• There are no suggestions because the search field is empty.
banner1.jpg

Blog

Bill Jones

Recent Posts

Could Your CPI Bring You Legal and Compliance Troubles?

Submitted by Bill Jones on June 28, 2019

Compliance for your collateral protection programsMany lenders using Collateral Protection Insurance or a CPI / force-placed type of product for their consumer loan portfolios are unaware of the potential ramifications that they may face if their programs are not administered correctly by the provider. I say “their” programs intentionally because to borrowers the CPI or Collateral Protection Insurance product is your program and to regulators and class action attorneys CPI was your choice to insure your loans - (and guess who has the deepest pockets)?

Read More

Worried about Rising Collateral Protection Premiums?

Submitted by Bill Jones on April 30, 2019

As new vehicle sales prices continue to rise, many lenders are feeling the pain in the way collateral protection premiums are calculated. Without any action at all on the part of the insurance company or the lender, your borrowers are paying more and more for coverage. The reason? Collateral Protection premiums are based on a percentage of the loan balance. As vehicle prices increase, loan balances are at all-time highs, and in turn, force-placed insurance premiums are higher than ever.

Read More

Factors that Determine Rates on Portfolio Protection Insurance

Submitted by Bill Jones on February 28, 2019

Trust and Relationship

I placed this first intentionally because it is the most important by far. Customers, borrowers, and members want a service provider that is trustworthy and see the bigger picture of a long-term relationship. They will use your products because of the great service you provide, and the value you bring to them as a trusted financial advisor. Good agents and insurance companies operate under the same principles.

Read More

Frequency and Size of Auto VSI and GAP Claims Remain High

Submitted by Bill Jones on January 31, 2019

Insurance rates in every sector have risen substantially in recent years, outpacing inflation by a good margin.  Here’s a look at some of the stats:

  • Health Insurance costs have gone up by over 20% in the last 10 years

  • Auto Insurance rates have gone up by more than 30% in the last 10 years

  • Homeowner Insurance premiums have risen over 40% in the last 10 years

Natural disasters, home prices, and the increased cost of construction have affected homeowner insurance pricing the most.  Health insurance premiums have risen due to many factors. Why have auto-related premiums gone up so much? Here are the top 5 reasons why auto insurance rates are going up:

Read More

Record High Auto Payments Put Pressure on Lender Risk Protection Products

Submitted by Bill Jones on November 29, 2018

As reported in USA Today, this month used car payments hit a record $400 per month and used car vehicle values jumped over $20,000 for the first time. Higher demand for used vehicles, along with continued inflation in new car pricing and higher interest rates, have pushed payments to their highest level on record in the used car market. Both factors combined have also increased pressure on loan terms, as they now average 66.9 months according to Edmunds, also the highest ever.

Read More

The Truth about Reg Z and VSI or Blanket Single Interest

Submitted by Bill Jones on November 16, 2018

Regulation Z or the Truth in Lending Act (TILA) provides a specific carve-out exemption and special treatment for the Blanket Single Interest (or VSI as its commonly called) product for various reasons. Predominantly we believe the regulators knew that a great majority of US banks already use the coverage and it is a growing product in credit unions and other lending sectors, which has provided a great option to protect the loan portfolios of lenders efficiently while keeping the cost to customers to a minimum.

Read More

Contact Us

Subscribe to Email Updates