Clint Eastwood, whom portrays SFPD Inspector Harry Callahan in Dirty Harry, poignantly brings the question of having the right insurance into view within the Mortgage Field Services Industry,
I know what you’re thinking: ‘Did he fire six shots or only five?’ Well, to tell you the truth, in all this excitement, I’ve kinda lost track myself. But being this is a .44 Magnum, the most powerful handgun in the world, and would blow your head clean off, you’ve got to ask yourself one question: ‘Do I feel lucky?’ Well, do you, punk?
I was speaking with a member of Management the other day whom was in a quandary about how to approach Labor with respect to Insurance Requirements. Fact of the matter is that his complacency led to the potential for tens of thousands of dollars which will ultimately come out of his pocket. I know, why in the hell is Foreclosurepedia giving two shits about some rich ass member of Management getting raked over the coals, you might ask? Glad you did!
Whenever you have an unregulated environment, such as the Mortgage Field Services Industry, you have to observe everything as suspect from jump. Two hallmarks of the Industry are first, Management slants the deck to ensure Labor looses most of the time. Second, Management is terrified of stepping to the plate when it is wrong as Labor will swarm them like a horde of locusts.
A California based firm decided to roll the dice and did exactly the opposite. Speaking with Foreclosurepedia last week, the owner related the story of how a Contractor — and I am loathe to use that term — had botched a job and the Portfolio Holder wanted to be made whole.
When you drop money into a slot machine in Las Vegas, you know that your chances of winning are virtually zero. Risking a dime or a quarter may be worth it to you if the potential payoff is great enough. Insurance in kind of like that — if it is not properly written.
For Management to say you must use York – Jersey, Brunswick Insurance, Leonard or anyone else for that matter is both unethical and illegal. This would potentially violate the Sherman Act and if, as Michelle Hirsch, Senior Vice President of Brunswick Insurance denies in our Foreclosurepedia Podcast, there is Rebating going on, it could also be healthy prison sentences across the board.
So, how does Management go about insuring that they are covered against the potential of liability on the Contractor’s end? It is as easy as requiring that the insurance provided by the Contractor meets an Industry Acceptable Policy originating from an Underwriter.
When those within Labor and Management skirt proper Insurance Requirements it HURTS EVERYONE! Everyone must purchase the same product; what they pay depends if they want to reward Eric Miller, National Association of Mortgage Field Services (NAMFS) Executive Director. Miller, whom receives over ONE HUNDRED AND TWENTY THOUSAND DOLLARS PER YEAR CONSUMING NEARLY SEVENTY PERCENT OF ALL MEMBER DUES and has, in my opinion, unjustly enriched himself and his family upon the backs of Labor, is the biggest reason why the Industry has become a cesspool of criminality.
The Hanover Insurance Group has a standard policy which it underwrites for many insurance companies in the Industry — State Farm is able to provide it as well so the Big Four whom bleed Labor dry and refuse to pay when called upon, like Jonnie Rumbaugh of York – Jersey is doing with respect to HardKore Preservation with Safeguard Properties claims, is a classic case-in-point of monopolization.
Below is a typical, redacted Accord Sheet for my former $2 Million General Liability and $1 Million Errors & Omissions policy,
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We will expound upon this tomorrow and show an actual policy and speak with an Industry Professional to help walk Labor and Management through ridding themselves of both the Industry’s Insurance Mafia’s stranglehold and how to protect everyone!