VSI or Single Interest Insurance is a customer-centric, efficient, compliant way for lenders to insure their entire consumer loan portfolio for a small one-time fee on each new loan. There are many advantages of the blanket product as compared to other options such as tracking insurance in-house or outsourcing tracking. VSI allows you to eliminate all insurance tracking and yet still cover all of your collateral without the needless hassles between you, loan officers, borrowers, and insurance companies.
How often do products come along that can significantly change your operation in a positive way? Lenders from all across the country face similar challenges when it comes to balancing budgets, managing workloads, and staffing levels while growing at the same time. Growth is great but means more files, more data, and more work for everyone.
Some vendors in the world of lending ask their customers to sign lengthy multi-year agreements and some also make it difficult to leave the agreement prior to the terms expiring. Read on for more information about negotiating contracts with vendors.
First, you need to read the contract and pay special attention to the following:
- Length of the term
- Terms of exiting the contract early
- Automatic renewals
- Conditions for both parties
To properly answer that question, you have to look at the entire program and the many different parts that are often overlooked. There are four different coverage sections that you should be evaluating:Lender-placed Hazard
Coverage for REO property
Liability insurance for REO property
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.
It’s no secret that interest rates are on the rise. If your customers haven’t taken advantage of refinancing their first mortgage loans by now, it may be too late for them to make it a cost-effective option.The market for refinancing a first mortgage to pay off debt, finance home improvements, or simply do a cash-out refi is just not as attractive as it was when rates were historically low. This creates an opportunity for junior lien mortgages, typically called HELOCs or HELOANs, to be in higher demand.