Borrower-Centric Mortgage Insurance Tracking
Free tracking has been used by mortgage insurance trackers for decades. Obviously the cost of opening mail, processing the enclosed insurance document and mailing out notification letters is not free. The cost to perform tracking service is built into the insurance commission received by the tracker from the associated lender-placed insurance policy. This business process is still in effect at many trackers, but a new value proposition has been introduced by Miniter Group which is far superior. It is called Borrower-CentricSM Insurance Tracking.
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Compliance for Mortgage Insurance Tracking
The CFPB and regulators have begun to implement changes to lender-placed insurance to ensure a better financial experience for the borrower. During the CFPB’s RESPA re-write in 2012, CFPB commentary mentions that lenders cannot treat borrowers differently. If a tracker provides free insurance tracking, which is actually paid for by commissions from insurance placements on 1-2% of borrowers in a portfolio, then the 1-2% of borrowers that have insurance force-placed will pay for the tracking costs for the other 99% of borrowers.
The CFPB and regulators frown on this practice. If we accept the premise that lenders can no longer have free insurance tracking, then how do trackers get paid for insurance tracking? If the lender must pay for insurance tracking, what is the trade-off between low cost and service to borrowers? Do lenders now have to track in-house to protect their borrowers’ experience? If so, will this increase loan servicing cost?
Miniter’s Borrower-CentricSM insurance tracking is a compliant approach to lender-placed insurance tracking that reduces non-interest expense while providing the best borrower experience in the industry. Our Borrower-CentricSM insurance tracking service is currently implemented at over 85 lenders. Borrower-CentricSM means that we help you borrower maintain their insurance.
We only use force-placed insurance as a last resort. We compiled data from all lenders who implemented our Borrower-CentricSM Approach in 2014. The graph to left shows how force-placed insurance premium was reduced by more than half over the period from 2014-16.
Borrower-Centric® Minimizes Borrower Interaction
Our Borrower-Centric approach works with your borrowers’ brokers and insurance companies prior to force-placed insurance notification letters being sent. Solving insurance issues without involving your borrower ultimately leads to a better borrower experience with your institution.
Using the same 2014 implementation data from above, the bar chart to the right shows how contact with your borrower is reduced by 58 percent from levels prior to implementing Borrower Centric insurance tracking.
Borrower-Centric® Insurance Tracking
Our lender-placed insurance tracking is optimized for the small to mid-size loan servicer who provides personalized service to their borrowers. Miniter’s Borrower-Centric insurance tracking is designed to enable our agents to help your borrowers maintain their own insurance.
In 2016 we audited our lender’s complaint logs and found that there was less than 1 complaint per 1,000 loans tracked. Ask any of our lenders about our Borrower-Centric approach to insurance tracking. You will like what you see here!
About Miniter Group
-Miniter Group provides risk transfer solutions and lienholder/mortgage force-placed insurance tracking services for small to mid-size lenders. We understand that loan servicing departments, desiring to keep insurance tracking in house, are now burdened with the added expense associated with compliance to these new regulations. For smaller lenders considering outsourcing their insurance tracking, the Miniter Borrower Centric Approach to outsource insurance tracking has completely changed the traditional value proposition associated with small lender force-placed insurance tracking. Our tracking systems are continually updated to comply with all new force-placed insurance requirements including those defined in Regulation X (RESPA). Whether you wish to keep your insurance tracking in-house or would like to investigate our Borrower-Centric outsource approach, we have compliant systems to meet your needs. We invite you to call us at 1-800-MINITER or visit us on the web at www.miniter.com.