Last month, Santander Consumer USA reached a settlement with the Consumer Financial Protection Bureau (CFPB) over a GAP product that all auto lenders should be aware of. For background, you should know that the Consumer Financial Protection Bureau (CFPB) first took steps to regulate GAP coverage in 2012. Furthermore, the Dodd-Frank Act gave the CFPB supervisory authority over “larger participants” of certain markets for financial products or services, as the CFPB defines by rule.
With the rise of the internet and the wave of online banking that followed, cybersecurity is becoming a hot-button topic. Because most information and financial assets are accessible from online avenues now—or in the case of cryptocurrencies, are entirely digital in nature—practicing good cyber hygiene is essential in keeping information from online hackers, thieves, and scammers.
Yes: October was officially Cybersecurity Month, but this is a year round issue, so it's always a good time to remind employees and consumers to be careful with their data and systems. Let’s dive in to learn more about cybersecurity, understand some of the statistics and terms associated with it, and how much it can cost an agency or institution, should they fall prey.
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.
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.
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.
The article, Worthless Auto Trade-Ins Signal Riskier Loans, by 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.
The Power of GAP: Claim Spotlight
GAP Waiver provides supplemental protection to a borrower’s primary insurance and is designed to help borrowers avoid financial loss in the event of total loss or unrecovered theft. The difference between the loan/lease net payoff amount and the actual cash value (ACV) paid by the primary insurance settlement produces a deficiency balance or “gap.” This remaining loan/lease balance is covered (or waived) with GAP protection. Golden Eagle Insurance provides GAP coverage through only through lenders.
This is an extremely important question to ask. Since you pay premiums to protect your risks, you should be able to count on the protection in the form of fair and timely claim payments when you have a valid claim. What good is the relationship and protection if it doesn’t really protect you and pay when you need it? For products like Blanket Mortgage, Blanket VSI (single interest insurance), Collateral Protection (CPI), Blanket Equipment, Mortgage Impairment, Lender-placed Hazard and Flood, Gap Waiver and many more, a significant amount of money could be at stake.