Welcome to the first issue of Perspectives…

Care and Feeding of REO Properties

Most lenders are careful to maintain appropriate insurance coverage on their Real Estate Owned (REO) properties. However, from a claims standpoint, some may not have optimum procedures in place – a requirement that starts with documentation and due diligence.

The most common problem with REO insurance claims is demonstrating to the insurance company that a covered loss occurred within the effective dates of their policy. Therefore, the first step in reducing denied claims is to thoroughly document the condition of the property when it reverts to the lender or is otherwise first acquired.

Guidelines developed by national mortgage loan servicers and property preservation firms typically include these specific steps to help speed processing and minimize denied REO insurance claims:

Secure and change locks on property within 24 hours of vacancy determination. Provide a full photo report on vacant property within 24 hours to your asset manager or loan servicing representative. Report should include dated photos of:

Perform ongoing property inspections and take photos every 2-3 weeks, making sure photos include date, proof of property address, any evidence of occupancy, and exterior condition. Submit photos of any damage not previously documented to asset manager within 48 hours.

Winterize vacant properties located in AK, CT, IA, IL, IN, MA, ME, MI, MN, MT, ND, NE, NH, NY, OH , PA, RI, SD, VT, and WI within 48 hours of vacancy determination. Winterize vacant properties in all other states within 48 hours of vacancy determination if between October 1 and March 31. Winterization includes:

Confirm that sump pump is working properly. Keep electricity on if the sump pump is needed to keep the basement or crawl space dry. If the sump pump does not work, replace it immediately.

REO insurance is a portfolio protection must for today’s lenders. The right property inspection and documentation procedures are the best assurance of efficient, effective claims resolution.

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Compliance Resources Strengthened

Lenders and mortgage servicers are faced with an increasing and continually evolving array of regulatory standards and compliance issues. Staying on top of this changing regulatory landscape can be a daunting task. To help its clients navigate this challenging terrain, Proctor Financial has created a new compliance department under the direction of Proctor Financial veteran and Senior Vice President-Compliance, Valentine M. Dickerson. To further demonstrate our commitment to assist our clients with compliance issues, we have hired Caron P. Cebulak as a certified paralegal. Caron joins Proctor Financial with eight years of experience in the corporate legal environment at Citimortgage Incorporate. Caron’s wealth of knowledge and expertise with mortgage related compliance issues will ensure current, up to date compliance information on Proctor Financial’s website.

Expanded client compliance resources are housed within a dedicated password-protected section of the Proctor Financial website. Clients and agents can click here to obtain required user IDs and passwords.

The new Compliance Resources section encompasses a wide range of government and industry information including:

Proctor Financial Honored by Brown & Brown

Proctor Financial has been recognized for outstanding performance in 2008 by Brown & Brown, Inc. (B&B), the nation’s ninth largest independent insurance intermediary and Proctor Financial’s parent company. The “Program Office of the Year” award – which Proctor Financial also won in 2005 – is presented annually to the business unit of B&B’s Programs Division demonstrating the best ability to meet market demands and satisfy their customers. Proctor Financial was competing with 23 other B&B Programs Division offices for the award. Proctor Financial also won the "Presidents Award" for overall excellence, taking top honors among 180 B&B offices.

In addition to taking top overall honors, Proctor Financial saw several team members recognized for exceptional individual achievement. Regional Vice President John Neubauer won “Programs Pacesetter of the Year” honors, Chief Administrative Officer Mohamed Elewa earned the "Treasurer's Award" for outstanding performance, and Sales Executive Damon Laprade was named “Programs Rookie of the Year.”

“This level of recognition is unprecedented,” noted Laprade. ”However, it’s important to remember that, at Proctor Financial, individual awards truly represent the efforts of the total team. Every role is critical to our continued success. Every customer phone call, every claim adjusted, every underwriting decision – every single customer interaction contributes to the product we deliver to our clients.”

Service Award Presented

Diane Schulte has been recognized for 20 years of service by company President and CEO Paul Glantz, who presented the award during Proctor Financial's latest quarterly meeting.

Over the course of her career at Proctor Financial, Diane has built an impressive record of accomplishments in sales and customer service. In 1991, Diane accepted Proctor Financial's first "Quality of Service" award for outstanding customer service. She went on to win several awards from Proctor Financial’s parent company, Brown & Brown, Inc. (B&B) including the Tangle B – 2006 (Gold Member) and Tangle B – 2007 (Silver Member). In 2000, she was named Proctor Financial District Sales Manager and soon became a member of B&B’s $1.5 Million Book of Business Club.

