***Available in AL, FL, GA, NC and SC.
Collateral Protection Plan- The collateral protection policy
covers all types of collateral including automobiles, trucks, motor homes,
mobile homes, boats, travel trailers, motorcycles, farm and heavy equipment,
aircraft, etc. up to $75,000 per item of collateral. You may select deductibles
starting from “$0” to the lending institution, and the borrower's deductible
may be as low as $200. In all cases, refunds are made on a pro-rata basis.
Annual Rate is typically around 12.375%.
| Coverage | All Risk: All risk protection covers the collateral against any direct and accidental loss or damage to the collateral by any external cause, except as specifically excluded in the Master Policy. |
| Endorsements Available for Additional Protection to the Lender Include | Automatic Coverage - Errors and Omissions: Under the errors and omissions endorsement, the Company will generate an individual policy on those borrowers whose collateral has been damaged and there is no evidence of insurance covering your interests. |
| Lien Non-Filing Coverage: In the normal course of business, if you or someone acting on your behalf, unintentionally fail to record or file the lien, the company will pay you for the loss incurred subject to the terms of your Master Policy. | |
| Aircraft Coverage: The company will provide physical damage coverage for aircraft while tied down or hangered. | |
| Confiscation Coverage: The Company will pay for a loss due to confiscation of the vehicle by a public officer or law enforcement agency. | |
| Conversion, Embezzlement and Secretion Coverage (Skip): The Company will reimburse you, subject to the terms of the endorsement, when the borrower skips with, or hides the collateral thus preventing repossession. |
| Coverage in The Event of Repossession: | Repossession Expense - Provides for losses for any independent agent engaged in repossessing the collateral. |
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Mechanics Lien - Provides for losses incurred as a result of a mechanics lien on the vehicle (two options): 1) $300 Repo Expense with $1,000 Mechanics Lien, or 2) $750 Repo Expense with $2,000 Mechanics Lien. These payments will be made after the vehicle is sold and a deficiency still exists.
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| Insufficient
Insurance Coverage - The Company will reimburse you for any deficiency
balance that exists after you have collected from the borrower’s primary
insurance carrier after the vehicle is repossessed. |
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| Worldwide Coverage - This endorsement extends physical damage coverage when a vehicle is located outside the U.S. or overseas. | |
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Waiver of Actual Cash Value - Settlement under this option is the lesser of: 1) Cost of Repairs. 2) Net Loan Balance. This endorsement deletes the Actual Cash Value settlement option of the Master Policy.
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Premium Deficiency Coverage - Provides for reimbursement of the lesser of the following amounts due to your inability to collect the premium from the borrower: 1) The amount of premium earned upon cancellation of the individual policy. 2) The remaining deficiency balances less unearned insurance and finance charges.
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| Repossessed Collateral Coverage - Extends the borrower's CPI Policy for an additional sixty (60) days after repossession while the collateral is being prepared for resale. | |
| One Hundred Twenty (120) Days of Delinquent Payments - Provides for delinquent payments on total losses. |
***Available in AL, FL, GA, NC and SC.
In today’s market it is essential to protect your loan portfolio for uninsured physical damage losses. Vendor’s Single Interest coverage will provides a streamlined alternative to collateral protection programs. The Company offers this program through companies with "A" ratings through A. M. Best.
VSI coverage protects your interest in repossessed vehicles that are subject to uninsured physical damage losses. VSI provides blanket coverage for all of your loans. Coverage included with our VSI product are:
· Physical Damage - protecting your repossessed vehicles from uninsured damage and loss.
· Confiscation & Skip – protects you when your borrower or vehicle can not be located.
· Instrument Non-Filing – protects you for any direct loss due to an unintentional error in the title filing process, which upon default prevents you from taking possession and selling of the vehicle.
Features of the VSI program include limits up to $25,000 per loss (higher limits are available), low deductibles (optional deductibles available), numerous coverage extensions and affordable premiums rated on either a per new loan or monthly outstanding balance basis.
The Company will help you design a program with stable, long term rates for the coverage you require for your specific needs.
***Available in AL, FL, GA, NC and SC.
The Tracking option will allow our system to interface with your mortgage servicing system to allow automatic tracking of loans with uninsured hazard and/or flood coverage. A data extract procedure will communicate information on your portfolio needed to monitor the status of your hazard and flood insurance including:
· Loan number
· Name and mailing address
· Property address and any descriptive codes or information
· Loan date, maturity date, and current balance
· Homeowners and Flood insurance information
· Indicators and elements, such as paid-in-full, REO, investor, escrow status, etc.
Servicing system extracts generally take one of two forms; a complete extract, or a transactional extract. The complete extract is the most common and easiest to implement, and involves the transmission of the data specified above on all mortgage records to the Company's system. The transactional interface requires a more sophisticated procedure within your servicing system. It will identify uninsured properties and transmit only those records along with information on records previously transmitted as uninsured, but have since become insured, to our system. Properties that have paid off, or become REO, or subject to similar status changes, are also transmitted in the same manner.
This interface can be accomplished using an existing facility, or via the standard e-Trac interface specification. The Company will work with your service bureau, or in-house personnel, as needed to implement an interface in the most effective and least intrusive manner possible. Once the interface has been established, data can be transferred via magnetic ‘round’ tape, diskette, modem, FTP or internet email. The most efficient method for your circumstance will be implemented.
Insurance tracking involves an automated response to the lack of current evidence of insurance associated with a loan maintained on your servicing system. This response commonly takes the form of two warning letters followed by force placement. The first letter is generated and mailed immediately upon recognition of the uninsured status by the system. The second letter will automatically follow two to three weeks later, if no response to the first letter is forthcoming. Force placement automatically follows two to three weeks after the second letter if there has been no response to the previous letters. A cover letter and notice of insurance will be generated and forwarded to your servicing unit for processing. Your personnel will confirm that evidence of current insurance coverage has still not been provided by the borrower, and if not, charge the force place premium to escrow and mail the cover letter and notice of insurance to the borrower. The Company will be assigned a payee code on your system, which will then generate a check which includes all disbursements posted since the last remittance. Alternative billing arrangements can also be implemented based on your specific needs.
Insurance coverage placed as a result of the tracking process is normally issued on an annual term basis. Should the borrower subsequently provide evidence of insurance with no lapse in coverage, the coverage issued by the Company will be flat canceled and all premiums returned to you to be deposited in the borrower’s escrow account. If there was a lapse in coverage (where the effective date of the borrower’s replacement coverage is after the issue date of the force place coverage), the Company will retain an earned premium based on a pro-rata cancellation of the force place coverage. The Company will generate an individual refund check in each case for you to deposit to the borrowers escrow account. Such cancellations will be automatically initiated by the system as a result of the data interface with your servicing system.
Customer
Service and Claims Processing
Customer service telephone support will remain your responsibility. The Company will provide the information necessary to allow your customer service personnel to effectively perform this function. Any questions involving details of the insurance product, loss reports, or claims status will be directed to the Company.
The system supports a portfolio segmentation capability to meet the special insurance management requirements of your portfolio. Each segment can have unique letter text, timing and force place insurance product. For example, Puerto Rican loans can be identified as a segment and have Spanish letter text, or the loans for a certain investor can have different text or letter timing. Flood insurance can be tracked in the same manner as homeowners insurance but will involve different letter text and force place insurance.