HECMs and Hurricanes
As Floridians and East Coast residents brace for Hurricane Matthew, the strongest system to threaten the United States since Katrina in 2005, we asked two knowledgeable servicers for advice that you can share with your clients if their homes are damaged.
Ryan LaRose, President and COO of Lansing, MI-based Celink, and Co-Chairman of NRMLA’s Servicing Committee, and Leslie Flynne, COO of Reverse Mortgage Servicing at Reverse Mortgage Solutions, offer these tips:
- Contact your insurance company right away to file a claim if damage has occurred to your home;
- After that, contact your loan servicer to inform them if damage has occurred to your home; and
- Depending on the severity of the damage, and the amount of funds issued by your insurance company, it may be necessary for the servicer to hold the insurance funds, monitor the progress of the repairs, and disburse out to the contractor (similar to a repair set aside) after an inspection has been completed on the home.
- If you had damage and need to move out of your property, update your contact information with your servicer and provide an alternate contact in the event that your servicer has difficulty reaching you.
- If you had no damage, but you are going to be away from your home for a pro-longed period of time, let your servicer know.