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.
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?
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.
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.
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.
Financial institutions have always wrestled with one main issue when it comes to tracking insurance on their loan collateral: staying properly protected at an affordable price. Since uninsured losses are rare, especially large losses, lenders try to spend as few dollars as possible on staff tasked with keeping track of insurance. However, the risk of a large uninsured loss and the regulations dictating that loans be properly tracked, lead to costs that are much higher than desired, as well as negative customer interactions, all of which could be avoided.