Audit Insures Compliance with Sensitive Financial Privacy Rules
February 6, 2012 - San Diego, CA – Quality Claims Management Corporation, (http://www.qualityclaims.com/) a nationwide expert in delivering public adjusting and claims administration, consulting and monitoring services, today announced that it has achieved Statement on Standards for Attestation Engagements (SSAE) No. 16 compliance, one of the most stringent auditing standards for service providers.
The successful completion of the SSAE16 Audit differentiates Quality Claims Management Corporation from other public adjusting firms by demonstrating its commitment to protecting client information. The Independent Service Auditor’s Report certified that Quality Claims adheres to high standards, follows required procedures, and employs proper IT security controls to protect client’s data in accordance with industry best practices. The audit was conducted by Brightline Certified Public Accountants, who reported that Quality Claims operates with integrity and ethical values and demonstrates a commitment to competence.
The new service organization reporting standard, Statement on Standards for Attestation Engagements (SSAE) No. 16, is now effective as of June 15, 2011. SSAE16 and supersedes Statement on Auditing Standards (SAS) No. 70, a rigorous auditing standard developed in 1998 by the American Institute of Certified Public Accountants (AICPA) . SAS70 became widely adopted following enactment of the Sarbanes-Oxley Act of 2002.
"Our clients can rest assured that Quality Claims is committed to maintaining the highest standards in data protection,” says company President Ron Reitz. “The SSAE16 audit provides our clients with an affirmation that the firm’s privacy processes are effective and adequate controls are in place and working.”
Wednesday, February 8, 2012
Monday, December 19, 2011
Insurance Commissioner Dave Jones Warns Californians to Prepare Now for Forecasted Winter Storms
Reminds Residents That Standard Homeowners Policies Do Not Cover Flood Damage; and Flood Insurance Policies Typically Take Effect 30 Days After Purchase
Weather forecasters predict severe storms will hit parts of already fire-impacted California early next year. Insurance Commissioner Dave Jones urges residents to review their insurance coverage regularly, including supplemental policies like flood insurance, and to conduct an inventory to ensure that their home and possessions are properly covered.
"Flooding can occur anywhere," said Commissioner Jones. "I strongly encourage all homeowners to document their possessions before any type of disaster strikes. It's stressful enough to lose your belongings when severe weather hits. But being prepared by having good records, including serial numbers, so you can better replace your possessions can lessen the blow."
Commissioner Jones reminds residents that in California, most standard homeowner's insurance policies do not cover mudslides. Residents are urged to contact their insurers to determine exactly what their current policies will cover and if buying flood insurance is the right option for them. A flood insurance policy typically takes effect 30 days after it is purchased. So with heavy rains predicted in the coming weeks and during the first three months of next year, now is the time to consider your options.
In 1968, Congress created the National Flood Insurance program (NFIP) in response to the rising cost of taxpayer-funded disaster relief for flood victims and the increasing amount of damage caused by floods. According to the Federal Emergency Management Agency (FEMA), flood insurance covers building contents. The cost is determined by several factors, including the region's flood risk, year the structure was built, and type of structure insured (residential versus commercial, single-family versus multiple-family).
FEMA manages the NFIP, which makes federally backed flood insurance available to homeowners, renters, and business owners in communities participating in the NFIP. According to the National Flood Insurance Program, in California, less than 255,000 households are protected by flood insurance, which equates to fewer than 2.5 percent of residents and business owners having flood insurance. To assess your need for flood insurance, go to the California Department of Insurance web site at http://www.insurance.ca.gov/. Additionally, the NFIP offers flood related bulletins and newsletters.
For more information about documenting your possessions or to receive a free home inventory guide, call the California Department of Insurance at 800-927-HELP or visit our web site.
Please visit the Department of Insurance Web site at http://www.insurance.ca.gov/. Non media inquiries should be directed to the Consumer Hotline at 800.927.HELP. Callers from out of state, please dial 213.897.8921. Telecommunications Devices for the Deaf (TDD), please dial 800.482.4833.
