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Tips for Negotiating Long-Term Vendor Contracts for Lenders

Submitted by Bill Jones on July 31, 2018

Some vendors in the world of lending ask their customers to sign lengthy multi-year agreements and some also make it difficult to leave the agreement prior to the terms expiring. Read on for more information about negotiating contracts with vendors.

 

First, you need to read the contract and pay special attention to the following:

  • Length of the term
  • Terms of exiting the contract early
  • Automatic renewals
  • Conditions for both parties
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Do you have the Right Lender-placed Hazard and Flood Program?

Submitted by Bill Jones on July 18, 2018

To properly answer that question, you have to look at the entire program and the many different parts that are often overlooked. There are four different coverage sections that you should be evaluating:

  • Lender-placed Hazard
  • Lender-placed Flood
  • Coverage for REO property
  • Liability insurance for REO property
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Lenders must Ensure VSI Insurance Compliance

Submitted by Brian Barnett on June 29, 2018

In most states,  VSI insurance can be directly disclosed and fully passed on to your borrower without affecting your Annual Percentage Rate (APR). Golden Eagle's VSI policy covers your financial institution for damage losses that you sustain from uninsured repossessions or skip losses where your borrower and/or collateral cannot be located (along with other coverages).  By having the coverage, you are also relieved of the responsibility of tracking insurance documents on the covered collateral. 

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Tap Into Higher LTV’s on HELOC's with Equity Default Protection

Submitted by Tod Hastings on June 18, 2018

It’s no secret that interest rates are on the rise. If your customers haven’t taken advantage of refinancing their first mortgage loans by now, it may be too late for them to make it a cost-effective option.The market for refinancing a first mortgage to pay off debt, finance home improvements, or simply do a cash-out refi is just not as attractive as it was when rates were historically low. This creates an opportunity for junior lien mortgages, typically called HELOCs or HELOANs, to be in higher demand.

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What does Blanket Mortgage Protection for Lenders Cover?

Submitted by Bill Jones on May 30, 2018

Many lenders who still manually track mortgage insurance may have heard of a solution to tracking mortgage collateral insurance called Blanket Mortgage Insurance.  But what does blanket mortgage protection typically cover? The master policy in many cases is identical to what would be issued in the typical tracking and lender-placed scenario. The same limits can be obtained, and all the same coverages and exclusions still apply. Some companies offer other versions of blanket mortgage, so it is important to clarify exactly what’s covered and what’s not. Blanket Mortgage can cover all real estate in your portfolios and can be separated out by portfolio.

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Lenders Need Control Over Gap Waivers they Finance Through Auto Dealers

Submitted by Bill Jones on May 16, 2018

This can be a touchy subject because of the close relationship that many lenders have with automobile dealers. However, that does not change the fact that there are serious concerns that should be taken into account by lenders when they finance Gap Waiver. Most lenders don't realize that Gap Waivers state clearly that they are addendums to your loan agreement and affect the way your loan performs when there is a total loss. When you finance a Gap Waiver, did you know that you, the lender, are agreeing to waive much or all of the remaining balance when your borrower’s primary auto policy doesn’t pay off the loan?

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Are you still wasting time tracking insurance?

Submitted by Bill Jones on April 30, 2018

Is it time to take another look at your consumer auto loan collateral protection and insurance tracking? More and more lenders have begun to realize the shortcomings and administrative hassles common with Collateral Protection Insurance (CPI) programs using outsourced tracking.


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Commercial Real Estate (CRE) Appraisal Requirements Raised to $500,000

Submitted by Tod Hastings on April 19, 2018

Commercial Real Estate (CRE) Appraisal Requirements Raised to $500,000—A Welcomed Relief for Community Banks

Since 1994, commercial real estate loans over $250,000 needed a full appraisal that conformed with laborious Title XI requirements.  As of April 2, 2018, The Federal Reserve, FDIC and OCC released a new rule raising the full appraisal exemption for Banks on loans at or below $500,000.

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Golden Eagle to offer Streamlined Mortgage Settlement Solutions 

Submitted by Golden Eagle Insurance, Inc on March 20, 2018

Golden Eagle Insurance is pleased to introduce a comprehensive resource for the financial lending industry by providing bundled lending settlement products and services featuring a state of the art user-friendly online system that streamlines processes, saves time and cuts costs.

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As car values struggle, VSI and Gap in demand 

Submitted by Golden Eagle Insurance, Inc on February 21, 2018

VSI and Gap, or Guaranteed Asset Protection, products are in demand as used car values continue to struggle.

The article, Worthless Auto Trade-Ins Signal Riskier Loansby Bloomberg news, reiterates what we all have seen the last few years:  vehicle depreciation is taking a heavy toll. Lender risk is on the rise as longer terms, and lower trade-in values weigh down the LTV in the beginning stages of a loan. These factors causing massive depreciation of a newer financed vehicle deteriorates any chances of being in a good position on LTV during the mid-stages of a loan.

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