Compliance: Fannie Mae Makes Important Changes to Condo Insurance Requirements
Fannie Mae recently made two important changes to its condominium insurance requirements. The new requirements are effective for all loans with an application date on or after January 1, 2012.
First, Fannie Mae has reversed its prior position and will now accept master or blanket insurance policies for unaffiliated condominium associations or projects. Fannie will accept such master or blanket policies provided they meet various new requirements outlined in the Servicing Guide and Selling Guide.
Servicers will need to obtain the insurance policy as well as all necessary schedules, endorsements, statement of values or other documents to determine whether a policy covers multiple unaffiliated condominium associations and, if it does, if such policy meets Fannie Mae’s requirements.
The second important change involves requirements for HO-6 insurance policies. Fannie Mae previously required that an HO-6 insurance policy must provide coverage in an amount that is no less than 20% of the condominium unit’s appraised value. Fannie Mae now provides that when the HO-6 policy is required by Fannie Mae, the HO-6 policy must provide coverage, as determined by the insurer, which is sufficient to repair the condominium unit to at least its condition prior to the loss.
Fannie Mae also eliminated the use of the term “walls-in” and now addresses when it will require an HO-6 policy with respect to three types of master or blanket condominium insurance policies: “single entity”, “all-in” and “bare walls”.
To view the full text of the Servicing Announcement, click here.
To view the full text of the revised Selling Guide, click here.
If you have any further questions, please send an e-mail to compliance@pfic.com or through our Contact PFI form.
PFI Charity of the Week: Adopt-A-Pet, Inc (Fenton, Michigan)
Adopt-A-Pet, Inc’s long term goals are to continue to find loving homes for homeless dogs and cats as well as assist people in the community to find homes for their personal animals. In addition, we continue to educate the public on the importance of spaying and neutering their pets as well as proper pet care. We have programs to help reduce the amount of animals euthanized in over crowded shelters. We will continue to work with other shelters to find ways to reduce the amount of animals killed in over crowded shelters each day. We look forward to a day when there will be No More Homeless Pets!
Adopt-A-Pet adoption policies are stricter than many people expect. We believe all pets deserve to live in a clean and loving home where their presence is valued and contributions to their human companion are acknowledged. For this reason:
- We carefully screen all adoption applicants.
- We adopt only to homes where the pet will live indoors as a family member. We do not allow pets to be left outdoors while their guardians are at work or away for long periods.
- All pets are fixed prior to adoption. Any other pets in the same household must also be spayed or neutered. NO EXCEPTIONS. We reserve the right to do a home check at any point after the adoption.
- Some of our pets are older or have a medical condition. Special requirements of the adoptive family may have to be met.
- We reserve the right to refuse any adoption and the foster home has a final say in all adoptions.
PFI Encourages Clients to Provide Feedback on Lender Placed Insurance Processes
One year ago, Proctor Financial, Inc. received its ISO 9001.08 certification for the servicing of lender placed insurance, which demonstrates the commitment of PFI’s Senior Management and employees to deliver quality customer service to our banking and financial institution clients.
With the ringing in of the New Year, PFI encourages clients to provide a quality assessment of our lender placed insurance services by taking a few minutes to submit an assessment through an online feedback form located at www.pfic.com/feedback. PFI will review each submitted form and an appropriate ISO 9001.08 team member will contact you directly if further information is required.
PFI’s quality statement is “to be a market leader, unique in service, with unwavering integrity and dedication to excellence in quality and continual improvement.” You can learn more about PFI’s ISO 9001.08 certification by visiting www.pfic.com/iso9001.
If you have any further questions, please contact Valentine Dickerson, Senior Vice President of Compliance, at 248.269.5723 or vdickerson@pfic.com, or Karen Clayton, ISO Managing Representative, at 248.269.1849 or kclayton@pfic.com.
PFI’s Charity of the Week: Gleaners Community Food Bank
For more than 34 years, Gleaners Community Food Bank has been "nourishing communities by feeding hungry people.” Last year, Gleaners distributed 40 million pounds of emergency food to over 577 partner soup kitchens, shelters and pantries in Wayne, Oakland, Macomb, Livingston and Monroe counties.
GCFB alleviates hunger by providing the equivalent of 85,284 meals per day to people in Wayne, Oakland, Macomb, Monroe and Livingston counties who otherwise cannot afford the food they need. They do this by utilizing highly efficient technologies to manage inventory, engaging more than 32,000 volunteers in our work, and acquiring large quantities of donated or low-cost food from a variety of local and national sources.
Of every dollar donated, Gleaners uses 96 cents for food and food programs. One dollar provides three meals for a hungry neighbor. For more information or to make a donation, you can go to www.gcfb.org. This charity day was sponsored by Sue Wardzinski, Vice President of Lender Solutions.
FEMA’s Update Regarding the National Flood Insurance Program Reauthorization
On December 23, President Barack Obama signed the Fiscal Year (FY) 2012 omnibus appropriations bill that includes a provision which will extend the National Flood Insurance Program through May 31, 2012. At this time, FEMA has posted the following PDF document. Here is a link to that document which was issued by FEMA on December 15, 2011 for Write Your Own Principal Coordinators. Read more at FEMA.
Employees Share Smiles, Gifts and the Holiday Spirit of Giving
With the holiday season officially kicking off this weekend, Proctor Financial, Inc. and its employees took some time this past week to delivery some early Christmas cheer for a few local needy families through generous donations.
