05 Sep What is Lender’s Single Interest
Lenders Single Interest Insurance, commonly known as Blanket VSI or LSI, protects a lender’s interest in the collateral securing a loan when the borrower’s required insurance on the collateral lapses or is canceled.
Coverage is provided on a blanket basis to loans originated on and after the policy effective date and is extended to the Lender’s existing portfolio.
Administration is simple. There is no requirement to track borrower insurance following loan closing to assure that coverage on the collateral remains in force.
Loans which are secured by automobiles, motorcycles, watercraft, rec-vehicles and other chattel type property may be covered.
LSI is rated on a per new loan basis, which is a one-time charge at loan origination that is typically passed on to the borrower.
Each borrower pays a small fee to protect the entire portfolio from collateral loss versus force placing insurance on borrowers that are most likely facing a financial hardship. LSI eliminates the expense and aggravation of tracking insurance on auto portfolios while reducing the noise that CPI programs create.
For more details on the LSI program you can visit our product page L&M Blanket LSI Overview