Challenge: A New-York based lender was challenged with manually tracking more than 2,000 insurance policies year-round, sending out cancellation and non-payment of premium notices, force placing insurance and constantly sending out borrower reminders. Since this particular lender also owns an insurance agency, they had to force place insurance with other providers because regulatory pressures made it difficult to use affiliated businesses.
Choosing Lenders Risk MP3 coverage:
Senior management weighed the cost of hiring additional labor to monitor the insurance process with the cost of the annual premiums and ultimately chose MP3 coverage as it provides total mortgage coverage without the potential for human error regarding policy enforcement.
Once the lender chose to procure MP3 coverage, they met with a Lenders Risk representative, reviewed the application process and completed the necessary information.
VP of Lending Client: “The application process is difficult in some aspects with regard to the geographic location of our mortgages but it wasn’t impossible to go through. Once we were done with the internal process, approval came very quickly from Lenders Risk.”
By incorporating MP3 coverage, the lender was able to save money from a labor standpoint with increased efficiencies. They also are no longer putting their portfolio at risk from a potential loan loss due to non-coverage. Since using the product, the client has not experienced any losses.
VP of Lending Client: “Hiring additional part-time or full-time help at $11-$13 per hour could have cost upwards of $12,000 to $24,000.”
VP of Lending Client: Life before our MP3 coverage was always filled with uncertainties as to whether or not we were covered on all real estate holdings. Life after we implemented our MP3 coverage allows us to concentrate on saving money in other areas, and allows us to commit resources to more productive processes.