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Loan Protector Augments Service with Tracking Control

Like many vendors, Loan Protector Insurance Services here will be showcasing new offerings during the Mortgage Bankers Association annual convention in San Diego. LP (www.loanprotector.com) has developed a new service called Electronic Insurance Interchange, a clearinghouse to share homeowner's insurance information with lenders.

At present, some 85 insurance carriers, including all the major firms, are aggregated on the service, created for lenders that prefer not to outsource their insurance tracking. "Our EII system will save servicers invaluable time by reducing their expenses and the amount of paper documents they receive," said Loan Protector president Ron Wiser. "Large servicers have been using this type of data interchange for years, but through advanced technology, Loan Protector can now offer this type of service to any size portfolio."

With EII, Loan Protector processes a master file or extract of the lender's portfolio and tracks all borrowers without current insurance, generating a series of custom warning letters to the borrower. During the cycle of letters, Loan Protector offers automatic coverage that protects lenders from any hazard insurance losses. If a borrower does not respond to the series of letters, the system automatically orders lender-placed coverage on the collateral property.

Lenders get real-time access to data and the ability to eliminate paper documents very document Loan Protector receives is imaged. Through the EII system, insurance records are saved instantly in the lender's servicing system.

Loan Protector's Easy Track, built on a client-server database aggregating X12 EDI interfaces with a lineup of insurance carriers, operates as an ASP with an interface written in Java. "We receive all the insurance mail and do the data input in our office," Mr. Wiser told Mortgage Servicing News.

"We give the lenders browser access. That is the only software they need."

With clients where LP does full outsourcing, "we will receive insurance information directly from State Farm or Allstate II is just that electronic feed that we have made available. We have built the interfaces, and we simply collect the information, aggregate it in one file, and give the information to the client who wants that particular service because they do not want to give up control of their tracking information."

For those servicers wondering whether or not to outsource insurance tracking, Diamond Bar, Calif.-based First Mortgage Corp. is a good company to talk to.

Founded in 1975, First Mortgage's portfolio hovers around $1.6 billion.

"Our history has always been to keep things in-house," said senior vice president Scott Lehrer, "keep things under the company's control. But what we found with the increase in volume and when people would change insurance companies because of increased prices, the servicing was becoming a monster to manage, because of the paper mill. We did not have any automation in terms of imaging. We literally had an entire file room dedicated specifically just to the insurance files. The employees within the insurance department had so much work they were becoming overburdened."

When he ran into Loan Protector at a servicing conference, Mr. Lehrer said he was impressed by their flexibility.

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