1. Reallocate your internal resources.
2017 should be about making your life easier. At Lenders Risk, we can simplify and streamline your processes through our Lenders Single Interest (LSI) product, which eliminates the need for tracking of member insurance coverage, thus saving time and money for your organization. Our LSI coverage streamlines the process so the only action required by the credit union is to complete a monthly report of the number of loans of each collateral type – or the total of the outstanding loan balances as of month end, and pay the premium by check or ACH.
Entering this information is easy thanks to our proprietary online LSI Platform. Our online portal allows members to enter claims 24/7 and even to upload stored claim-supporting documents such as the note, security agreement, title, copy, etc. A user-friendly “wizard” guides the user through the claim reporting process. (Watch a demo here.)
2. Don’t accept the status quo.
You may work with an insurance agent you like, and you may not want to rock the boat. But prices change over time, so it’s important to have a vendor who shops around. It may be possible to have a better insurance policy with higher limits for a lower price, but you’ll never know if you don’t let anyone go out to market for you. Curious about your options? Give us a call at 1.888.600.4436.
3. Avoid the hazards of force-placed insurance.
We’ve warned you before about the potential danger of issuing lender-placed or force-placed insurance at inappropriately high rates, often up to 10 times more than traditional homeowners insurance. In 2016, several companies faced class action suits for doing this. Lenders Risk can RFP your Lender Placed and REO rates to make sure you have the best rates available to your consumers and that your REO insurance and tracking costs are not being subsidized by your borrowers. We can also provide blanket mortgage impairment which eliminates the need to track and force-place insurance within your secured real estate portfolio.
It’s also important to note that, typically, mid-sized banks and credit unions don’t have a risk manager on their staff. That’s where we come in. Lenders Risk can be a free resource with Risk Management experience to review all your insurance products and coverages.
Interested in learning more about our LSI product and REO Product? Contact us.