| Industry Conference Call Alert Summary |
| Thursday, 01 November 2007 | |
|
Safeguard Properties coordinated and moderated an Industry Conference call as a result of an overwhelming response to recent client alerts concerning the California wildfires, releasing 1st lien information, and State regulations surrounding utility and homeowner association fees (HOA) and their status as a priority or "super lien''.
Due to the urgent nature of required actions surrounding the California wildfires, it was agreed that the Call would focus primarily on strategies surrounding the aftermath of the fires. CA Wildfires FEMA issued a Presidential Disaster Declaration for the areas affected by the California wildfires. Most areas within these regions are now accessible. Below are lists of the zip codes in the declared disaster areas as well as links to specific property address data provided by city contacts. Zip Code List for California Wildfire Emergency Declaration 102307 C ounty of San Bernardino Confirmed Damaged or Destroyed Structures pdf County of San Bernardino Confirmed Damaged or Destroyed Structures Excel City of Poway Preliminary Damage Assessment pdf City of Poway Preliminary Damage Assessment Excel Unincorporated County of San Diego Confirmed Damaged or Destroyed Structures pdf Unincorporated County of San Diego Confirmed Damaged or Destroyed Structures Excel Escondido Homes Damaged by Fire pdf Escondido Homes Damaged by Fire Excel Ranch Bernardo Destroyed Homes pdf Ranch Bernardo Destroyed Homes Excel Rancho Santa Fe Destroyed/Damaged Properties pdf Rancho Santa Fe Destroyed/Damaged Properties Excel San Diego Channel 8 Destroyed Property List San Diego Channel 8 Destroyed Property List Excel San Diego Union Tribune Updated information regarding the accessibility to the affected regions is changing daily. CA contacts advised that the majority of the fires are under control at this time. Claim filing volume has been minimal to date. It is anticipated that material increases in claims filing are expected in the upcoming weeks as mortgagors are able to return home and make contact with their insurance carriers. Potential issues may include the appraised value and loss estimates for damages. Mr. Steven Poizner, the Insurance Commissioner for the State of California has declared an insurance state of emergency as a result of the wildfires. The declaration allows out of state claims adjustors to come to California to process insurance claims. Typically, insurance adjustors have to be licensed in the state. The declaration is expected to provide relief to homeowners in the prompt processing of their claims. Governor Arnold Swarzenegger announced the opening of five local assistance centers in coordination with the Governor's Office of Emergency Services and local governments Governors Declaration. The local assistance centers will serve as one-stop sources for disaster relief services including information on how to replace records lost in the fires, file insurance claims and apply for assistance and housing. Lenders were encouraged to review their portfolios and discuss inspection options with their field service providers. FEMA/disaster inspections will provide additional information at properties including damage levels (light, moderate, severe), contact made, and information pertaining to the surrounding neighborhood. Investor requirements for moratoriums on foreclosure are as follows:
Releasing 1st lien information to the 2nd lien holder Recently, Safeguard noticed trends where a 2nd lien holder requested information regarding the 1st lien holder. The intent of the request is to open the communication channels and ensure that their 2nd lien position is protected and does not get eliminated at a foreclosure sale. Servicers faced roadblocks in getting the 1st lien pay-off without the home-owners approval. Attendees questioned why this information would not be shared if sufficient documentation was provided to justify the request (i.e. mortgage deed). Servicers agreed that they would be willing to provide the information and discussed initiatives to improve communication channels. Stephanie Johnston of Wilshire Credit Corporation (stephanie_johnston@wcc.ml.com) volunteered to implement a contact matrix for servicers. Any Servicer interested in communicating with other lenders regarding 1st lien information should provide Stephanie with a contact name, email, and phone number. A suggestion was offered to request assistance from the Mortgage Bankers Association and utilize their resources in implementing the new contact list. Future Industry Conference Call Agenda Items Due to time constraints, the following topics will be discussed on an upcoming industry conference call.
About Safeguard |