Weather forecasters predict severe storms will hit parts of already fire-impacted California early next year. Insurance Commissioner Dave Jones urges residents to review their insurance coverage regularly, including supplemental policies like flood insurance, and to conduct an inventory to ensure that their home and possessions are properly covered.
"Flooding can occur anywhere," said Commissioner Jones. "I strongly encourage all homeowners to document their possessions before any type of disaster strikes. It's stressful enough to lose your belongings when severe weather hits. But being prepared by having good records, including serial numbers, so you can better replace your possessions can lessen the blow."
Commissioner Jones reminds residents that in California, most standard homeowner's insurance policies do not cover mudslides. Residents are urged to contact their insurers to determine exactly what their current policies will cover and if buying flood insurance is the right option for them. A flood insurance policy typically takes effect 30 days after it is purchased. So with heavy rains predicted in the coming weeks and during the first three months of next year, now is the time to consider your options.
In 1968, Congress created the National Flood Insurance program (NFIP) in response to the rising cost of taxpayer-funded disaster relief for flood victims and the increasing amount of damage caused by floods. According to the Federal Emergency Management Agency (FEMA), flood insurance covers building contents. The cost is determined by several factors, including the region's flood risk, year the structure was built, and type of structure insured (residential versus commercial, single-family versus multiple-family).
FEMA manages the NFIP, which makes federally backed flood insurance available to homeowners, renters, and business owners in communities participating in the NFIP. According to the National Flood Insurance Program, in California, less than 255,000 households are protected by flood insurance, which equates to fewer than 2.5 percent of residents and business owners having flood insurance. To assess your need for flood insurance, go to the California Department of Insurance web site at http://www.insurance.ca.gov/. Additionally, the NFIP offers flood related bulletins and newsletters.
For more information about documenting your possessions or to receive a free home inventory guide, call the California Department of Insurance at 800-927-HELP or visit our web site.
Please visit the Department of Insurance Web site at http://www.insurance.ca.gov/. Non media inquiries should be directed to the Consumer Hotline at 800.927.HELP. Callers from out of state, please dial 213.897.8921. Telecommunications Devices for the Deaf (TDD), please dial 800.482.4833.
Friday, October 14, 2011
Homeowners and Renters Now Have No Excuse for Not Documenting their Possessions for their Insurance Policy
“Choosing the best home inventory application before you get started can mean the difference between successfully completing an inventory and never finishing,” adds Mr. Reitz.
SAN DIEGO, CA – October 20, 2011
Quality Claims Management, (http://www.qualityclaims.com) a national leader in Public Insurance Adjusting, today announced that it has entered into a partnership with DocuHome to provide the best possible online home inventory and asset protection services.
Over the years, the Quality Claims team has helped thousands of fire, flood and disaster victims and learned that one of the biggest challenges is a homeowner’s lack of any reliable inventory of their possessions. Following a disaster, insurance companies need a complete and up to date inventory of their policy holder’s possessions in order to fully reimburse them for their loss. However, creating a complete and accurate inventory list AFTER a disaster is nearly impossible.
“We always tell people to prepare their home inventory list before they need it, before a disaster actually strikes,” says Ronald Reitz, President of Quality Claims and First Vice President of NAPIA, the National Association of Public Insurance Adjusters. “However, most people never get around to it. They are too busy, it’s too complicated, or they think they are unlikely to really need it. We have heard every excuse! That is why we have partnered with DocuHome.”
DocuHome is the fastest and most complete home inventory software available. By using any digital camera or even a phone camera, the DocuHome step-by-step process makes creating a home inventory simple. Not only is it easy to use, it is very affordable – about $69 a year!
Homeowners and renters start by taking photos of their home and its contents, room by room. After uploading the photos to their DocuHome account, they use the innovative DocuHome Tagging Inventory Creation Tool to tag the items (furniture, appliances, artwork, toys, electronics) in each photo with information about cost, purchase location, when acquired, and other relevant information about its value. Once the information is securely stored with DocuHome, it is safe and protected from any kind of disaster.
