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65 » VISIT US ONLINE @ DSNEWS.COM » VISIT US ONLINE @ DSNEWS.COM 65 NO RESTRICTIONS DOES NOT LICENSE PUBLIC ADJUSTERS. PUBLIC ADJUSTERS ARE CALLED "INSURANCE CONSULTANTS." NO LICENSING OF PUBLIC ADJUSTERS; HOWEVER, THERE ARE "CLAIMANT REPS" WHICH DO CARRY RESTRICTIONS AS NOTED ABOVE. PROPOSED LEGISLATION ON THIS ISSUE. DISCLOSURES REQUIRED AND/OR OTHER RESTRICTIONS PROHIBITED a claim and performing the restoration or repair work, twelve (12) have detailed disclosure laws and/or other nuanced restrictions, and still others have similar restrictions on other professionals such as "insurance consultants" who mirror activities of public adjusters. •ese laws create a potential legal disaster for the P & P Companies, and by extension the mortgage servicers, who are tasked with bringing these hazard claims. With amplified inquiry into the practices and procedures of mortgage servicers, such mortgage servicers operate at a risk by continuing to rely on the traditional model of using P&P Companies to adjust hazard claims and make repairs on foreclosed properties. Why take such a chance? Instead, mortgage servicers can turn to licensed public adjusters who specialize in representing the interests of mortgage servicers. •e public adjusters may be hired by either the mortgage servicer directly or the P&P Company who will be doing the repair and restoration work on the distressed property. A duly licensed public adjusting company that specializes only in presenting and negotiating hazard claims for mortgagees doesn't have a financial interest in the repair or restoration work performed on the property, and would not violate state laws by doing the adjusting work. In addition, from a financial recovery standpoint, public adjusters are better situated to maximize the recovery to the client. Public adjusters have specialized expertise in this arena, and sophisticated technology to assess, document and quantify damage. In the dawn of the new day, to avoid another catastrophe in the industry, mortgage servicers need to be especially vigilant about complying with all laws and regulations. Using licensed public adjusters to adjust claims is an easy way to begin. Written by Holly K. Soffer, Esq. counsel for MetroCorp Claims. For more information about public adjusting with MetroCorp, or to obtain a free copy of MetroCorp's detailed chart displaying a state by state guide to the conflict issue, please contact Gene G. Veno, Sr. Vice President MetroCorp Claims 202-422-5092, gveno@metropa.com. www.metrocorp.com i U. S. Department of Housing and Urban Development Mortgagee Letter 2016-2 ii National Association of Insurance Commissioners Public Adjuster Model Act , 2005 TX OK KS AR LA MS AL GA SC TN NC VA MD PA OH IN IL MO NE SD ND MN IA WI MI NY CT MA VT NH ME NJ DE RI WV KY FL WASHINGTON D.C.