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MEMO #1080 The Importance of Photo Documentation 05-04-2004
To: All SPI Contractors
From: Robert Klein
MEMO 1080 The Importance of Photo Documentation
Please see the following e-mail I received from one of our clients outlining their expectations from us on photo documentation.
Robert,
I just want to reiterate the importance on every order that is completed that we receive complete and accurate before and after photos. We use this information to justify all work completed on a property. This allows our company to claim the cost of the work performed on our part A and B conveyance process.
As you are aware, any expenses claimed from the investor that are not documented can cause the FHA auditors to flag the file and extrapolate the non compliance for the entire portfolio.
If the pictures aren't provided or do not clearly document every aspect of the completed work or are vague in the nature of the work completed, it opens our company to liability and unneeded exposure to increased losses or penalties. Photo evidence is critical in justifying all expenses and losses in managing defaulted mortgages.
Be advised that we will not claim or pay your company for work completed if the above conditions are not fully met.
We value our relationship and appreciate your efforts to keep us in full compliance with the investor guidelines.
Sincerely,
Based on the above, please let this memo serve to restate the importance of providing complete and accurate before and after photos of all work performed. It is imperative that photo evidence be provided to support all expenses and losses. Photo evidence assures our clients that all work has been completed as instructed; is required to justify payment of invoices; and can be used in the event of a dispute to prove that work was completed. If photo documentation is not provided or does not sufficiently document the necessity of work performed, then our clients, Safeguard, and you are exposed to additional liability.
We are receiving a number of reimbursement requests from clients, claiming insufficient photos to support the work completed. This is costing Safeguard (and you) thousands of dollars.
It is the contractors' responsibility and obligation to provide documentation that proves invoiced work was performed. Safeguard will continue to deny payment and to hold the contractor responsible for any work performed without the proper before and after photo documentation.
We all appreciate your continuing cooperation. It's only with your help that we can continue to safeguard our clients' interests.
If you have any questions about providing all required photo documentation, please reference MEMO #1037: Photo Policy - 08/07/03, or contact Customer Service or your Regional Coordinator.
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