Estimates and Repairs Overview and Opportunities. Safeguarding our clients interests.

Transcription

1 Estimates and Repairs Overview and Opportunities Safeguarding our clients interests.

2 Leadership Introduction Greetings from leadership Why what we do is so important

3 Scorecard Review

4 Vendor Scorecard Review Vendor scorecard explanation ERD expectations Why scores are so important Two-way proactive communication regarding scorecards Automation Vendor Web commitment dates

5 Commitment Dates New functionality within the Vendor Web application. This was added to help prioritize work orders that are due first and by providing Safeguard with your commitment date for the completion of work.

6 Commitment Dates The first two columns are action buttons and can be clicked on to either see the work order details or provide a commitment date for a specific work order.

7 Commitment Dates The last two columns give information on the commit dates: When the actual commit date was submitted The number of times you have given Safeguard a commit date for that order

8 Commitment Dates If commit dates are needed, there will be a special message at the top of the order page.

9 Commitment Dates The commit date box includes a field to: Put the date you anticipate the work order being completed The root cause of the delay and the current status of the order A comments box if you need to add more details

10 Commitment Dates Root Cause of Delay This box states why the work order is past due: Field capacity o Vendor does not have enough field crews Office capacity o Vendor does not have enough people in the office updating work orders to Safeguard Delay in receiving work o Work was either assigned to the vendor late or reassigned from another vendor

11 Commitment Dates Current Status of Order This box requests the current state of the work order: Not started o Vendor has not began performing work on the property In field, pending completion o Work is being performed in the field, crews are at the property Completed, pending update o Work in the field is complete, but vendor is waiting for office staff to QC and update order in Vendor Web

12 When to Submit a Commitment Date A commit date must be submitted on every past due work order. Vendors will not be able to update any order until commit dates have been entered for every past due work order.

13 When to Submit a Commitment Date A commit date can be entered on orders that are not due yet. This will notify Safeguard of your estimated completion date in case a client or broker is asking. Entering a commit date on a order that is not due yet is optional. If the commit date has expired, you will be required to add a new one which is past today s date.

14 Field Quality Control Perspective

15 Field Quality Control Perspective Quality control inspections are done after completion of repairs. What does field quality control review to determine the status of repairs? Common errors found by quality control as made by vendor Debris left behind Missing the finishing touches Improvements to be made accurately, report what has not been completed on the repair Pride in workmanship No shortcuts

16 Field Quality Control Perspective Why does the vendor need to quality control? To ensure both the client and vendor are protected. To ensure no orders are reopened. To ensure all conditions are captured. Quality control estimates To ensure all work is accurate and complete. To ensure the vendor has captured all possible potential work and money.

17 Field Quality Control Perspective Whose job is quality control? Anyone who touches the work order o o o o Crew leader Worker Updater Owner Best practices

18 Field Quality Control Perspective What is the cost associated with quality control? Lower than the cost of free repairs? Lower than the cost of liability? Lower than the profits gained by identifying and performing the work? How much money are you leaving on the table?

19 Hazard Claims

20 Hazard Claims Overview Evaluator Team Once a damage is reported by an inspector or maintenance vendor, it is reviewed for potential claim filing: All damages are not claimable. Damages must be sudden and accidental (from the perspective of the insured). Expectation to mitigate damages Securing Temporary repairs Clients set additional monetary thresholds for claim filing.

21 Hazard Claims Overview Coordinator Team Responsible for continued follow-up with insurance carrier and claim resolution. Dispute claim denials Verify settlements are reflective of all damages noted Submit supplemental claim requests to insurance carrier

22 Hazard Claims Overview Pre-Loss Condition The insured is not expected to benefit or profit from an insurance settlement. Insurance policies are not rehab agreements or home improvement plans. Painting o o Colors Continuous areas Like-kind materials o HVAC size and documentation

23 Supplemental Claims Scope related issues that may affect the ability to complete repairs: Missed items o Settlement allows for missing plumbing, but not a missing water heater. Missed operations o Scope allows for shingle replacement, but not removal. Labor costs are always included with the cost estimating software. Incorrect materials o Scope allows for replacement with a 2-ton condenser in place of 4-ton. We must be able to document what was in place previously. Hidden or unseen damages Hidden claimable damage may be found once repairs have begun. o Additional plumbing breaks when repairing freeze damage. Not all hidden damages are claimable Roof decking Mold damage in walls

24 Supplemental Claims Vendor related issues that affect the ability to complete repairs: Missed items Settlement allows for missing plumbing, cracked windows, drawing on walls, broken light fixtures, missing smoke detectors not included. o Ways of determining vandalism vs. neglect Pricing concerns If can t complete for approved amount, please re-assign o o Insurance carriers use cost estimating software that are expected to reflect industry standard pricing Documentation needed to support price differences Incorrect measurements Scope allows for 90 lf missing plumbing lines, bid submitted to replace 250 lf. o o Settlement will only allow to replace what was damaged. If the vertical plumbing lines are in place, and connections are intact at the fixtures, the carrier will not allow to replace more than the missing lines in the basement.

