Deon Ramsey posted an update 3 days, 20 hours ago
It should spell out the nature of their relationship and what types of information the public adjuster can obtain (if any) about the loan.2) While dealing with damages to their property, many borrowers will experience a temporary inability to pay their mortgage. This is an excellent opportunity to refer the insured to the servicer’s loss mitigation unit to assist the borrower during this period.3) How does the public adjuster get paid if the servicer does not release the proceeds?a. It is the insured’s obligation to pay the public adjuster. They can pay them from other proceeds – such as from the personal property claim.b. Servicers should obtain authorization from the insured before making any payments to the public adjuster.c. Courts have held that a PA has an equitable lien on the insurance proceeds for their fee. If a borrower retains a PA and then eventually loses their property to foreclosure, the mortgagee is still obligated to pay the public adjuster’s fees.4) What if the proceeds are not sufficient to repair the property?a. Is the PA pursuing additional proceeds?b. What is the reason for the difference?c. Is the PA contemplating referring the claim to an appraiser (for an independent valuation of the claim)?d. Has counsel been retained?5) Be on the lookout for PAs that are heavily involved in the repair process. In some states, if a public adjuster has handled a claim on a property they are prohibited from also repairing the same property, or having a financial interest in the repair, due to a conflict of interest. The servicer should make sure the property is inspected at each stage of repair, and ensure that the borrower documents their satisfaction with the repairs, to prevent problems down the road.6) What if the public adjuster refuses to endorse the settlement check and send it to the mortgagee?a. The mortgagee should be in direct communication with the insured and public adjuster. If necessary, the mortgagee can ask the insurer to interplead the funds and ask the court to assist in resolution.7) Is the mortgagee advised to cooperate with the public adjuster? Yes.a. As the representative of the borrower, the adjuster is the most knowledgeable about the claim and in the best position to keep the mortgagee informed.b. If the mortgagee finds the public adjuster to be non-cooperative or hostile they can reach out to the borrower to resolve whatever issue is at hand.8) Who regulates public adjusters?a. Public Insurance Adjusters are currently regulated in 46 states by each state’s Department of Insurance – or its equivalent. There are only a handful of states that do not require licensing.b. Some states have fee caps regulating the amount a PA can charge for their services. You may want to make sure your borrower is aware of this.c. As of the date of this article, three states, Alabama, Arkansas and Alaska, do not allow PAs to charge any fees and do not recognize PAs.9) What are some of the things a servicer can do to check the Why Work With an Insurance Adjuster background of the PA?a. Licensing status can be verified on most state’s Department of Insurance website, in the state where the loss occurred in. This verification is made easier by asking the public adjuster for their license number.