In the rare circumstance where your collateral property has been damaged, you may find yourself needing to work with Amplify to receive and endorse a loss draft check. In this article, we explain when a loss draft check might be issues and walk you through the steps of endorsing and depositing your stop loss draft check.

Key Takeaways:

• Loss draft checks are checks issued from a borrower’s insurance company.
• They are issued when a claim is processed on behalf of a borrower’s collateral property.
• Amplify requires several pieces of information to validate a loss draft check.

What is a loss draft check?

A loss draft check is a check that is received from the insurance company. These checks are made payable to the borrower and Amplify Credit Union.

Why would a borrower receive a loss draft?

Borrowers receive a loss draft check when the property used as collateral has been damaged and the borrower has filed an insurance claim with their insurance provider.

How does Amplify endorse the check?

If Amplify is in first position, the borrower will endorse the check along with Amplify Credit Union. The check will be deposited to the borrower’s account. If Amplify is not in first position, we will endorse and return the check to the borrower to take to their primary financial institution.

What documents are needed to endorse a loss draft check?

You will need an assortment of documents to properly endorse a loss draft check. These include:

• Government identification for all parties listed on the check.
• Printout of the contractor bid.
• Printout of the Statement of Loss.
• Printout of the Loss Draft form (sent to email via DocuSign by Loan Servicing).
• Image of the loss draft check.

If you have questions about these documents, please contact our team at loanservicing@goamplify.com with any additional questions.

How can I get approval for an endorsement?

Once all the necessary documents have been collected, you will need to send an email to our Loan Servicing department with the necessary information below.

• Name of the member.
• The loan current.
• The claim documents.
• The estimate (on letterhead).
• Investor approval (if necessary).

You can send copies of the above information to our team at loanservicing@goamplify.com.

What happens once approval is given?

Once your request for a loss draft check has been approved, our bankers will complete the necessary steps to process payment.

• The banker will add an Amplify stamp and signature to the back of your check.
• If the check is for less than $40k, you may deposit funds at Amplify or to an external account.
• If the check is for more than $40k, the deposit is issued to unapplied funds.

In the latter scenario, your loan service agent will help you distribute your funds according to investor guidelines.