“We are proud to have partnered with Quality Claims Management, recognized nationally as the leader in recovery assistance for disaster victims. Quality Claims Management's unparalleled expertise in policy coverage is critical guidance in DocuHome's mission to help homeowners be prepared if a loss should occur," says Bradford Stanley, Chief Executive Officer of DocuHome. “Not only is DocuHome very secure, as all the information is stored online, the program is easy to use and some have said, fun.”
“Choosing the best home inventory application before you get started can mean the difference between successfully completing an inventory and never finishing,” adds Mr. Reitz.
Friday, September 9, 2011
Quality Claims Management Launches New Recovery & Audit Services for the Mortgage Servicing Industry
Programs assist homeowners in avoiding foreclosure and help mortgage servicers reduce servicing losses.
Sept 6, 2011 - San Diego, CA - Quality Claims Management (http://www.qualityclaims.com) announces its expanded offerings to the mortgage servicing industry. Quality Claims currently specializes in maximizing damaged property insurance claim settlements for banks, mortgage servicers and investors on their foreclosed and re-possessed properties.
These new Quality Claims programs provide expanded options in the areas of mortgage insurance claims, hazard claims and property inspections. The focus is on promoting process efficiencies, regulatory compliance, and best practices. Accurate and expedited claim resolution can mean a reduction in curtailments, re-purchases, foreclosures, carrying costs, and a smaller post-foreclosure portfolio.
"Quality Claims’ expansion into mortgage insurance claims is a natural extension of our team’s competencies. Our audit programs enable clients to take advantage of our company’s long-time focus on compliance and vast experience in managing loss recovery in many facets of default servicing” says Quality Claims' President Ronald Reitz.
"Quality Claims’ expansion into mortgage insurance claims is a natural extension of our team’s competencies. Our audit programs enable clients to take advantage of our company’s long-time focus on compliance and vast experience in managing loss recovery in many facets of default servicing” says Quality Claims' President Ronald Reitz.
New Initiatives include:
Mortgage Insurance Claims Management
Quality’s experienced claims team manages the entire process including filing claims, ensuring quick delivery of documentation to the carrier and providing complete tracking from eligibility to payment.
Forged Loss Draft Recovery
There is a risk whenever a borrower negotiates a loss draft without the servicer’s endorsement and does not restore the property. Quality manages the entire process of investigating, negotiating with the insurance company, execution of legal documents, and funds recovery.
Loss Draft Processing
Quality provides comprehensive handling of all loss drafts, strictly adhering to client/investor guidelines.
Claim Audits (Hazard and Mortgage Insurance)
Licensed, experienced professionals review completed claims for accuracy, compliance, and timeline performance. Line items may have been missed, and there may still be opportunities to pursue supplemental claims.
Loss Mitigation through Direct Claims Assistance for Borrowers
Borrowers may be in default or facing a forbearance deadline due to a delayed or denied property insurance claim. Through expedited claim resolution, Quality's licensed public insurance adjusters directly assist in getting the homeowner’s loan performing again. This program is also customized to assist victims of widespread disasters such as hurricanes and tornadoes.
Property Inspection and Preservation Consulting
Quality’s default servicing and property preservation experts review internal inspection procedures for effective cost controls, and compliance with all investor guidelines and local code enforcement. Processes are evaluated to ensure proper quality controls, reporting, vendor services agreements, performance metrics and oversight.
Mortgage servicing teams are facing increased scrutiny and unique challenges on several fronts. Many are looking for reliable partners to gain efficiencies and ensure compliance in insurance recovery and collateral protection. Quality Claims Management, a trusted leader in hazard insurance recovery, is leveraging its expertise in default servicing to meet this demand.
About Quality Claims Management Corporation
Quality Claims provides hazard insurance claims management and other recovery services to investors, mortgage servicers, homeowners and businesses. All claims are adjusted for an equitable settlement and accelerated resolution timelines. Quality Claims is a compliance leader, nationally licensed as Public Insurance Adjusters or Insurance Consultants and complies with Department of Insurance regulations. Contact Quality Claims Management at (866) 450-1183 or http://www.qualityclaims.com.
