Protequity Default Protection

Protequity is a specialized solution designed to support home equity lending by helping financial institutions grow their portfolios while managing risk. As a form of credit default insurance and home equity default insurance, it enables lenders to expand originations, increase combined loan-to-value (CLTV) ratios, and strengthen portfolio performance with built-in protection against borrower default. 

Protequity is a credit default insurance program for lenders that protects home equity loans against borrower default while enabling portfolio growth. It supports higher CLTV lending and helps financial institutions reduce risk exposure in home equity lending through built-in default protection. 

What is Protequity Default Protection?

Protequity is a credit default insurance solution designed for lenders and financial institutions engaged in home equity lending. It helps institutions expand their lending programs by enabling higher combined loan-to-value (CLTV) thresholds, up to 100%, while managing the risk associated with borrower default.

The program works by providing protection on home equity loans in cases such as bankruptcy, job loss, divorce, or death. Instead of relying solely on traditional recovery methods like foreclosure, lenders can file a claim to help offset potential losses. This approach supports stronger portfolio performance and allows lenders to confidently grow their home equity portfolios while maintaining risk discipline.

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

  • Features

  • Benefits

  • Eligible Loans

  • Backed by an A.M. Best A Excellent Rating carrier.

  • Foreclosure is not required to file a claim.

  • Provides loan default coverage in the event of delinquency for any reason.

  • Claims can be submitted when a loan has been delinquent or in default for 90+ days.

  • The premium is calculated based on the monthly outstanding loan balances.
  • Allows lenders to expand the CLTV for good credit-quality borrowers to 100%.

  • Provides loan default coverage in the event of delinquency for any reason.

  • Allows lenders to reach and attract additional creditworthy clientele.

  • Increase interest income by expanding lending opportunities.
  • Closed-End Home Equity Loans (HELOANS)

  • Open-End Home Equity Lines of Credit (HELOCS)

  • Purchase Money Seconds

  • Home Improvement Loans:
    • Secured up to $250,000
    • Unsecured up to $25,000

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Additional Collateral Protection Insurance Solutions for Lenders

Risk management solutions to protect loan portfolios, reduce coverage gaps, and simplify insurance tracking. 

 
 
 
 
 
 
 
 
 
 
 
 

Blanket Mortgage Hazard

 
 
 
 
 
 
 
 
 

This Blanket policy eliminates the need to track hazard insurance, send warning letters and force-place hazard coverage after verifying insurance at loan closing. 

  • Check Mark Lender-Placed Program Alternative
  • 2 Check Mark Website Eliminates Hazard Insurance Policy Tracking
  • 2 Check Mark Website Provides All-Risk Property Coverage
  • 2 Check Mark Website Coverage Through Foreclosure Process
  • 2 Check Mark Website REO & Flood Coverage Available
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Outsourced Insurance Tracking

 
 
 
 
 
 
 
 
 
 

Outsource all the duties associated with opening insurance renewal mail, tracking insurance policies, sending warning letters and force-placing coverage.

  • 2 Check Mark Website Third-Party Insurance Tracking
  • 2 Check Mark Website Notifications Handled By Third-Party
  • 2 Check Mark Website Force-Placed Insurance Placed When Needed
  • 2 Check Mark Website Transfers Risk of Non-Compliance
  • 2 Check Mark Website Access to Real-Time Online System
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Lender-Placed Insurance

 
 
 
 
 
 
 
 

Gain access to a user-friendly system which generates CFPB compliant warning letters and allows lenders to easily add, cancel and edit coverage when necessary. 

  • 2 Check Mark Website Add, Edit or Cancel Coverage Online
  • 2 Check Mark Website Automated Warning Letter Cycle
  • 2 Check Mark Website Hazard, Flood and REO Coverage
  • 2 Check Mark Website Customizable Deductibles & Limits
  • 2 Check Mark Website Simplified Monthly or Annual Billing
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Have questions? Let’s connect.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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