Good News About Testing
We applaud Congressman Joe Courtney in his continued efforts to help the victims of the crumbling foundations crisis.
We read with interest about the important new federally funded testing program being developed at UCONN. The aim of this program is to develop a low-cost, rapid, trustworthy, and efficient way to test for the existence of pyrrhotite in concrete aggregate. CFSIC has long adopted the position that calls for universal foundation testing only work when those calling for the testing are doing so without any conflicts of interest. UCONN is an educational institution. It does and will hold itself to high standards of scientific inquiry in its quest to get at the truth.
We have offered to collaborate with UCONN by providing them the same kind of information we provided the GAO in the furtherance of their work. The key to raising more funds to deal with this crisis is more statistical information. CFSIC is an insurance company. Insurance companies thrive on predictive modeling…the ability to use data to predict, with truthfulness, what will happen in the future.
In CFSIC’s case, it may be the UCONN data that will enable CFSIC’s actuaries to model future cash needs. This is something that CFSIC does not possess now, and it is vital to raising more funds. What CFSIC has is data on the current victims of the crisis…those who have applied…those unfortunate citizens who can stand in their basements and see daylight penetrating through the cracks.
What CFSIC needs is data about precisely where the crisis is apt to be next. We’ve already got a good idea of where that is…but, again, the only way to raise more funds at the state and federal levels is more actuarial evidence that can be used to predict the future. CFSIC deals with the present. In a perfect world, all parties would be sharing data to deal with the future.
If anyone at UCONN is interested in a collaboration where we share, without compromising claimant confidentiality, thousands of data points possessed by CFSIC, we are prepared to assist, to augment what we expect will be a great effort by UCONN to get at the truth.
We are going to repeat, again, that CFSIC never reveals a claimant’s name or address, or gives anyone without a precise need to know access to personal claimant information contained in an application for assistance.
We are aware that there is sudden interest in learning a great deal more about claimants, particularly if those claimants exist outside the preconceived geographic boundaries of the crisis. If you are a claimant and you reveal who you are, that is your business.
Under the stewardship of the current Superintendent, CFSIC will never reveal personal claimant information to anyone, because we have been entrusted with that personal data. We have no interest in helping to identify a claimant who is suffering; whose net worth has disappeared overnight; who may be going through emotional and financial turmoil. Victims have been victimized enough, and we should respect their privacy.
If you are a claimant with CFSIC, for as long as the current Superintendent is in charge of day-to-day management responsibilities, you will be able to trust that the application you provided us, and which you signed under penalty of law, will remain a confidential document.
Where We Are
Here are some facts and figures:
– With the home of a victim of the crisis in Tolland, CFSIC hit the number 230 completed foundations on Friday. We expect to be at 250 foundations shortly.
– CFSIC’s average replacement allowable costs are at $155,096. CFSIC’s cap remains the same at $175,000.
– CFSIC’s audited financials for the period ending 6/30/20 will be published a week from today, once it is reviewed by the Trustee of CFAT. It is a clean audit opinion, with no exceptions as to disbursements, the conduct of management, and the accounting for all revenues.
– The Superintendent’s office has stopped issuing Participation Agreements, because we reached people in date and time-stamp order who have been waiting in line since February 26, 2020, and we are out of funds as a result. We won’t get to people currently in line on February 27, 2020 until we get more funds, which will be after July 1, 2021. The Superintendent’s office continues to countersign PAs, enabling construction to be scheduled and construction deposits to be made.
– CFSIC hit an important milestone this past week…with more than $50 million in paid claims registered on our books…to be precise, $50,133,513.11.
– We believe that with the next round of funding, we will be able to start the process of remediating 170 active Severity Class 2 claimants who have been anxiously and patiently awaiting assistance.
More About Pending Claim Status…
Transferring Your Claim
All CFSIC claimants (not just active claimants) will be able to transfer their existing inactive or Pending claims to a buyer of their home effective July 13, 2020, retroactive to June 1, 2020. Today, we are publishing on this site the following:
– red-marked changes to CFSIC’s Underwriting and Claims Management Guidelines;
– a new subsection, subsection 20, in the “For Homeowners” section of this site, which will detail how the process will work, inclusive of Q&A;
– a templated Claim Transfer Agreement governing the transfer of a claim in the “For Homeowners” section;
– a new subsection, subsection 11, in the “For Contractors” section of this site, providing claim transfer information for contractors.
What follows is an expanded (expanded from last week) Q&A about this important change.
Question: I’m a Type 1, severity Class 2, inactive claimant. If I sell my home and transfer my claim to the buyer, does that change the status of my claim?
Answer: No. The buyer gets the exact status you had at the moment of transfer.
Question: I’m in line for a Participation Agreement and have been in line for a while. I’ve been told that I may be in the next round of funding at some point after July 1, 2020, but I still plan to sell my house and give up my claim. Does my exact place in line for a Participation Agreement get transferred to the buyer?
Answer: Yes, if the buyer agrees to all terms and conditions of the Claim Transfer Agreement.
Question: Where can I find a sample of the Claim Transfer Agreement on this site?
Question: I’m a Pending claimant, and I’m aware that, given current anticipated projected funding, I may never get my claim paid unless CFSIC gets more money. If I transfer my claim because I sell my home, will the buyer be taking the same risk I am?
Answer: Absolutely. We may never have enough money to address Pending claimants.