Our agents and clients have worked with Diane during the past nine years in her role as Manager/Sales Executive of our Agency/Brokerage business. In addition, Diane has been extensively involved in the development of Proctor Financial’s Internet-based InForcer technology that assists our agents and clients in reporting. In her spare time, she has also served as a Liaison Board Member for the Association of Financial Insurance Brokers, a post she held from 2005 through 2008.

Proctor Financial is proud to have Diane Schulte as part of our team!

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Share A Smile: Tapping the Power of Partnership

“Value Through Partnership” – the promise made to every Proctor Financial client − goes well beyond daily business relationships. The Share A Smile program, created by Proctor Financial client Flagstar Bank, is a clear example.

Share A Smile is a Michigan-based charitable organization founded in 1999 to address the unmet needs of ordinary citizens struggling with financial crisis. In 2008, Share A Smile offered direct assistance to over 4,000 individuals and families throughout Michigan and Indiana affected by unemployment, health crisis or natural disaster meet the basic necessities of life – housing, warmth, food, education and medical expenses. To fund its outreach programs, the organization hosts various fund raising events throughout the year.

One of those events will unfold this spring, when the 3rd "Smile with Style" Fashion Show is held on Saturday, May 9. Susan L. Moscareillo, Executive Director of Share A Smile, invited Proctor Financial Senior Vice-President Val Dickerson to be on the planning committee for the fashion show event.

The committee has been busy drafting plans for an afternoon filled with fun, friends, and fashion. According to chairperson Rosalinda Hunt, the event will feature complimentary pampering from hair and make-up experts, as well as musical artists, dance performances, hors d’oeuvres from local restaurants, a valuable gift bag, and, of course, the always exciting fashion show.

Five-hundred guests, including community and civic leaders, corporate benefactors, VIP’s and other supporters, are expected to be on hand. The event will be held at the Royal Oak Music Theater in Royal Oak, Michigan.

“Working with Flagstar Bank on behalf of the Share A Smile program is a natural extension of Proctor Financial’s Value Through Partnership philosophy,” noted Paul Glantz, President and CEO, of Proctor Financial, Inc. “We’re proud to be part of an effort that’s making a real difference to people in our community.”

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A Better Way to Protect Your REO Assets

In today’s volatile real estate market, protection of Real Estate Owned (REO) assets is more important than ever. What’s needed is a solution offering broad coverage options without the burdensome and costly administrative requirements often associated with package policies and conventional REO insurance programs. Proctor Financial’s REO Guard^® offers lenders and servicers a number of ways to simplify and streamline insurance administration that will reduce costs.

Proctor Financial’s REO Guard is unique. We have bundled our insurance services with property inspections at the time of acquisition to ensure your REO assets are protected on the date of ownership. The lender simply contacts Proctor Financial's partner, First American, and orders inspection services five days prior to property sale, and First American guarantees an inspection will occur on the sale date. Inspection services include exterior and interior (through window where possible), verification of air conditioning unit(s) and four (4) photographs of structure, with all damage noted. Proctor Financial typically provides these inspection services at no charge to the lender because we believe this valuable service will mitigate loss for our clients.

Proctor Financial’s REO Guard also provides broad insurance coverage tailored to each lender and servicers insurance needs. For instance, REO Guard can be bundled with flood (Bridge60^®) and liability for a complete coverage solution. Other policy enhancements can include residential theft and loss-of-rent coverage. Flexibility extends to billing options, too. Properties can be invoiced monthly in-arrears to minimize outgoing cash flow.

With REO Guard, claims are settled at replacement cost versus actual cash value − even if the property is not repaired. Mobile home claims are settled at actual cash value. Automated reporting and tracking further relieve administrative and compliance headaches.

Over 1600 lenders and mortgage servicers nationally depend on Proctor Financial’s lender-placed insurance solutions. To learn more about our REO insurance solutions, email us at proctorsolutions@pfic.com or call us toll-free at (800) 521-6800.

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Make Your Computer a Virus-Free Zone

Our computers keep us connected, informed and productive. When they go down, we go down. That’s why it’s so important to protect your computer from viruses and other harmful attacks – unwanted self-replicating programs spread via infected email attachments, shared files or malicious websites.

The first step to keeping your computer virus-free: be sure it includes up-to-date anti-virus software before installing new programs or connecting to the Internet.

It’s important to remember that anti-virus software is reactive, generally providing protection only after a new virus has been spawned.  Here are a few suggestions for safeguarding your computer against new or unknown viruses:

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