Mortgage Insurance Tracking

Our Outsourced Mortgage Insurance Tracking service helps streamline hazard and flood insurance management, ensuring compliance and reducing risk for real estate loan portfolios.

Mortgage Insurance Tracking

Insurance Tracking not only provides peace of mind but also ensures compliance and security for lenders, playing a pivotal role in identifying uninsured collateral within mortgage and commercial loan portfolios.

Our Insurance Tracking program offers a compliant and reliable method to confirm that all collateral within your institution maintains adequate insurance coverage. In many cases, a Lender-Placed Insurance policy is utilized to secure coverage when collateral is found to be uninsured. Whether tracking insurance on residential mortgage loans, commercial real estate, or multi-collateral commercial loans, we provide tailored solutions to meet the unique needs of lenders.

Unlike a Blanket Mortgage Hazard Insurance policy, which eliminates the need to track hazard insurance post-close, an Outsourced Insurance Tracking program can alleviate tedious internal tracking responsibilities while still offering lenders valuable insights into their loan portfolios

Features
Benefits
Coverages

Comprehensive insurance monitoring for residential, commercial, and multi-collateral loans.
Compliant warning notification cycle for insurance policies that have lapsed, cancelled or non-renewed.

Management and initiation of force-place coverage is handled by the tracking partner.

Solutions tailored to the specific needs and preferences of each lender.

Compliant processes and procedures that adhere to regulatory requirements and industry standards.

Detailed reports on insurance status and coverage for easy monitoring and decision-making.

Transfer all duties associated with tracking insurance, sending notifications and force-placing coverage.
Streamlines loan servicing efficiencies by eliminating the need for manual tracking and management.

Transfers the increased risk of human error and potential non-compliance when tracking internally.

Potential cost savings compared to in-house tracking methods.

Reduces the risk of financial losses due to uninsured collateral.

Transfers mail sorting, recording, and retention of insurance.

All-Risk property coverage.
Property and Liability coverage available for REO (real-estate owned) properties.

Coverage available on occupied and vacant properties.

Residential properties are protected against all-risks unless specifically excluded.

Commercial properties can be written as Special Form or Named Peril.

Outsourced insurance tracking is a service where lenders hire a third-party provider to monitor and manage insurance coverage on properties securing their real estate loans.

Lenders use outsourced insurance tracking to ensure continuous insurance coverage on properties, reduce the risk of uninsured losses, streamline administrative tasks, and ensure compliance with regulatory requirements.

Outsourced insurance tracking allows lenders to offload the time-consuming task of monitoring insurance coverage to experts, freeing up internal resources. It ensures that properties remain adequately insured, reducing the risk of financial loss due to uninsured hazards.

These services can cover various types of properties, including residential homes, commercial buildings, condominiums, and multifamily dwellings, among others.

The third-party provider monitors insurance coverage on behalf of the lender. They track policy expiration dates, verify the adequacy of coverage, and follow up with borrowers to obtain updated insurance information if necessary. They also manage communication related to insurance lapses or deficiencies.

Borrowers typically need to provide proof of insurance, including policy details such as coverage limits, effective dates, and the insurance carrier's contact information. This information is used by the tracking service to ensure compliance.

Policies are typically monitored on an ongoing basis, with regular checks to verify coverage status and expiration dates. Some providers offer daily or weekly monitoring to ensure timely intervention in case of lapses.

If a property is found to be uninsured or underinsured, the tracking provider notifies the lender and borrower promptly. Depending on the lender's policies, they may take actions such as placing force-placed insurance or requiring the borrower to obtain adequate coverage.

Yes, outsourced insurance tracking services can often be tailored to meet the unique requirements of each lender. This may include custom reporting, integration with existing systems, and adherence to specific compliance standards.

Lenders evaluate providers based on factors such as the provider's reputation, experience in the industry, technology capabilities, customer service, pricing, and ability to scale with the lender's needs.

Common challenges include ensuring accurate and timely communication with borrowers, managing exceptions and discrepancies in insurance information, and integrating tracking systems with existing loan servicing platforms.

Costs vary depending on factors such as the volume of loans being tracked, the level of service provided, and any additional customization required. Providers may charge a per-loan fee or a percentage of the loan portfolio value.

Outsourced insurance tracking providers are often well-versed in regulatory requirements governing insurance coverage for real estate loans. They help lenders stay compliant by ensuring that all properties in the portfolio maintain adequate insurance coverage as per regulatory standards.

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