Vendor Single Interest Insurance (VSI)

A proven collateral risk transfer technique used by vehicle lenders to reduce net charge-off up to 18%.  Program involves charging a small premium at loan origination, which can be excluded from the APR in most states.  This premium is used to reimburse the lender for physical damage on repossessed vehicles or for skips that cannot be recovered.

Miniter group delivers our VSI program with a unique approach that enables rate stability to the lender in both good and bad economic cycles.  Using this technique, one of our lenders has maintained the same low VSI rate since 2003 and consistently achieves annual reductions in net charge-offs from 10% to 18%. 
Banker who uses commercial mortgage loan insurance
Feature Description Benefit
All Risk Physical Damage Collateral Damage Covered to $100,000 Repossessed vehicle values will be MAINTAINED to ACV or loan balance
Skip Coverage All perils covered  unless specifically excluded.  This is much broader coverage than named peril coverage. ELIMINATES full balance charge-offs associated with Skips
Mechanics Liens & Storage Large commercial collateral can be insured within the program rather than requiring individual applications and underwriting. REDUCES expenses associated with liquidation of collateral
Instrument Non-Filing Allows lender to customize risk assumption. ELIMINATES full balance charge-offs associated with title errors
Repossession Expense Reimbursement Lender has the option to repair the property to replacement cost limits or utilize an ACV settlement option. LOWERS overall liquidation expense

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