***Available in AL, FL, GA, NC and SC.
Blanket
Mortgage Hazard Insurance provides coverage for lenders of all sizes who
portfolio their loans and want to eliminate hazard insurance follow up. By using
this single blanket policy the lender no longer needs to track and report
individual properties.
The
borrower’s insurance is verified only at loan closing. Should the borrower’s
insurance lapse, the coverage responds if uninsured physical damage occurs to a
mortgaged property. The loan does not need to be in default or foreclosure.
•
Residential and commercial loans can be covered.
•
The lender’s security interest in the mortgaged properties is covered with a
single annual premium based on portfolio
size. There are no additional charges or rate changes for the remainder of the
policy year with normal portfolio growth. Premium is paid by the lender, not the
borrower.
•
Losses are adjusted up to replacement cost if the lender chooses to repair the
property.
• In some instances, REO properties can be included for an additional quarterly premium. Reporting is required.
Blanket Fire for Equity and Seconds
***Available in AL, FL, GA, NC and SC.
The
Equity Loan / Hazard Insurance Problem:
·
Tracking
of borrowers insurance on Second Mortgages and Equity loans is costly.
·
The
success rate of obtaining proof of borrowers insurance is minimal.
· Securitization
of a loan portfolio and providing proof of insurance is difficult.
·
Lender-placement
and charging for insurance can create customer service problems.
·
High
rate of flat cancellation requests following lender-placement.
The
Coverage
Advantage:
By
providing blanket hazard insurance, Coverage eliminates:
·
The
need to track and lender-place insurance for second mortgage and equity loans.
·
Human
errors in the tracking and lender-placed insurance process.
·
The
borrower’s reluctance in providing evidence of insurance.
·
The
need to verify insurance during securitization.
Who
is eligible for Coverage?
Financial Institutions granting, servicing or administrating second position
loans including second mortgages, third mortgages, second deeds of trust,
non-purchase first mortgages, closed or open- end equity loans.
What
does Coverage
cover?
This Coverage
insures the Lender's financial interest in real property in
the same manner as lender-placed policies without having to report or track
insurance on individual properties.
How does EquiShield work? For one low annual premium, this coverage insures the financial institution's entire portfolio of Second Mortgage and Equity Loans. Once the policy is in effect there are no additional charges through expiration regardless of your portfolio growth.