The Mortgage Bankers Association estimated 2.7 million homeowners are currently in some form of forbearance, and for almost four months now, lender forbearance portfolio volume has hovered between 5% and 6% — since the MBA survey began in May. Managing all those forbearances has put a tremendous amount of work on mortgage servicers as some companies have had to hire hundreds of employees to carry out more customer support, putting a heavy emphasis on avoiding foreclosure.
Green energy incentives are financial rebates or rewards from the U.S. government or a local utility company designed to encourage property owners to incorporate energy-efficient products, water-conserving, renewable products, materials, or measures into their home or commercial building renovation projects or use them in new construction. The incentives take various forms. There are tax credits, rebates, tax deductions, grants, subsidy programs, and more. Examples of eligible upgrades include solar, geothermal, and fuel cells, certain types of insulation and roofing materials, and exterior windows with specific energy efficiency ratings.
It is late afternoon and you have had a full day with clients and examiners when you notice a certified letter on your desk. You review the letter and you are blindsided by the fact that your borrower has not paid their real estate taxes for over a year and now a third party has a lien on your property. This situation is unfortunately all too familiar for community lenders. Tax Liens are sold to investors in over 29 states. Local governments use property tax revenue to fuel the functions of public schools, police and park departments, libraries, and other vital local offices.
Lenders have several different options to protect their collateralized portfolios in the event that a borrower fails to maintain insurance. For many years, Collateral Protection Insurance or CPI, also known as force-placed, has been the prevailing product lenders have used to cover this risk. But now that blanket protection or VSI is available, many lenders are trying to choose between CPI and VSI.
In most states, VSI insurance can be directly disclosed and fully passed on to your borrower without affecting your Annual Percentage Rate (APR). Unitas Financial Services's VSI policy covers your financial institution for damage losses that you sustain from uninsured repossessions or skip losses where your borrower and/or collateral cannot be located (along with other coverages). By having the coverage, you are also relieved of the responsibility of tracking insurance documents on the covered collateral.