Outsourced Tracking Mortgage Property & Flood Coverage

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Three Key Benefits of Outsourced Insurance Tracking

With the housing market softening in many of the U.S.’s biggest cities and new foreclosure filings increasing as of late, many banks may find themselves seeing a greater need for mortgage hazard insurance or commercial hazard insurance. When homeowners and business owners stop paying their bills, insurance premiums can often be the first to lapse, and the last thing any lender wants is financial responsibility for losses that an insurance policy would normally cover.

But the rules and regulations that govern these insurance policies can be complex and keeping up with them is a full-time job in itself. Reassigning duties to ensure that your mortgage hazard insurance needs are thoroughly covered may leave other important areas lacking. For many lenders, Outsourced Insurance Tracking (OIT) is the answer. Read on for three of the top reasons having insurance tracking services is crucial in today’s market.

Improved Risk Management

Having a larger-than-normal number of foreclosures or pre-foreclosures on your books can be risky in itself. Letting a property’s insurance lapse or paying too much for a force-placed insurance policy or flood insurance policy, can increase your risk on each of these homes.

By outsourcing your insurance tracking services to an outside agency, you can transfer this risk (and responsibility) to a company that specializes in this service. An OIT provider can work with you to tailor each of your insurance policies, creating an effective risk management model across all your portfolios.

Highest and Best Use of Employees’ Time

Tracking hazard insurance can be a tedious and sometimes even mindless task that consumes quite a bit of an employee’s time. But doing it right every time is tough, which means it’s not the sort of task you can necessarily place on an entry-level worker. OIT allows you to assign each employee to the tasks that they’re best suited to, reducing your overhead and the risk that certain items might fall through the cracks.

Increased Customer Satisfaction

If your bank has been sending out quite a few force-placed insurance letters, you may have noticed an increase in the volume of angry phone calls to your customer service representatives. No one likes to get one of these letters and dealing with the aftermath can be an unpleasant experience all around. Outsourcing your insurance tracking can reduce the number of these letters you need to send, improve your customer satisfaction rate, and help to maintain your status as a community partner.

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We collect all insurance mail and match insurance status to each mortgage loan in your portfolio. Uninsured property owners are automatically sent CFPB compliant notices asking them to provide evidence of insurance.

Features

Full outsourced tracking of property insurance and required flood coverage for both residential and commercial mortgages.

CFPB Compliant notice generation — automatic placement of coverage

Pro-active outbound calling of insurance agents and companies reduces false-placement

Friendly & well-trained service center staff handles all insurance-related communication

Life-of-loan mortgage insurance tracking for a modest fee per loan made

A full set of management, control and compliance reports at your fingertips

Easy web-access to property insurance information on each loan

Benefits

Eliminates mail sorting, recording and storing of insurance documents on your premises.

Gives you up-to-date access to insurance status on each mortgage loan

Reduces internal cost of staffing and other expenses related to internal insurance tracking

Frees up time for your mortgage servicing staff to do more important tasks

Complies with insurance requirements mandated by regulators and loan funding sources

Improve customer service and responsiveness to your mortgage customers

Peace-of-mind knowing the risk of property loss is being professionally tracked