Mortgage Company Endorsement Glossary
Branch Endorsement: This is an option sometimes available on a non-monitored claim. Basically a mortgage company will allow you to bring your insurance claim check into a local branch, where they will sign off on it on the spot or within a couple of days. It is always a good idea to call ahead to ensure you bring all documents necessary for the endorsement.
Claim: The file opened with your mortgage company in relation to your insurance claim and insurance claim check. This is intended for your mortgage company to record, track, and issue endorsements for insurance claim funds, as well as ensure that the contracted installation occurs. Every mortgage company has a different process in place for their claims.
Conditional Waiver of Lien: This is a commonly requested document by mortgage companies. It basically states that the contractor will release their lien rights upon full payment of the job.
Contractor Estimate: This is something listed by a mortgage company as a requirement on some claims, but the Signed Contract (or a copy of it) is accepted to fulfill this requirement.
Current Loan: As it sounds, this is when you are completely up to date on your loan payments.
Disbursement: A predetermined portion of funds being held by a mortgage company, which are released to a homeowner at various stages of a monitored claim.
Exception: A mortgage company’s agreement to bypass or waive a company policy. This can mean that the mortgage company is bypassing certain parts of the process all together, or that they are partially bypassing a given policy.
Exception Request: A request submitted to a mortgage company requesting an exception of a given procedure. This request does not guarantee approval of an exception.
Final Inspection: An inspection of the property where work was performed, meant to document performance of an installation. This inspection is almost always performed by a third party inspection company hired by the mortgage company.
Final Funds: Final funds are what the mortgage company calls any funds that they are holding or that they have yet to process after the installation at your home has been completed. Final funds can consist of both your final insurance payment(s) as well as any insurance deposit funds that were not released before work completion.
Fund Release: This is when your mortgage company has given the OK for funds to be sent back to you. Funds typically take a few days to be processed once they are released, meaning that the funds will not actually hit the mail for a little while yet after funds are released. This timeline is very unpredictable, for every mortgage company has different processing times.
Insurance Estimate: The document that your insurance company puts together and sends to you to show what is being repaired and what they are paying in coverage for those repairs, broken down by line item.
Loss Draft: An insurance claim check issued as payment of an insurance loss/claim. Most mortgage companies have an entire department committed to the processing of these insurance claim checks.
Monitored Claim: When a mortgage company decides to apply more scrutiny to an insurance claim or an insurance claim check endorsement. This process typically involves extra documentation from the homeowner/contractor, and will almost always require a final inspection after work completion. Insurance funds will be deposited into a restricted escrow account and the check will require all payee signatures.
Progress Inspection: This is the 50% or halfway inspection of a property where work is being performed. This is meant to document half of the work being completed for the purpose of releasing a partial portion of funds being held in a restricted escrow account. We typically tend to avoid this inspection since installation is normally completed after a day or so of being started; for ease sake we just stick to a final inspection.
Release of Funds: Refer to Fund Release.
Restricted Escrow Account: A restricted escrow account is an account opened within your mortgage company, designed to hold insurance claim funds when a claim is declared monitored by a mortgage company. Predetermined portions of the claim check are released at various stages of the job. The most common deposit disbursements are 25%, 33% or 50% of either the insurance claim check or the entire insurance claim (depending on the mortgage company). Oftentimes, there is a 50% work completion disbursement; however, we are accustomed to waiting until the entire job is completed before an inspection is requested.
Third Party Authorization: Authorization or permission granted from you (the homeowner) to the lender (your mortgage company) to discuss the progress of a mortgage company claim with a designated third party (123 Exteriors in this case) without you also being present on the phone at the time of the call. This authorization can be given over the phone or in writing, but writing is preferable as it stays valid for the entire life of the claim while phone authorization is only valid for 24 hours. Information provided through this authorization is solely in relation to the insurance claim and claim funds being processed, and will never include confidential/sensitive personal information. Most mortgage companies will require this authorization before they will speak to us about anything related to your claim.
We're Here to Help
Remember, if you need assistance or advice, the 123 Exteriors Customer Accounts and Claims Dept. is here to help in any way we can. Send us an email at firstname.lastname@example.org or give us a call at (314) 961-6162.