When it comes to collateral protection insurance, lenders have more options than ever before. As lenders find out about the expanding use of Blanket Insurance to protect loan collateral, some questions come to mind. This article will help you sort through what is available and determine what options to look at for your financial institution. Should you continue to track and force place? Should you outsource tracking and have the tracker send letters and force place? Or should you move towards blanket insurance protection and eliminate as much of the tracking and force-placing as possible?
Nearly every lender has been written up during an examination of their collateral protection. This leads lenders to hire a third-party vendor to track and force place their insurance in order to reduce their workload, as well as their compliance risks. While using a third-party vendor can be considered a transfer of risk, lenders often are frustrated with the amount of work that their staff still has.
Compliance Reminder for Lender Placed Hazard and Flood
Regulations can be confusing. There are mountains of inquiries and revisions to the revisions… So, below we've attempted to summarize a response to the top four questions we are asked. Be aware, that fines can be in the thousands of dollars should these regulations not be followed. Read on to get answers to the four most frequently asked questions.
Any lender who serves military customers is familiar with the unique financial challenges and advantages that such customers face as they serve our country. As a young Army infantry platoon leader in Hawaii I witnessed firsthand many of these scenarios:
Many lenders have heard about how blanket portfolio protection can save them time and money, relieve examiner headaches, and make their operations more efficient with a far more customer-centric approach than tracking and force-placed insurance protection. But how is the premium calculated for various blanket protections? Read on to find out what the main considerations are for each type of collateral.
The last several years have been a whirlwind of change in the banking world, and this trend will only intensify as we move into a new decade. Technology advances are occurring at breakneck speed making it virtually impossible to keep up with. Who really heard of the terms “data analytics” or “cybersecurity” 10 years ago? Now they’re at the forefront of business planning. While the challenges to FI’s will be many, insurance on your loans doesn’t need to be.