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Alternative Credit Scoring Can Help Lenders Make More Mortgage Loans

Submitted by Tod Hastings on October 15, 2018

Are FICO scores overrated when assessing one’s creditworthiness?  Probably not, but what about the 67 million people who don’t qualify for mortgage loans or even credit cards because of a lack of traditional credit?


While using alternative credit scoring is not a substitute for bad credit, it can be a vehicle to offer more affordable loans than sub-prime or Alt A programs offer.  

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How Lenders can use HELOC's to Improve Customer Relationships

Submitted by Golden Eagle Insurance, Inc on September 30, 2018

Home equity in the United States has reached an all-time high. According to NRMLA, housing wealth grew to $6.2 trillion in 2017. However, some homeowners are more reluctant than ever to tap into their wealth as the costs of financing a HELOC have risen to 5.83% in 2018. Plus, refinancing can be harder than ever before and homeowners are wary of housing troubles caused by the crisis in the early 2000s. But, a recent study on HELOC’s by Transunion predicts that, “The number of consumers opening HELOCs may double during the next five years.” So, even though rates are up and homeowners may be wary, lenders can use home equity loans to deepen customer relationships. Here's how.

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Three Times as Many People in need of Flood Insurance than Current FEMA Maps Show

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

NFIP (FEMA) Flood Insurance Vs. Private Flood Insurance

Flood insurance is required for many properties but choosing a policy can prove difficult. From the broadest perspective, there are two primary choices for flood insurance coverage: FEMA flood insurance or a privately funded policy.

Demand Is Outpacing NFIP’s Coverage

According to a study conducted by researchers from the U.S. Environmental Protection Agency, Nature Conservancy, and the University of Bristol published in the journal Environmental Research Letters, nearly 41 million Americans already live in 100-year floodplains.

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VSI and Excludability From Finance Charge

Submitted by Bill Jones on August 31, 2018

VSI or Single Interest Insurance is a customer-centric, efficient, compliant way for lenders to insure their entire consumer loan portfolio for a small one-time fee on each new loan. There are many advantages of the blanket product as compared to other options such as tracking insurance in-house or outsourcing tracking. VSI allows you to eliminate all insurance tracking and yet still cover all of your collateral without the needless hassles between you, loan officers, borrowers, and insurance companies.

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How Lenders are more Efficient with Blanket 360 Portfolio Insurance

Submitted by Bill Jones on August 16, 2018

How often do products come along that can significantly change your operation in a positive way? Lenders from all across the country face similar challenges when it comes to balancing budgets, managing workloads, and staffing levels while growing at the same time. Growth is great but means more files, more data, and more work for everyone.

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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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