Why Custom Technology is an Essential Part of the Hazard Claims Process

Posted by DIMONT on June 8, 2017 at 10:00 AM

hazard insurance check.pngThere are few components of the modern mortgage business where technology is not a requirement for efficient operation; indeed, without our modern technology platforms, we would simply not be capable of operating in a compliant manner. This is particularly true when it comes to managing the complexities of the hazard claims business, where technology plays a pivotal role.

Historically, we had trouble finding software platforms on the market that met our needs and those of our clients, so we have chosen to develop our own proprietary platforms. As a result, we are able to interface directly with many of the systems used by our clients, as well as the systems in use by the nation’s property preservation companies, who often work closely with the same mortgage servicers with whom we partner. Additionally, we can interact directly with providers of lender-placed insurance products, allowing us to more easily share data, file claims quicker and report back to our clients with extreme accuracy.

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Topics: Hazard Insurance

How Long Does it Take to Process Hazard Insurance Claims?

Posted by DIMONT on May 18, 2017 at 9:30 AM

Time is money in the mortgage business and every day of processing time that an institution can save directly impacts its bottom line. That is certainly true in the case of hazard insurance claims. In fact, failure to adhere to a timeline can lead to much higher expenses and the possible loss of reimbursements or loan guarantees.

Naturally, it’s common for our customers to ask us how long it will take to process their hazard insurance claims. We resist the temptation to reply that “it depends,” though that is actually the truth. Instead, we help our customers understand which steps take up the most time in this important process and where we can more rapidly reach a favorable conclusion.

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Topics: Hazard Insurance

Ensuring Sufficient Hazard Insurance Coverage

Posted by DIMONT on May 11, 2017 at 9:30 AM

hazard insurance check.pngAfter over two decades of helping banks and mortgage servicers file claims and recover losses from insurance companies, we understand the criticality of having sufficient insurance coverage on collateral properties.

Investors face increased risk of loss when they have insufficient insurance coverage or the wrong kind of insurance coverage on a property that serves as collateral for a mortgage loan. Making sure that the coverage is both sufficient and of the proper type is critical for effective risk mitigation.

Having the Right Kind of Coverage for Your Collateral

Most servicers know that there are many types of insurance and only hazard insurance protects the mortgagee from risk should the property be damaged before the loan is paid off.

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Topics: Hazard Insurance

Reducing Loss Severity on FHA Loans in Default

Posted by DIMONT on July 12, 2016 at 9:30 AM

Filing claims on defaulted loans, whether they are hazard insurance claims on policies on real estate collateral or guaranty claims with federal government agencies for loss coverage on a federally insured loan, has always been important for servicers. This is particularly true for servicers of FHA loans.

There are two critical areas in which servicers can effectively limit their losses on defaulted FHA loans. The first involves collecting on hazard insurance that is in-force on the properties during the time the servicer is in charge of the asset, before it has been sold back into the market through REO disposition. The second is through effective handling of investor loss claims to the FHA after the real estate sales process is complete. We cover both in a new white paper that is available now on our website.

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Topics: Hazard Insurance

Three Ways Servicers Can Ensure Compliance While Filing Hazard Insurance Claims

Posted by Tom Stover on April 26, 2016 at 9:30 AM

MagnifyingGlass_hazard.pngThe processing of hazard insurance claims is not often the main focus of service expertise within mortgage servicers, as it is usually outsourced to specialty insurance providers. These providers are subject to state regulations, with each state free to determine hazard insurance compliance requirements as it sees fit. Because of this, processes can, and do, vary greatly from state to state, and it is the servicer’s job to ensure that they comply with all regulations.

For those mortgage servicers still processing hazard claims internally, here are three ways to ensure you maintain compliance: hire licensed adjusters; provide ongoing training; and establish an effective method of managing consumer data.

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Topics: Hazard Insurance

Why Hazard Insurance Claims Analysis is Vital to Your Mortgage Servicing Business

Posted by Aubrey Bronson on February 16, 2016 at 9:30 AM

Key-House_Blue-e1453741869768 - hazard.pngAs a mortgage servicer working in the world of hazard insurance claims, it can be easy to get caught up solely in the adjustment side of the process, i.e., filing claims. However, it is important to remember that maximizing claims recovery cannot occur without comprehensive claims analysis.

Claims analysis consists of reviewing properties and identifying all of the opportunities for recovering claimable damage, and is the first step in the process of filing claims. Your property preservation teams provide maintenance and corresponding documentation of the property from the time it is received through liquidation. During the claims analysis process, to ensure the maximum recovery is obtained, servicers must adapt to recovery opportunities that arise from the property preservation data, while always being mindful of remaining in compliance with government regulations.

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Topics: Hazard Insurance

Do You Have the Necessary Hazard Insurance Claims Expertise for Your Mortgage Servicing Operations?

Posted by Cheryl Johnson on February 2, 2016 at 9:30 AM

Key-House-Orange1-300x121 - hazard.pngMortgage servicers manage the relationship between borrower and lender or investor, including processing payments, managing escrow accounts and compliance with government regulations, accounting and reporting. Processing hazard insurance claims is not a typical core area of expertise within most servicing organizations. However, executing this area of the business accurately can result in generating significant revenue for investors by recovering costs associated with properties in various stages of default or foreclosure, as well as offsetting servicer expenses.

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Topics: Hazard Insurance