The Residential 1-4 portfolio typically represents the largest asset class in a non-commercial bank or credit union. Residential 1-4 loan portfolios are now proactively managed using advanced ALCO techniques. To further complicate issues, your portfolio is segmented between GSE conforming, Non-conforming, FHA/VA and, potentially, a Home Equity portfolio, if not managed as a consumer loan. A common methodology to balance interest rate risk is to sell fixed or variable rate loans into the GSEs while retaining servicing rights.
Transferring collateral risk is no simple task with segmented portfolios and assets that are owned by both the lender and the secondary market. Protecting these portfolios involves dove-tailing monolithic insurance policies to provide superior coverage at a reasonable cost. If not done properly, the lender may spend too much while having gaps in portfolio coverage that will not be uncovered until a claim is filed.
Understanding Collateral Risk Transfer for Residential Loans
At Miniter Group, we like to describe our expertise as “We are an Inch wide and a Mile deep.” Miniter Group underwriters have over 200 years of underwriting experience. We know how to dove-tail multiple commercial insurance products to deliver the best coverage at the best price. Our track record proves this as we insure over 700 lenders (including banks, credit unions, finance companies, and other mortgage servicers) with well over 5,500 individual insurance policies. That is eight policies issued for every lender.
Let Miniter help you design a cost-effective collateral risk transfer program for your Residential 1-4 portfolios using some of the best expertise in the industry. When you choose Miniter as your partner, we offer you the following options:
We want to help you protect your mortgage loan portfolio without sacrificing your relationship with your clients. Reach out to us to learn more about our residential loan services by calling us at 781-982-3100 or filling out our contact form.