Miniter’s Mortgage solutions are used by lenders to protect the assets associated with collateralized loans. Our mortgage solutions combine the best features of lender-placed, blanket and impairment policies to protect your portfolio while at the same time protecting the relationship with your borrower.
The borrower’s primary insurance is monitored by the lender using an insurance tracking system. If the insurance tracking system determines that the borrower’s primary insurance is inadequate, then a notice of insurance is issued to protect the collateral.
Certain loan types do not lend themselves to cost-efficient and accurate insurance tracking. These loan types include HELOCs, condominiums, and commercial contents. Loans in these portfolios are typically insured using other mortgage solutions including blanket insurance policies.
Delivering a compliant flood risk management program for your real estate portfolios, especially the portfolios that utilize lender-placed flood insurance, requires constant monitoring of existing and new regulation from FEMA, NFIP, GSE’s, and the Joint Agencies.
Miniter Group has a dedicated compliance department that monitors force-placed flood insurance regulation. When (not if) flood regulation changes, our in-house software development team will make the necessary system changes to ensure that your force place flood insurance program remains compliant.
Our Borrower-Centric Insurance Tracking system works with your borrowers to assist them in maintaining compliance with your loan requirements, as well as NFIP regulation.
- Flood Insurance Compliance Experts
- Escrow Flood Insurance Processing
- Flood Insurance Notifications Guaranteed to be Sent on Schedule
- Private Flood Insurance Processing
- Knowledgeable Flood Insurance Underwriters
For more details about flood insurance tracking, read the article: “Miniter Group’s Complete Guide to Force-Placed Insurance”
Commercial Loan Officers understand that their portfolios offer different challenges for managing collateral risk. Commercial borrowers demand high levels of service and any mistakes with lender placed insurance may cause these borrowers to look to other financial institutions for a better servicing experience.
We have worked with hundreds of commercial loan portfolios and understand the underwriting and operational challenges involved in delivering commercial force placed insurance to these portfolios.
- High Limits for Insuring Large CRE Loans
- Multi-Collateral & Cross Collateral Commercial Loan Tracking
- Commercial Package Policy Insurance Expertise
- P3 Matching Technology to Eliminate False Placements
- Advance CRE Insurance Underwriting
For more details about commercial insurance tracking, read the article: “Miniter Group’s Complete Guide to Force-Placed Insurance.”
In 2012, the NFIP required lenders to escrow insurance flood premiums. Many lenders now escrow for residential 1-4 loans regardless of flood zone status. This change has put an additional servicing cost on both loan operations and force-placed insurance providers.
Miniter Group’s Borrower-CentricSM Insurance Tracking System has workflows that consolidate escrow insurance invoices for loan escrow analysis. Additional escrow services include consolidated invoice generation and ACH bill payment.
Once the escrow invoice has been paid, our Borrower-CentricSM insurance tracking system will await the receipt of the renewal policy insurance DEC page.
- Automated/Electronic escrow invoice collection process
- Consolidation of invoices by loan type, insurance company, and policy expiration date
- Outsource Escrow Payments
- Process Policy DEC Pages.
To learn more about our escrow insurance tracking process, read “Miniter Group’s Complete Guide to Force-Placed Insurance”
Our Borrower-Centric Insurance Tracking system works with your residential 1-4 borrowers to assist them in maintaining compliance with your loan requirements as well as RESPA regulation.
- RESPA Lender-Placed Insurance Compliance Experts
- Escrow Insurance Processing
- Condominium Master and Unit Owners Insurance Tracking
- P3 Matching Technology to Eliminate False Placements
- Advance Hazard Insurance Underwriting
To learn more read the article “Miniter Group’s Complete Guide to Force-Placed Insurance”
Accurately tracking commercial contents is a challenge for lender-placed insurance trackers. Generalized collateral description and ambiguous locations cause issues for evaluating the insurance status of most contents included in a commercial package policy.
Our solution is to provide our lenders with a commercial contents blanket policy that covers contents described as “all business assets” as well as business personal property described in a commercial package insurance policy. This policy is paid for by the lender and is typically more cost-effective than traditional force-placed insurance tracking costs.
- No insurance Tracking on “All Business Assets”
- Annual or monthly premium payment options available
- Per occurrence limits from $100 thousand to $1 million. Higher limits are available.
- Annual premiums are more cost-effective than insurance tracking costs.
