Coverage of the entire mortgage loan portfolio against uninsured physical damage without the aggravation and expense of tracking property insurance.
Provides lender with uninsured property coverage on the entire portfolio
Covers residential, commercial and mobile home loans
Provides all-risk residential and commercial property coverage
Covers second mortgages and equity loans
Option to cover Real Estate Owned (REO) portfolios
Eliminates need for insurance follow-up after loan closing
Eliminates need to track and report individual properties for coverage
Covers uninsured physical damage without default or foreclosure
Pays claims at replacement cost versus ACV if lender opts to repair property
A hurricane causes serious wind damage to an uninsured property location, impairing your commercial mortgage loan. A loan customer cancels their homeowner’s insurance, and because it wasn’t caught by your financial institution’s understaffed insurance tracking group, a fire causes significant damage to the residential property. What if you could protect your financial institution from losses such as these? Discover how blanket mortgage hazard coverage helps mitigate the risk of uninsured mortgage properties.
With all the work involved in originating and servicing of mortgage loans (on residential, commercial and mobile home properties), keeping track of property insurance can be a real hassle. Your staff may not be able to dedicate sufficient time to keep up with insurance policy cancelations and renewals due to the sheer number of loans your institution handles. Fortunately, blanket mortgage hazard insurance can help you avoid all the extra work of tracking insurance, while still protecting your institution’s bottom line.
Blanket mortgage hazard insurance covers your entire mortgage portfolio, giving you one policy protecting all your loans. Blanket hazard protection for mortgages secured by commercial, residential and mobile home properties, including equities and second mortgage loans. Blanket mortgage hazard covers uninsured physical damage to a property without having to go through the default or foreclosure process. If you choose to repair the property, the claim is paid at replacement cost rather than actual cash value.
Blanket mortgage hazard insurance is designed to provide broad coverage for all uninsured physical damage to a collateral property.
A blanket mortgage hazard policy allows the lender to avoid making errors in the complicated CFPB-mandated uninsured property notice sequence.
At Lee and Mason Financial Services, we’ve spent the past 60 years finding ways to mitigate risk for financial institutions. Please feel free to contact us for more details.