In today’s environment we’re living with restrictions posed by the COVID-19 pandemic, and remote solutions that give us flexibility and optionality are more important than ever. The housing industry is moving toward a more digitized end-to-end loan manufacturing process to benefit all the housing ecosystem players. Servicers continue to report that their top priority is enhancing their business through digitization, smarter technology and greater automation.

On July 15, 2020, we introduced policy changes around insurance loss-settlement claims, which announced that property inspections can now be virtual. A remote inspection can be employed in lieu of a physical one to confirm the progress or completion of repairs at the property.

A Real Life Example

Let’s look at how this would work today  – a homeowner who has a ceiling leak in the basement that has caused severe damage to the dry wall and carpet needs to have the repairs assessed. Something that would typically involve an in-person assessment to ensure repairs are underway can now be done using virtual/online apps to submit video and/or photos of the damage. With social distancing measures in place during the pandemic, the idea that a homeowner doesn’t need to physically allow someone to enter their home to perform these services is a major benefit. In another scenario, let’s say an inspector cannot come onsite due to scheduling conflicts with the homeowner; in this instance the remote functionality allows the service to continue without inconveniencing either party.

In the scenarios described above, the homeowner also has more flexibility now when selecting a contractor to perform the work. Previously Servicers would have to enforce certain requirements about the contractor being insured, bonded or licensed, even in circumstances where there were no state regulations. Servicers can now save time by no longer having to validate contractors based on this criterion, and homeowners can select their own contractor(s) without needing Servicer approval.

“We’re bringing self-service to life with the new remote loss-settlement enhancements that empower the borrower,” says Bill Maguire, vice president, Single-Family Portfolio Management. “By equipping them with a more digitized experience and virtual tools at their disposal, we’re helping get resolution from the comfort of their home at their convenience.”

Another area of focus intended to streamline the repair process is expediting the disbursement of insurance proceeds. In the above example with the basement damage, let’s say the insurance proceeds are higher than $40,000. The Servicer would release up to $40,000 initially, and the check would be made payable to both the homeowner and the contractor scheduled to complete the work – which could lead to delays in beginning the repair processes. With the July 15th policy changes, the check will only be made out to the homeowner, resulting in reduced costs to the Servicer and an easier depositing process for the homeowner.

Digitizing the entire servicing lifecycle is near. Visit the Reimagine Servicing® web page to stay attuned to the latest developments.