25 Supplemental Claims Vendor related issues that affect the ability to complete repairs: Code upgrades Permits Scope allows for replacement of service panel and replacement of wiring in basement at a cost of $2,400. o Bid received states home must be rewired and brought to code for $9,500. o Insurance policies will not allow for code upgrades. o HUD is going to require written documentation from the city requiring repairs before approving. Can we tie into the last junction box on each circuit and pass inspection? Can we add junction boxes in accessible basement ceilings at points where wires were cut, and still pass inspection? Actual permit cost must be documented for both insurance carriers and HUD. Obtain fee schedule on city letterhead.

26 Supplemental Claims Quick Resolution Make it as easy as possible for adjusters to acknowledge they missed something and change their minds: Bids Identify room and dimensions. o Try to list them in the same order as the adjuster. Clearly identify all work being completed to support cost. o Remove, replace, sand, finish, etc. Include clear description of item o If adjuster did not allow like-kind, provide detail to support. Include measurements

27 Supplemental Claims Quick Resolution Make it as easy as possible for adjusters to acknowledge they missed something and change their minds: Supporting photos If plumbing lines need to be replaced, include photos of the empty hangars, cut lines, and holes in cabinets where the lines should be. If scope allows for replacement of AC condenser, and not the line-set or electrical disconnect and whip, we must provide photos to support these items were present or are currently damaged as a result of the theft. Close-up photos of damage are not always better. Include an overview of the room to provide context.

28 New Damage Properties sometimes get re-vandalized in the course of repairs, or immediately after repair completion. Make sure to take photos of work completed every time you leave the property. In order for us to file a second claim for duplicate damages, we must be able to document repairs were previously completed. Provide bids for the missing items immediately. You should be able to put this together quickly by referencing the scope you received with repair approval. Police reports Your repair gives you the best knowledge of what was installed at the property and what is now missing. We will need you to contact the police and report the theft. A copy of the report is not necessary. You should be provided with a report number at the time the report is filed. Please make sure to provide the report number without delay.

29 Recoverable Depreciation Supporting Photos Make it as easy as possible for adjusters to acknowledge they missed something and change their minds: Need to ensure you have after photos to document completion of each line item listed on the scope. One of each is sufficient. One photo may document completion of multiple line items. Label your after photos to avoid confusion and expedited release of funds.

30 Reconvey

31 Convey Cycle Safeguard reports ICC Client conveys to HUD FSM Inspection HUD accepts property

32 FSM Inspections An inspection to determine if the property meets the HUD compliance standard. Expected to be completed hours after property is conveyed to HUD FSM contractors are given a $600 allowable in order to complete the following: Re-secure property Winterize (if needed) Grass cut (if in season) Remove debris Make repairs HPIR filled out and submitted to HUD Used to determined next steps in convey process.

33 HUD Property Inspection Report (HPIR)

34 FSM Inspection Properties not in HUD compliance are subject to the following: Non-performance letter (NPL) Issued when insufficient or improper property preservation work is found at the property. Demand letter Issued when HUD is seeking reimbursement of funds for the following reasons: o o No supporting documentation FSM approved work to bring property to ICC PNOIR (preliminary notice of intent to reconvey) Property does not meet the HUD compliance standards and HUD is intending to return the property to the banks inventory.

35 PNIOR 30 days given to respond to demand. Three options for responses: Appeal to investor (HUD) Appeal to client Accept responsibility

36 Reconvey Properties Once HUD has returned the property to the inventory of the bank, preservation work can resume. Safeguard is responsible for the following while the property is being put in convey condition: o o o Monthly inspections Lawn maintenance Winterization Safeguard will also work with our vendor to make all the necessary repairs on the property. Work completed is billed appropriately to the client based on the determination of responsibility during the PNOIR review process.

37 Reconvey Properties Common Mistakes Roof tarps These are temporary measures and roofs are expected be repaired prior to conveyance. Multiple damages Active roof leaks Water intrusion (non-roof related) Source of mold growth Structural damage o If not repaired or addressed properly can lead to: Mold remediation Water damage Drywall repair

38 Reconvey Properties Significant Costs Curtailments This is interest the bank will not be paid by HUD. Determined by the number of days it takes to put the property into ICC and HUD accepting the property back after the initial 30 day period. Holding costs This is the cost associated with the amount of time the property is in the banks inventory to the time it is re-conveyed back to HUD.

39 Reconvey Properties Significant Costs Repair costs Safeguard may be responsible for some or all of the costs to repair the property. Maintenance costs If Safeguard is responsible, the client cannot be charged for any routine maintenance work (Inspections, GCL, winterizations).

40 Reconvey Properties How You Can Help Report all damages. Including missing items and mortgagor neglect Look for items contractors are not reporting Know the BIG 6 Understand the HUD allowable amounts. This will ensure proper O/A requests and work to be completed timely. Ensure necessary photos are present on each and every post sale order. Photo documentation is our only means of ensuring the property is ICC.

41 National Mortgage Outreach (NMO)

42 NMO Project Program Components Complete site visit, home inspection, and bid on targeted homes. Complete repair (full rehab) of homes with the objective to provide a home in a turnkey condition. Complete post rehab site visit and assess and address (when needed) any move in condition list items called out by client and/or occupant.

43 NMO Project

44 Supplier Based Model