Mortgage Issues with Property Claims

1) Introduction to the topic
2) Course Details
a) Course Objectives
b) Course Materials
c) Order of Presentation
3) Two main types of clauses
a) Loss Payable clause
b) Standard (Union) Mortgage Clause
4) Difference between the two clauses
5) Step one in resolving a potential mortgagee claim
6) A basic primer: What should you know?
a) Five purposes of a Standard (Union) Mortgage Clause
b) Four main rights of mortgagees under the Standard (Union) Mortgage Clause
7) Recap

1) A basic primer (continued): Three basic legal premises
a) Independent contract
b) When is it triggered?
c) Level of coverage
2) Practical Claims Pointers
3) Who is a mortgagee?
a) Insuring agreement
b) Non-named/misnamed mortgagees
i) Equitable liens
(1) American General Fire & Cas. Co. v. Reese, 853 F.2d 370 (1988)
(2) First National Bank v. Independent Fire Ins. Co., 934 F.2d 73 (1991)
ii) Practical Claims Pointers
4) Recap

1) Assignments
2) Next steps after confirming who is the mortgagee
3) Denial of mortgagor’s claim
a) Basis for denial
b) Claims scenario
4) Mortgagee’s duties
a) Mortgagee not entitled to greater coverage than mortgagor
b) Five main duties of a mortgagee
c) Other general duties of a mortgagee
d) Notification requirements
i) Change in ownership
ii) Change in occupancy
iii) Change in risk
5) Recap

1) Three key things to know
a) What is foreclosure?
b) Three main types of foreclosure
i) Judicial foreclosure
ii) Non-judicial foreclosure
iii) Strict foreclosure
c) Terms to know
i) Right of redemption
ii) Deficiency judgment
2) Judicial foreclosure process – simplified
3) Insurable interest
4) Recap

1) Insurable interest
a) Claims scenario
b) Effects of Foreclosure on mortgagee’s rights and duties
i) If foreclosure action initiated
ii) If loss occurs before the foreclosure sale
iii) If loss occurs after the foreclosure sale
2) Practical Claims Pointers
3) Vacancy
4) Claims scenario
5) Recap

1) Mortgage Fraud/Flipping
2) The Case of the Bankrupt Chicken Farmer
3) Closing Points/Remarks
a) Claims points to remember
b) Legal points to remember
4) Recap