Financial Services has an insurance product for almost all aspects of consumer lending, be it autos, homes, boats, manufactured homes, motorcycles, or RVs. We also provide collateral tracking services through Ameritrac to lenders, lessors, and mortgage servicers. What are those other products? They are:
- Forced Order Collateral Protection (CPI) - Automobiles
- Forced Order Fire, Mortgage Fire, Dwelling Fire
- Forced Order Flood
- Credit Insurance
- Blanket VSI (Blanket LSI) - Automobiles
- Point-of-Purchase Mortgage Hazard Insurance
- Blanket Fire - Mortgage
- Loan and Lease Insurance Tracking Services
- Sales Regions and Contacts
Forced Order Collateral Protection (CPI) - Automobiles
Like Blanket VSI, this program protects lenders against uninsured collateral losses, but also can provide some borrower loss recovery benefits without the necessity of repossession. Coverages are similar to VSI. Typically, all loans in a given portfolio are tracked for primary insurance. Those loans, or leases, identified as not having insurance, having inadequate insurance, or insurance with an incorrect loss payee, are sent reminders or insurance deficiency notices. If the borrower fails to respond after a series of such notices, an individual certificate is issued, with premium added to the underlying loan balance.
Forced Order Fire, Mortgage Fire, Dwelling Fire
As Blanket Fire is to Blanket VSI, Forced Order Fire is to CPI. The lender is protected against collateral loss in the event the borrower has an insured physical damage event, and failed to provide acceptable homeowners or dwelling insurance. Certificates are issued once the property has been identified as being uninsured through some loan tracking process. Premium is usually added to the borrower's loan balance or can be paid through the customer's escrow account.
Forced Order Flood
Current federal legislation requires that a flood zone determination be made for all new mortgage loans. If a property is within a flood zone, adequate insurance must be secured by the borrower. If the borrower fails to do so, the lender must force place a flood policy to protect their financial interests. This program can also be easily combined with a force placed hazard program.
Credit Insurance
This term is generally applied to any life; accident and health; and/or disability product that protects the borrower or borrower's survivor against loss due to death, or the inability to repay loans due to an accident or disability. Credit Insurance is almost always purchased at the time of loan origination and the premiums are typically financed by the particular lender and are included in the borrower's monthly payment. The amount of coverage is determined by the amount financed.
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Blanket VSI (Blanket LSI) - Automobiles
Protects the lender's interest against uninsured physical damage loss events. Protection includes all risk physical damage perils, and may include optional coverages such as non-filing errors and omissions, customer skip and collateral confiscation, lender repossession expenses, mechanic's lien repayment, and repossessed property protection. All loans in the portfolio are protected regardless of underlying private coverage.
Point-of-Purchase Mortgage Hazard Insurance
This policy provides personal lines homeowners or dwelling coverages. It is designed to be sold by lenders at mortgage origination. It is offered when the customer is unable to provide an ordinary physical damage policy protecting the lender's interest, at mortgage closing.
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Blanket Fire - Mortgage
Similar in nature to Blanket VSI, this product is designed to protect a lender's mortgage portfolio for limited or stated perils. It is typically provided to Mortgagors to cover REJ's (Real Estate in Judgment) and REO's (Real Estate Owned). Premium is charged based upon the monthly outstanding loan balances by mortgage type (first, second, or home equity).
Loan and Lease Insurance Tracking Services
Through Ameritrac, we can provide insurance tracking services to lenders and mortgage servicers. This service can be implemented on a stand-alone basis by the lender for strictly information purposes, or the information provided by the systems can be used in the issuance of either auto or hazard force placed certificates. When a lender signs up with Ameritrac all loan information and corresponding insurance documentation is captured electronically Ameritrac. Ameritrac also provides customer service to help resolve insurance coverage issues on behalf of the lender.
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( Note: Not all products available in all states. )
( Note: Not all products available in all states. )
Last Updated on March 30, 2005
