrace new technology, play a key role in driving AI adoption and boosting productivity.
How is Genstone leveraging technology to improve efficiency or compliance in field services today?
Genstone is transforming property preservation through advanced technology and AI. Our new asset-level system centralizes data for risk mitigation, tracks REO sales, and ensures accurate billing. Integrated vendor management streamlines onboarding, performance tracking, and automated work assignments based on SLA and capacity.
We’ve partnered with a leading weather data provider for real-time portfolio oversight, enabling proactive measures during disasters—from monitoring 900 assets during California wildfires to guiding hurricane prep and snow removal. Clients have access to branded portals for live updates, forecasts, and dashboards. These innovations have boosted efficiency, reduced costs, and virtually eliminated trip fees for snow removals —delivering smarter, faster service nationwide.
AI-driven photo analysis creates precise punch lists for REO and FHA properties, accelerating bids and compliance.
How do you balance the human expertise required for nuanced field decisions with
the increasing automation of inspections, reporting, and quality assurance?
Great question! Genstone stands out in the industry by maintaining 100% manual quality control—even for occupancy inspections—while leveraging AI and automated workflows for speed and accuracy. Our system flags anomalies for immediate review, ensuring quick action. For example, if a property shifts from vacant to occupied, it triggers secondary checks, including USPS-linked skip tracing, to confirm mail activity and validate occupancy.
There has been notable consolidation across field services and related sectors in recent years. How is this reshaping the competitive landscape?
Consolidation has been great for Genstone as it helps us to increase market share and benefit from cost savings from economies of scale and operational efficiencies. We also have stronger financial power to continue innovating and delivering new products to the market. As the economy slows down, despite consolidation,
new players will enter the space.
Are there opportunities for greater collaboration across preservation, asset management, and mortgage servicing that the industry hasn’t fully capitalized on yet?
Absolutely. We are experiencing that now with our acquisition and new position as part of the Genstone family of companies and affiliation with the Fay Group. We now offer a full end-to-end service and work closely with the other entities for a seamless client experience.
What are the “blind spots” you think the industry still has: areas that aren’t getting enough attention but will be critical for long-term sustainability?
While most are not blind to us, there is a constant balancing act. One issue that I believe the industry needs to hit head-on is discoloration treatment vs mold remediation. Some states, including New York, only allow licensed and certified environmental companies to address this issue, unless it is the homeowner themselves doing the work. Investors want to keep the price down, and typically only want “treatment.” HUD will approve “treatment” but then state that if any more mold grows during the property’s pre-sale and post-sale conveyance activities, it will be considered “Mortgagee Neglect” and will not be claimable. This is often not obtainable with 100-year-old homes and basements, some of which are in flood zones. The best sump pumps in the world, and humidifiers, are not going to be enough long-term. It is estimated that 47% of homes have some type of mold or mold spores. In areas like New York, with long foreclosure timelines exceeding five years, multiple treatments may be needed. Unfortunately, that is an expense we end up having to absorb, at no fault of our own, and shouldn’t be.
An additional area that presents a challenge is with the more rural nature of the portfolios, and difficulties in determining occupancy with acreage, fences, gates, and “no trespassing” signs. Some of our clients want us to engage drones. This requires a whole different set of compliance matrices, as laws vary from state to state and municipality to municipality, but most support the residents’ right to “quiet enjoyment” and privacy.