Monday, June 13, 2011
When Mortgage Servicers Handle Hazard Insurance Claims In-House: Four Best Practices
by Ronald R. Reitz CPPA
Considering the multitude of issues affecting mortgage servicers, administration of hazard insurance claims may not get much focus. However, the level of management and expertise allocated to this area can mean the difference between a successful loan payoff and a complete loan charge off. Being proactive and reporting claims in a timely manner can save thousands of dollars in losses on a damaged asset. Mortgage servicers have options for managing hazard insurance claims including partnership with an outsource provider, or managing the process internally. When choosing the latter, a servicer should consider several industry best practices.
1) Claim Identification & Reporting: Are you properly identifying insurable damage? There is a distinction between damage and insurable damage. Insurable damage should be covered under the borrower’s policy or the lender placed policy in effect at the time of the loss. The servicer should only submit claims that are covered under the policy. Filing on non-covered losses places undue burdens on your lender placed carrier. It also can increase the lender placed insurance premiums ultimately absorbed by the investor. Filing unnecessary claims also can cause a drain on the servicer’s valuable and scarce resources.
A note on coverages: Insurance policies generally cover all risks except those specifically excluded in the homeowner’s policy. However, some homeowners may not have full coverage and choose to purchase a policy that only covers fire damage. With this type of coverage, common losses like burst pipes, vandalism and theft would not be covered. Some homeowners can only obtain coverage from their state’s fair plan. These are state run programs that provide insurance to homeowners unable to obtain a policy due to being in a high-risk area or other high-risk issues. It is also important to make sure claims are reported to the flood and wind carriers in required states and coastal locations. Servicers should remain current on changes to FEMA flood maps and states’ requirements for wind policies.
When evaluating damages and determining insurance coverage, a servicer should also pay particular attention to condominiums, Planned Unit Developments, and other Community Associations’ policies. Homeowner Associations or Community Associations typically cover the condominium’s structure and common areas. Generally these policies do not cover the interior fixtures that can include interior doors, lights, cabinets, appliances, flooring, and other similar items affixed to the home. Most assume the homeowner has coverage for these items but often they do not. Mostly optional, tracking this critical coverage can be extremely challenging. When a loan defaults and a servicer becomes aware of a loss, they may find there is no coverage for the interior of the unit. Or, if coverage does exist the servicer is now challenged with tracking the repairs since the insurance payments go directly to the Homeowner’s Association which chooses the contractor and oversees the repairs. Considering a total loss to a condo can exceed $100,000, the exposure here is great.
3) What happened to the money? An insurer will typically issue loss drafts that include the borrower’s name. Even if a foreclosure sale has been completed, the former borrower may still be listed on the loss draft. A significant amount of work may be required to remove the name of the borrower. The servicer should be familiar with the various remedies available to quickly resolve these situations. Additionally, a homeowner may have negotiated the insurance check without obtaining the servicer’s endorsement. Cases like this may not be discovered until the borrower defaults and the insurance company advises the servicer that payment for damages has already been issued to the borrower. Repairs may or may not have been completed. Attempting reimbursement of these funds can be a lengthy process that includes filing police reports and completing affidavits of non-endorsement or forgery. The opportunity to collect can be time barred if discovered years after the insurance check was cashed. Servicers should consider professional assistance as these processes require experience and can become very time-consuming.
4) Make every effort to maintain the borrowers policy: Mortgage servicers should make every effort to maintain the existing retail policy in effect. When the servicer receives notice of policy expiration due to non-payment of premium, the servicer should advance that premium and keep the policy in effect. The benefits are many: It is much less-expensive than a lender placed policy, the deductible may be much lower than the lender placed deductible, and the coverages are generally much broader. Also important, if the borrower challenges the servicer with placing expensive lender placed coverage, the servicer can demonstrate that they exercised diligence in attempting to maintain their retail policy prior to forcing coverage, and these efforts certainly protect the borrower.
