How will Mortgage Impairment Insurance Benefit Me?

There are several benefits to procuring mortgage impairment blanket insurance. With Lenders Risk’s comprehensive MP-3 coverage, you will be able to do the following:

Protect your entire mortgage portfolio
With MP-3 coverage you will protect your exposure when a borrower fails to meet his or her insurance obligations or in the event of processing errors and omissions.

Streamline processes and improve cost efficiency
Busy work – wouldn’t it be great if we could do away with it? Traditionally, lenders have had to reach out to hundreds or even thousands of borrowers via phone calls or a series of letters to verify they have hazard insurance and the right limits in place for their real estate loans.

With mortgage impairment insurance, you eliminate the hassle of tracking loans or worrying about force placing insurance if a borrower’s insurance lapses. Gone are the days of chasing down false alarms, when the borrower simply forgot to notify the lender of a change in insurance providers. And, since you won’t need to hire the staff to verify and track insurance, you’ll save money. The only work on your end comes when the title of the foreclosed property has passed on to you and you must secure REO coverage within 90 days.

Remain in compliance

It’s no secret that regulatory bodies such as the CFPB are keeping a keen eye on lenders who force place insurance. This increased scrutiny and regulatory attention comes in the face of a flood of allegations against institutions that may have issued lender-placed or force-placed
insurance at inappropriately high rates on behalf of homeowners who failed to maintain
sufficient hazard insurance or whose insurance coverages lapsed. MP-3 eliminates force-placed insurance, taking you off the radar screen of regulatory bodies.

Improve efficiency
Since the paperwork, tracking, phone calls to borrowers and force placing insurance have been eliminated with mortgage impairment blanket insurance, lenders will save time and manpower, increasing their efficiency.

“There is no data dump or implementation needed to switch to our Mortgage Impairment Program. Underwriters assume the risk on the Lender’s existing portfolio from day 1. All we need is an application filled out and an order to bind coverage. The process is seamless and instantaneous.”

Jay Feeley, Sales Director for Lenders Risk.