Loss Draft Procedures
Good morning to all subs,
Below is a detailed explanation of the loss draft process. Please read it in its entirety, print it, and follow this SOP as outlined below.
RE: Loss Draft Process:
One of our biggest challenges continues to be the Loss Draft Process. This email serves as clarification for loss draft procedures. Please read this email carefully and follow all procedures outlined. Thank you for your prompt implementation of the procedures below. If you have subcontractors, please make sure they receive these procedures as well. PNA appreciates the excellent quality of work each inspector provides.
INSURANCE LOSS
The purpose of this section is to familiarize you with the “why” behind loss draft inspections. A loss draft is ordered by our clients when a homeowner has had damage to their home, and the homeowner makes a claim on their homeowner’s insurance policy. In order for a homeowner to receive money for repairs, the mortgage company has to release the funds allotted by the insurance company. PNA serves as a very important step to this process. The mortgage company is waiting for the results of the inspection you preform to determine if they will release fuds to the homeowner. As a field inspector, you are verifying repairs that have been completed per the scope and repairs that have not been completed per the scope. These repairs are verified to the mortgage company through your accurate reporting and photographs. This is why we NEVER complete a loss draft without a scope unless specified by the client’s request.
It is imperative that we service loss draft orders ASAP. Many homeowners are upset because they have fronted their own money to get the repairs made to their home. The money fronted could be thousands of dollars. Also, many have lost personal items that could not be replaced in the damage done to their homes. If we do not get the inspection completed asap, the homeowner becomes very concerned, and we are in the middle of that concern. The mortgage company is receiving daily calls from the homeowner to demand that the check is released. Sometimes the first inspector did not set the appointment, so the inspection has been reassigned to PNA. When you receive a rush loss draft, this is usually the case.
We are the most important part of this process because we are helping the homeowner get their money. The homeowner will be looking at us as a representative of the bank—be mindful that we ARE in fact a representative of the bank. These inspections are important to the mortgage company because they want to have a good relationship with their customers. This is why our clients have a specific department created just to process loss drafts. Each order is monitored and scrutinized from beginning to end.
We had a tremendous amount of inclement weather and disasters in Texas last year, so we are seeing a record number of Loss Drafts. Make sure you do your part to expedite the completion of these inspections. It is not enough just to say we left a message. If you leave a message in the A.M. today, try them again in the P.M. The goal is to get the results back to the client as soon as possible. Try to set the appointment to coincide with your daily routes. Send the updates to PNA as soon as you make the attempt. Please read ALL of the detailed information below and call me if you do not understand any part of it.
POINTS OF EMPAHSIS:
Orders must be updated within the first 24 hours of being received, and updated each day until an appointment is set. When attempt lines on the call log are full, please provide an update by emailing the appropriate account administrator off of the order on EZ. Call attempts should be made once during the day AND again after 5 pm in order to contact homeowners who
work during the day.
All inspections must be submitted to PNA on the day of completion.
M&M schedules their own appointments. They will give you a choice of two different date/times. You will need to let Arvin know which appointment you choose.
Any inspection that is a no show by the homeowner/contact, you must call PNA from the property for instructions. Please follow the procedures below for reporting a no show.
Call the homeowner from the property.
Wait at least 15 minutes
Call the appropriate PNA account manager from property to seek advisement
Take a photo of the street sign, address, and front of house to prove we are present during the scheduled appointment time.
Do not reschedule any appointment unless you Call PNA first.
If for any reason you miss an appointment, notify PNA immediately.
MCS requires a JPG photo of the signature document. Please include the signature page for MCS loss drafts as a clear, readable photo of the entire signature page. ALL other clients require a PDF (scanned document) of the signature page. This is a two part process. First you complete the photos and form on EZ. Then you add the pdf scan on the website.
Do not hesitate to ask questions if you are not sure of the process.
LOSS DRAFT PROCEDURES
You cannot complete a loss draft inspection on the EZ mobile App until you have entered the appointment info on the website first.
All appointment updates must be entered on the results screen of the individual inspection on EZ daily basis. Please see directions provided in this email for reporting updates and appointments.
Once you have scheduled the appointment, you do not need to enter any more updates. Simply complete the inspection on the day/time of the scheduled appt.
Make sure you have a copy of the scope with you on your phone or hard copy at time of the appointment. If the order does not have a scope, please let the account manager know. You cannot complete a loss draft order without a scope. YOU CANNOT VERIFY REPAIRS BASED ON WHAT THE HOMEOWNER TELLS YOU. The scope serves as your guide for repairs you need to verify for our clients.
Take all required photos-- street sign, address, front of house, completed work per scope, and incomplete work per scope.
Complete signature form by filling out ALL field questions on the form. Information that must be provided on the client signature document includes list of completed work and work not completed. Fill in the % completed based on the dollar amount allowed for the repairs. Please call an account manager if you do not know how to calculate a % complete using the scope.
*** Formula for Percent Complete: total dollar amount on scope allowed for repairs divided into the sum dollar amount of completed repairs = % of work completed.***
Sum dollar amount of completed repairs/ Dollar amount allowed for repairs = % complete
If the property is not 100% complete, the repairs not completed also need to be listed in the comments of the of the inspection on EZ. Please make sure to check the box right above the comments box.
MCS requires a JPEG (picture) of the signature document. Please make sure it is a clear, readable picture. For ALL other clients you must upload a PDF (scanned file) of the signature document.
Once you have completed all of the photos, form on EZ, and uploaded the signature document, Complete the inspection on EZ and it will submit to PNA and/or the client.
Instructions below for updating appointments in EZ:
***At least one appointment attempt must be entered on EZ daily until the appointment is scheduled, or the order is cancelled by the client.***
Appointment updates must be entered on the website. Log into EZinspections with your user name and password. Go to the “Results” tab.
Enter the date/time on the attempt line in the following format-- Date: 01/01/2016 Time: 5:00 PM. You must save your update. Click on the “save” icon located on the tool bar (row of icons) at the top of the order (green floppy disk), DO NOT hit the complete button at the bottom of the order.
***If you have a merged account, save your update using the steps above, AND use the verify button to deliver the update to PNA.***
DRIVE BY LOSS DRAFTS:
***Although most Loss Drafts require an appointment, some are ordered as a drive by per the client. We cannot change an appointment loss draft to a drive by without first obtaining permission from the Mortgage Company.***
The form requirements vary from inspection to inspection and from client to client. Please read directions for each order before completing.
All clients require updates for drive by loss drafts. Please enter the appointment update information with the date that you will be completing the inspection when ordered a drive by loss draft. You can use 5:00 PM as the time.
Make sure you enter the results on the day of completion.
If a signature form is attached/required, sign it and put “drive by” in the place of the home owner’s signature. Some clients such as AIM do not require a signature doc for drive by loss draft inspections.
If there is a scope attached to the order and the directions ask you to use the scope, verify the repairs you can see to determine % complete. If there are interior repairs, then you must deduct the dollar amount of the unverified repairs that you cannot see to determine an accurate % complete. Again, you cannot report a drive by loss draft as 100% complete if the scope includes repairs you cannot view to verify. Those repairs have to be deducted from the % complete.
Take all required photos. Be aware that outbuildings, detached garages, carports, porches, gazebos, etc. will have the same exterior damage as the main structure, so make sure you take photos of these as well.
If the drive by is a PCR (Property Condition Report) from MCS, then report the % complete as 1%. You must also verify the occupancy of the property, and if the property is vandalized or demolished. Please include the required information in the comments of the form on EZ and on the client signature document. To determine if an order is a PCR, please read the client’s special request provided on all orders in the directions.
Thanks,
Dwain Neff
