PROTEQUITY

The Superior Equity Default Solution

PROTEQUITY
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Protequity allows lenders to increase loan-to-value for equity & second mortgages, while being protected from loss due to borrower default*

* BACKED BY A.M. BEST A+
RATED INSURANCE COMPANY

PROGRAM BENEFITS

Ability to expand Loan to Value threshold up to 100%

Broadens the loan eligibility spectrum, thus increasing the overall portfolio significantly

Expanded reach to stronger borrowers

Single rate for all eligible loan types

Increased cross-selling opportunities

Defaulted loans eligible for claim payment once they are 90 days delinquent

Expand lending without increasing balance sheet risk

Seamless implementation

ELIGIBLE LOANS

Closed End Home Equity Loans (HELOANS)

Open End Home Equity Lines of Credit (HELOCS)

Purchase Money Seconds (Piggyback Loans)

Home Improvement Loans

» Secured up to $250,000

» Unsecured up to $25,000

Protequity: What Lenders Need to Know

Protequity allows the lender to increase the loan-to-value ratio on equity (HELOC) and other second mortgage loans, including piggy-back mortgages. If your standard loan underwriting guidelines require 20% equity, Protequity will allow you to lend more money, while insuring your institution against default risk.

What Does Protequity Provide?

Protequity allows lenders to extend the loan-to-value to 100% of the property’s value, which is typically capped at 80%. This significantly broadens the loan eligibility spectrum to capture more loans without increasing default risk. It increases cross-selling opportunities for outstanding loans while providing robust default protection for the lender’s mortgage portfolio.

The premium rates are simple and do not require complicated accounting. The process of enrolling loans for coverage is a straightforward monthly electronic file. No personal identifying information needs to be submitted. Lee & Mason makes the process easy, with little or no administrative burden.

Claim process starts when the Protequity protected loan has been delinquent for 90 days. This minimizes the time in which the loan is non-incoming producing.

What Loans are Eligible for Protequity?

Lee & Mason’s Protequity program covers the following types of loans:

  • Closed End Home Equity Loans (HELOANS)
  • Open End Home Equity Lines of Credit (HELOCS)
  • Purchase Money Seconds (Piggyback Loans)
  • Home Improvement Loans
  • Secured loans up to $250,000
  • Unsecured loans up to $25,000

All types of equity and second mortgage loans are eligible for protection against borrower default, and the premium can be factored into your interest rate charge. By using Protequity for your equity and second mortgage lending, you can expand your lending opportunities, thus increasing your loans outstanding, without increasing default risk.