Communication to Retained Branches - Loss Draft Endorsements 11/02/2021

Shown below is a communication sent to retained branches on November 2, 2021 regarding the branch endorsement procedure.


Fairway Branch Offices Endorsing Customer Insurance Claim Checks

Retained Loans Only


Customers who file a property damage claim with their Homeowners Insurance Provider receive an Insurance Claim Check – also known as a Loss Draft Check – made payable to the customer(s) and the mortgage servicer.  


Fairway branch offices may be able to endorse the check for customers if:

  • Check is made payable to either Fairway or ServiceMac
  • Branch Manager or an Officer of the Corporation is available to sign the check
    • Loan Officers are not authorized to endorse a Loss Draft Check unless they are a branch manager or an officer of the corporation
  • Amount of the total insurance claim is less than or equal to:
    • $40,000.00 for Conventional, FHA and VA loans
    • $20,000.00 for RHS and USDA loans

If the criteria referenced above have been met:

Obtain the information listed below from the customer regarding their insurance claim, and email Servicing911 (servicing911@fairwaymc.com) requesting approval to endorse:

Email Subject Line: “Loss Draft Endorsement Request – Loan Number 0000000000”

  • Confirm customer’s identity by viewing their driver license or other form of State issued identification
  • Date the property damage occurred
  • Cause of the property damage
  • Dollar amount of the total damage claim – not just the initial claim check amount
  • Copy of the Adjustor’s Worksheet – if available
  • Copy of the front of the check

Servicing911 will review the loss draft information provided, along with the status of the customer’s loan and investor guidelines to determine if the branch is able to endorse the insurance claim check.  Servicing911 recognizes this is an urgent request as the customer is presenting the check in person.


Once approval is issued from Servicing911, determine if the check is made payable to Fairway Independent Mortgage Corporation or ServiceMac.  Use the applicable endorsement verbiage.


Endorsement Verbiage for Fairway Interim Loans (if payee information is to the customer and Fairway):


_________________________ (Signature of authorized Fairway employee on this line)    

FAIRWAY INDEPENDENT MORTGAGE CORPORATION

            By: <Print the name of authorized Fairway employee endorsing check>

            Title: <Authorized employee’s title>


Sample:

https://dyzz9obi78pm5.cloudfront.net/app/image/id/604bc48f8e121c5f33587f0b/n/1615578570112.png

FAIRWAY INDEPENDENT MORTGAGE CORPORATION
 By: John Smith

            Title: Fairway Branch Manager



Endorsement Verbiage for Fairway Retained Loans (ServiceMac, if payee information is the customer and ServiceMac):


_________________________ (Signature of authorized Fairway employee on this line)    

FAIRWAY INDEPENDENT MORTGAGE CORPORATION

            By: <Print the name of authorized Fairway employee endorsing check>

            Title: <Print the authorized employee’s title>

Under POA for ServiceMac LLC


Sample:

https://dyzz9obi78pm5.cloudfront.net/app/image/id/604bc48f8e121c5f33587f0b/n/1615578570112.png

FAIRWAY INDEPENDENT MORTGAGE CORPORATION
 By: John Smith

            Title: Fairway Branch Manager

Under POA for ServiceMac LLC


After Endorsing the Check:

Once the check is endorsed, make a copy of:


Please contact the Servicing911 team if you have any questions.