Mortgage impairment insurance facility for financial institutions launched

The offering is in partnership with Lloyd's of London

Mortgage impairment insurance facility for financial institutions launched

Insurance brokerage Hub International has introduced its mortgage impairment (mi) insurance facility offering for small and mid-tier financial institutions.

The offering aims to provide lenders protection and unique value-adds to reduce their risks and receive faster quotes.

Hub said that while the requirements of secondary market MI insurance are based on a sliding scale that directly correlates to the size of a financial institution's portfolio of mortgages, they are the bare minimum. The requirements may not provide adequate coverage for a big claim or multiple claims in one calendar year.

"There are very limited MI options for small and mid-tier financial institutions that want a holistic solution for their lender risk management," said Scott Eckerty, president of Hub's financial institutions specialty practice. "Hub saw an opportunity to create a win-win for all by offering more value-adds for our clients and an opportunity for Hub to expand our offering to thousands of new customers regardless of the size of the financial institution."

Hub is offering the MI coverage in partnership with Lloyd's of London. Additionally, the company is offering value-adds including balance of perils coverage for perils not required of the borrower, the ability to include significant earthquake limits for those clients with exposed portfolios, and coverage for lenders across all real estate property loan types for the time between origination and loan sale.

 

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