Question: Can I transfer my claim without selling my home?
Question: Does this apply to condos? Does it apply to PUDs?
Answer: No for condos. (Remember that condo unit owners are technically not our claimants… associations are our claimants, because it is the association that owns the foundation.) It applies to PUDs.
Question: I’m a Type 2 claimant. Does it apply to my claim?
Question: Once I transfer my Type 1 claim to the buyer, can he or she re-sell the home and transfer the claim again?
Answer: No. The transfer of a claim can occur only once…from one Original Claimant to one Transfer Claimant. It can never be transferred again by the Transfer Claimant.
Question: Will I be able to sell my home first and then transfer the claim at some point after that?
Answer: No. The Claim Transfer Agreement date can only be the same date as the date of the sale of the home or a date prior to the sale. It it’s prior to the date of sale, and for some reason the sale does not go through…then the transfer is voided as if it had never occurred.
Question: OK, but I sold my house in the middle of June…how will the retroactive June 1 date affect me?
Answer: As stated above, on and after July 13, 2020, the date of the Claim Transfer Agreement must be the date of the sale of the home or a date prior to the sale. It cannot, however, be a date prior to June 1, 2020. In your example, you would still qualify.
Question: So are you saying that if I sold my home on May 15, 2020, I’m disqualified?
Answer: Yes, that’s what we’re saying…besides, at the date of sale you ceased to be a CFSIC claimant anyway, and the correct thing to do would have been to notify ESIS of your status so that someone else could have access to your funds. We are grandfathering this process back to June 1 as an accommodation only.
Question: Are you still going to stop the Pending application process on June 30 as previously announced?
Answer: Yes. We have already done so.
Question: I’m a Type 1, severity Class 3 active claimant. So if I transfer my claim to the buyer of my home, what am I really doing?
Answer: Looks like you don’t have a Participation Agreement yet, based on the question. So, what you’re doing is transferring almost every right, obligation, and duty you had for your active claim to the buyer of your home, who then agrees to take over those rights, duties, and obligations.
Question: But I’ve got a signed contract and am in line for a Participation Agreement. What happens if the buyer and the contractor can’t agree on the terms of the original contract or, alternatively, the contractor simply backs out of the arrangement?
Answer: The buyer can seek the required two proposals for construction services from CRCOG-approved contractors to substitute for the original contractor, one of which will eventually substitute for the original contract. CFSIC will keep an active claim “active” for a period of 180 days from the date of the Claim Transfer Agreement in order to allow time for this to happen. If it isn’t accomplished by then, the claim is removed from our system, it is no longer active, and the buyer is no longer in line…and must therefore start the process all over again as if the claim had never transferred. If we are not accepting applications at the time that happens, then the buyer may have to wait for years to reapply, or may never get an opportunity.
Question: Who is responsible for contacting ESIS ProClaim to tell them about the sale of a home?
Answer: Only the original homeowner (Original Claimant). ESIS will not accept communications of any kind from real estate agents or from Transfer Claimants (home buyers) regarding a claim transfer.
Question: Okay…what happens then?
Answer: When you provide ESIS ProClaim with your claim number by phone or email and indicate that you want to transfer your claim to the buyer of your home, they will provide you with a Claim Transfer Data Form to complete. You will send it back to them completed. The Superintendent’s office will then contact you and send you a Claim Transfer Agreement, which will require your signature and that of the buyer, as well as separate witnesses. You will return the fully-executed Claim Transfer Agreement back to the Superintendent’s office. Once this agreement is fully executed and received in the Superintendent’s office, the transfer of the claim can occur, and the permanent records of the claim are changed with regard to who the claimant is.
Question: I’ve already signed a proposal with a contractor. Who is responsible for telling the contractor that I’m selling my home?
Answer: You are. It is not ESIS ProClaim’s responsibility or CFSIC’s responsibility to do this. It also cannot be the real estate agent or the homebuyer. If you want to transfer your claim, you have to do this yourself.
Question: What will CFSIC accept as evidence that the Original Claimant has transferred the home to the Transfer Claimant?
Answer: A copy of the recorded deed.
Question: But I have a CHFA loan agreement that I’ve just entered into. What happens to that?
Answer: You have to address that with CHFA.
Question: My contractor started work on my foundation last week. Can I still transfer my claim?
Answer: No. Once work starts on your foundation, you have to see it through, or you terminate your construction contract. We cannot permit a claim to transfer if even the most preliminary part of the remediation process has begun.
The CHFA Credit Enhancements Program
You should go here to learn more about the CHFA credit enhancements program as it is now constituted. Please note that it currently does not apply to condominiums. CFSIC did not create and is not administering the loan program, and the ESIS claim team cannot advise you in any way about the terms and conditions of any aspect of the program. The link noted in this section will take you to an outline of the program, as well as to a section marked “Frequently Asked Questions.” We also recommend contacting the Homeowner Advocate using the contact information on the Department of Housing website for more assistance.
CFSIC’s 2020 Annual Report
CFSIC’s 2019 Audited Financial
If you have any questions about the operation of the program, ESIS is your best source of information on your claim, and their phone number and email are shown below.
As you work through the information and application process (understanding that we are in suspension for the taking of new applications), here’s how you can get help:
– Call ESIS (the claim adjuster) at: 844-763-1207
– Email ESIS at: email@example.com
– Email CFSIC at: firstname.lastname@example.org