Through the charity Share-A-Smile, a few departments collaborated to purchase numerous items such as clothing, blankets and even a few toys gift wrapped and ready for placement under the tree. These departments included Lender Solutions, Lender Services, Accounting, Contract & Policy Services and Underwriting.
In a family affair, Sandy and Devon Boni of Contract & Policy Services, also welcomed home current Marine and former PFI employee Andrew Boni by donating to the Toys For Tots program.
PFI’s Sales team also generously fulfilled the wish list of winter clothing, blankets, school supplies, gift cards, bus passes and other items for one local family. A special thank you goes out to the Sales Support staff for wrapping the gifts, gathering the items and taking them to a mom who was all smiles afterward.
As PFI’s employees shared these special gifts with these families, we also want to share pictures from these events with you. You can view photos by visiting our page on Facebook at www.facebook.com/proctorfinancialinc.
May the closeness of friends, the comfort of home and the unity of our business partnership renew your spirits this Holiday Season!
Season’s Greetings and Best Wishes for the New Year from Proctor Financial, Inc.
PFI Charity of the Week: The Salvation Army’s “Red Kettle” Campaign
The Salvation Army's traditional Red Kettle Campaign has hit a few bumps this holiday season. It is our time as a PFI family to step it up. The fundraising effort will come to a close in a few weeks and the organization is far from reaching its fundraising goal. The group, which serves all of metro Detroit, is hoping to raise $8.2 million. The group is currently $5 million short of its goal.
The money raised each year goes toward providing food and shelter to thousands of people in need. The Salvation Army actually increased its goal from last year because the need is so great.
In this new century, The Salvation Army is serving more people in the USA than ever before. They are already seeing large increases in the number of Americans seeking the basic necessities of life - food, shelter, and warmth. More than 30 million people received help from The Salvation Army in 2008, but the magnitude of the mission facing The Salvation Army in communities throughout the United States remains great.
For more information on The Salvation Army please visit www.salvationarmyusa.org. You also can make a donation by going to https://donate.salvationarmyusa.org/. This week's charity day was sponsored by Kimleeta Davis in Lender Solutions.
National Flood Insurance Program Deadline Friday With Extension Split Between House, Senate
Will the National Flood Insurance Program stay the way it is or will it go toward reforming some measures to better suit the market? The political clash between the Senate and House over the NFIP has become a broken record of sorts with four extensions in the last four months including this Friday’s impending deadline.
Since the November 18th deadline and PFI’s last blog update, the Senate passed S. 1958 to extend the NFIP through May 31, 2012. According to a recent article from the National Association of Realtors, the NFIP remains mired in “election year politics between Senate leaders” including a “laundry list” of year-end measures such as payroll tax holiday and an extension of unemployment benefits.
In turn, the House packaged a five year extension of the NFIP into a deal that also would support extending expiring tax cuts desired by House Republicans and an extension of jobless benefits for the long-term employed. By packaging the NFIP with the tax cuts, the White House pledged a veto of this measure and the Senate also stated it would not approve the bill, according to a recent article from PropertyCasualty360.com.
If a NFIP lapse does occur, the housing market would see additional strain as homeowners and buyers in FEMA-designated flood zones are legally obligated to have flood insurance to qualify for a federally backed mortgage. In 2010, 47,000 home sales were delayed or canceled when the NFIP lapsed for 53 days in 2010 according to the National Association of Realtors. An estimated 20,000 communities across the United States would be affected if a lapse occurs after this deadline.
Proctor Financial, Inc. Teams with ICG to Offer Integrated Tax Services
We are pleased to announce that our parent company, Brown & Brown, Inc., recently acquired Industry Consulting Group, Inc. ("ICG"), a leader in providing integrated property tax solutions for mortgage servicers and industry clients since 1986.
Proctor Financial, Inc. ("PFI") and ICG will now be offering its respective clients integrated tax and insurance solutions to streamline escrow administration and enhance borrower relationships. With ICG’s knowledge and proficiency in property tax administration and PFI’s expertise in insurance tracking and borrower call center management, all of us at PFI look forward to offering this expanded suite of services to our lender placed and tracking clients.
If you are looking to consolidate your vendor relationships in tax and insurance now or in 2012, please give us a call to discuss how we may be able to assist you. Please contact Diane Whipple at (800) 521-6800 ext. 1464 or dwhipple@pfic.com for more information.
PFI Charity of the Week: National World’s AIDS Day, Worlds AIDS Day Detroit
In an effort to provide knowledge, testing, prevention and treatment to our youth and the many others who are in need, this week's charity donations will go to the efforts of the local non-profit organization, “World AIDS Day Detroit.” HIV/Aids is not at all gender nor race specific. It also affects children – some that are born with the disease, some that lose parents to the disease. Although this is a hard topic to discuss, it is a problem that must be addressed in order to promote awareness and prevent the spread in our current and future generations.
Below I have included information about the organization and their pursuit in reaching the goal of Getting to Zero.
Since 1981, 60 million people worldwide have been infected with the HIV virus, and 25 million have died. Yet, in the 30 years between then and now, we’ve come farther than many probably thought possible. It’s true. You don’t hear as much about HIV/AIDS in the news today. There’s no longer the headline-blaring media coverage or the mounting fear.
Despite that, HIV/AIDS does continue to have an alarming impact on our world. Each year, two million people still die as a result of the disease. Which means, there’s still progress that needs to be made.
In honor of anyone who has been affected by HIV/AIDS, all across the world, the only thing we can do is persist until we get to zero.
- ZERO new infections
- ZERO AIDS-related deaths
- ZERO discrimination
© Copyright 2012 Proctor Financial, Inc.