To learn more about tracking commercial contents read: “Miniter’s 2019 Complete Guide to Force-Placed Insurance”
The Equity Protection Program (EPP) is a fully insured loan program designed to assist lenders in generating more Home Equity loans. In the event of a home equity default, the lending institution files a claim for the entire loan balance. No foreclosure is required to file a claim. The lender will receive a check for the outstanding loan balance (OLB) withing 30 days of claim submittal.
EPP allows for expanded underwriting guidelines and protects a lender’s home equity portfolio against losses due to borrower default. In addition to the default protection, many lenders use the program to eliminate or reduce loan loss reserve requirements. 100% loan-to-value (LTV) coverage is available.
ELIGIBLE LOAN TYPES:
· Closed-End Seconds
· Home Equity Lines of Credit (HELOC)
· Purchase – Money Seconds (Combo, Piggyback subordinate financing for 1st)
· Home Improvement Loans (Secured & Unsecured)
· Risk transfer on 2nd liens protecting against borrower default for any reason
· Allows lenders to safely broaden CLTV thresholds on home equity loans and purchase money seconds up to 100%
· Increased Home Equity loan volume
· Expanded CLTV thresholds to 133% on secured home improvement loans
· Unsecured Home Improvement Loans available (no title work, CLTV or valuation required)
· No foreclosure ever required
· Balance sheet protection – no losses reported
· Eliminates REO expenses
· Delegated underwriting authority
· One rate & one liability pool for all loan types
· A slight bump in APR covers the cost and there is nothing to disclose to the borrower.
· Eliminates/reduces loan loss reserve requirements
As an alternative to insurance tracking for HELOC and second position loans outside of a special flood hazard area, lenders may insure collateral risk in these portfolios using a blanket mortgage hazard policy.
We recommend using Blanket Mortgage Hazard Policy for HELOC and Second portfolios as the insurance premium paid by the lender are cheaper than the cost for insurance tracking on these portfolios.
Blanket HELOC coverage is cost-effective because there is significantly less insurance risk for these portfolios. Most borrowers have significant equity in these properties and homeowners insurance is kept in place by the borrower to protect their equity. In addition, the lender with the first position mortgage will pay the vast majority of any uninsured claims.
- Eliminates force-placed insurance programs for your Non-SFHA flood residential and commercial portfolios.
- Reduces cost relative to insurance tracking expenses.
- The insurance premium paid by the lender which cannot be passed onto the borrower.
- The policy is sent to the borrower’s primary insurance or lender’s first position insurance coverage.
To learn more about insuring your HELOC and 2nd’s portfolios read:
As an alternative to lender-placed insurance for loans outside of a special flood hazard area, lenders may insure collateral risk in their mortgage portfolios using a blanket mortgage hazard policy. Coverage is available for residential and commercial portfolios.
The lender must evaluate the cost-effectiveness of blanket insurance versus a force-placed insurance program. In our experience, the cost of insurance tracking is far less than the premium required to blanket an entire mortgage portfolio. This is why we don’t recommend blanketing these types of portfolios unless a large deductible can be absorbed by the lender to reduce the annual premium expense.
- Eliminates lender-placed insurance programs for your Non-SFHA flood residential and commercial portfolios.
- High deductible policies available to reduce premium expense for lender.
- The insurance premium paid by the lender cannot be passed onto the borrower.
- The cost must be compared to traditional force-placed insurance programs.
To learn more about Blanket Mortgage Hazard Insurance read: “Miniter Group’s Complete Guide to Mortgage Impairment Insurance.”
Mortgage Impairment Insurance is a critical component of a lender’s collateral risk transfer strategy. Mortgage Impairment not only covers uninsured physical damage, but it provides errors & omissions coverage for loan servicing that is required by secondary markets. This guide will provide the insight that a lender needs to understand mortgage impairment insurance.
This guide provides the lender with a detailed overview of Force-Placed Insurance. Discussions include features & benefits, history of force-placed insurance, the lender-placed insurance policy, issues with the current force-placed insurance business model and the new Borrower-Centric insurance tracking module along with compliance and vendor management. This is a must-read for any lender using force-placed insurance.
Miniter Group’s Borrower-Centric Insurance Tracking Service defines a new business model for the delivery of force-placed insurance. Under our Borrower-Centric methodology, our insurance tracking is aligned with your goal of providing the best possible borrower experience.
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