Focus, vigilance and efficient processes are needed to maximize hazard insurance benefits on your damaged properties. Insurance case law changes daily and investors are now more focused than ever on reducing losses. Don’t get caught short with out-dated or ineffective processes and procedures.
Author Bio - Ronald R. Reitz, CPPA, President of Quality Claims Management, http://www.qualityclaims.com, pioneered the National Hazard Insurance Claims business of GMAC-RFC (now GMAC-ResCap). After a decade at GMAC-ResCap, Mr. Reitz launched Quality Claims in 2007. He is the past President of the California Association of Public Insurance Adjusters (CAPIA) and is currently an officer on the Board of Directors of the National Association of Public Insurance Adjusters (NAPIA) www.napia.com. Recognized as a leading expert on hazard claims, he serves on many industry panels, and provides consulting and training services industry-wide.
Author Bio - Ronald R. Reitz, CPPA, President of Quality Claims Management, http://www.qualityclaims.com, pioneered the National Hazard Insurance Claims business of GMAC-RFC (now GMAC-ResCap). After a decade at GMAC-ResCap, Mr. Reitz launched Quality Claims in 2007. He is the past President of the California Association of Public Insurance Adjusters (CAPIA) and is currently an officer on the Board of Directors of the National Association of Public Insurance Adjusters (NAPIA) www.napia.com. Recognized as a leading expert on hazard claims, he serves on many industry panels, and provides consulting and training services industry-wide.
Thursday, June 2, 2011
FDIC Report Got You Down? Not Us!
FDIC Report Got You Down? Not Us!
A recent document from the Federal Deposit Insurance Corporation (FDIC) titled “Supervisory Insights” covers findings from an interagency review of default servicing processes and offers examples of effective mortgage servicing practices. The reviewers found shortcomings in a number of servicers’ procedures. The FDIC also recommended that “… these institutions maintain adequate oversight for third party activities and quality control over those…services provided through third-party arrangements.”
Quality Claims is committed to the highest industry standards. Although the FDIC report did not reference
hazard insurance recovery, we believed it was important to examine our own operations to ensure we performed to the highest standards in accordance with the FDIC document and recommendations.
One of the critical points raised in the findings related to properly trained, adequately staffed operational units. Our team has average industry tenure of 15 years; our management team averages 20 years. All our adjusters are fully licensed in multiple states, and we serve on several national industry executive boards. The successful work environment at QCMC is demonstrated by our extremely low turnover rate, at 0% for management and 3% for staff, since our inception four and a half years ago. In addition, we are able to effectively handle volume fluctuations through partnership with our sister companies.
Some of the weaknesses described in the FDIC report include inadequate policies, procedures, monitoring, and oversight; inadequate compliance with legal requirements and lack of maintenance of sound operating environments.
Quality Claims employs our own on-staff technical writer and all policies and procedures for each staff member and function are meticulously documented and available for reference on our company intranet. We are compliant with applicable laws in all states that require public adjuster licensing (including Puerto Rico). Every claim is managed from start to finish by a licensed adjuster with secondary reviews on larger claims by our senior adjusters. Each carrier’s settlements are scrutinized and disputed where appropriate.
Recent Consent Orders issued to servicers by their regulators require servicers to undertake a comprehensive third- party review of risk in servicing operations. The remedies listed by the U.S. Attorney General in Settlement Terms also require that a ”…servicer shall regularly review and asses the adequacy of internal controls and procedures… “
Quality Claims recognizes the importance of third party audits stressed in the FDIC report and has achieved an SAS 70 Type II compliance certification. The Consent Orders also promotes “adequate staffing and systems for tracking borrower documents and information that {is} relevant to foreclosure, loss mitigation, bankruptcy, and other servicer operations.” From the initial referral to final claim payment, our proprietary system has the ability to track, note and document each step of the claim process.
To continue to add value for our clients and realizing the necessity that servicers will be increasingly focused on compliance and efficiencies, Quality Claims has expanded its services to include:
· Mortgage Insurance Claim Management
· Loss Draft Processing
· Claims Audits & Oversight
· Property Preservation and Inspection Process Consulting
All consulting and process reviews will result in the completion of formal, documented policies and procedures manual.
