Mortgage Impairment

Ask three questions when talking with your insurance agent about mortgage impairment insurance coverage: 1) Do we track customer renewals, cancellations, or neither? 2) Does this cover mortgage impairment by flood when flood insurance is required peril? 3) Does this cover mortgage impairment by flood when flood insurance is not a required … [Read more...]

Stop Tracking Your Customer’s Insurance!!!

For years I have been telling my bank and credit union clients to stop tracking their customer's insurance.  Really, stop! When you write a mortgage, you require that the customer buy property insurance (and maybe flood insurance). Then for the life of the loan, you track their insurance. Maybe you file renewals. Maybe you only respond to … [Read more...]

Is there an Impairment in your Mortgage Impairment Policy?

Questions are flooding in on this one... You have mortgages. Your mortgage customers are supposed to buy insurance on their property. What if they don't? If you know your customer has no insurance, you "Force Place" the insurance. What if you don’t know? Mortgage impairment insurance protects your bank from the-peril-of-no-insurance. … [Read more...]

American Modern Home Leaves Financial Institution Biz

Miniter Group announced today that American Modern Home Insurance Group is intending to exit the forced place/REO/OREO property insurance marketplace over the next twelve to twenty-four months. Read American Modern Homes press release here. This is a bump in the road but will not be a major issue for most banks.  Brokers like Miniter will … [Read more...]

Overview of Bank Insurance in Three Minutes

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The Perils In Your Mortgage Impairment Insurance

Mortgage impairment insurance pays for losses to mortgaged properties when the customer defaults on their loan due to a "re or other catastrophe. Many mortgage impairment policies limit the coverage to perils required by your bank’s mortgage documents — a very low standard in most cases. Look for coverage for special perils, all risk, or on an … [Read more...]

Construction Defect – Insurance Exclusions For Lenders

I've been talking about the issue of construction defect for a few years now. Here is the scenario. Your bank loans money to a developer for an apartment complex. Prior to completing the project, the developer goes under. You foreclose and sell the project to developer number two, who finishes the buildings and sells them. Two years later it’s … [Read more...]