Protect yourself from loss due to borrower default while being backed by A.M. — the best A+ -rated insurance company. 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.
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. 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.
Lee & Mason’s Protequity program covers the following types of loans:
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.