To quote the findings report “The FDIC evaluates activities conducted through third-party relationships as though the activities were performed by the institution itself. “ Quality Claims believes the integrity and diligence we bring to our work can give your company confidence that your expectations for effectiveness and best practices are being met by your hazard insurance recovery provider.
Quality Claims Management Corporation's
professional insurance recovery group manages property claims on behalf of investors and mortgagees. We employ a licensed adjusting team including 4 members with CPPA designation of only twenty five nationwide.
Through knowledge, experience, and diligence, we reduce your loss severity and increase your net result.
http://www.qualityclaims.com/
866-450-1183
A recent document from the Federal Deposit Insurance Corporation (FDIC) titled “Supervisory Insights” covers findings from an interagency review of default servicing processes and offers examples of effective mortgage servicing practices. The reviewers found shortcomings in a number of servicers’ procedures. The FDIC also recommended that “… these institutions maintain adequate oversight for third party activities and quality control over those…services provided through third-party arrangements.”
Quality Claims is committed to the highest industry standards. Although the FDIC report did not reference
hazard insurance recovery, we believed it was important to examine our own operations to ensure we performed to the highest standards in accordance with the FDIC document and recommendations.
One of the critical points raised in the findings related to properly trained, adequately staffed operational units. Our team has average industry tenure of 15 years; our management team averages 20 years. All our adjusters are fully licensed in multiple states, and we serve on several national industry executive boards. The successful work environment at QCMC is demonstrated by our extremely low turnover rate, at 0% for management and 3% for staff, since our inception four and a half years ago. In addition, we are able to effectively handle volume fluctuations through partnership with our sister companies.
Some of the weaknesses described in the FDIC report include inadequate policies, procedures, monitoring, and oversight; inadequate compliance with legal requirements and lack of maintenance of sound operating environments.
Quality Claims employs our own on-staff technical writer and all policies and procedures for each staff member and function are meticulously documented and available for reference on our company intranet. We are compliant with applicable laws in all states that require public adjuster licensing (including Puerto Rico). Every claim is managed from start to finish by a licensed adjuster with secondary reviews on larger claims by our senior adjusters. Each carrier’s settlements are scrutinized and disputed where appropriate.
Recent Consent Orders issued to servicers by their regulators require servicers to undertake a comprehensive third- party review of risk in servicing operations. The remedies listed by the U.S. Attorney General in Settlement Terms also require that a ”…servicer shall regularly review and asses the adequacy of internal controls and procedures… “
Quality Claims recognizes the importance of third party audits stressed in the FDIC report and has achieved an SAS 70 Type II compliance certification. The Consent Orders also promotes “adequate staffing and systems for tracking borrower documents and information that {is} relevant to foreclosure, loss mitigation, bankruptcy, and other servicer operations.” From the initial referral to final claim payment, our proprietary system has the ability to track, note and document each step of the claim process.
To continue to add value for our clients and realizing the necessity that servicers will be increasingly focused on compliance and efficiencies, Quality Claims has expanded its services to include:
· Mortgage Insurance Claim Management
· Loss Draft Processing
· Claims Audits & Oversight
· Property Preservation and Inspection Process Consulting
All consulting and process reviews will result in the completion of formal, documented policies and procedures manual.
To quote the findings report “The FDIC evaluates activities conducted through third-party relationships as though the activities were performed by the institution itself. “ Quality Claims believes the integrity and diligence we bring to our work can give your company confidence that your expectations for effectiveness and best practices are being met by your hazard insurance recovery provider.
Quality Claims Management Corporation's
professional insurance recovery group manages property claims on behalf of investors and mortgagees. We employ a licensed adjusting team including 4 members with CPPA designation of only twenty five nationwide.
Through knowledge, experience, and diligence, we reduce your loss severity and increase your net result.
http://www.qualityclaims.com/
866-450-1183
Tuesday, March 29, 2011
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