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Important Steps Lenders Should Take for Insuring Their Automotive Loan Portfolio

Posted by DIMONT on June 15, 2017 at 9:30 AM

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Ensuring auto loan borrowers maintain adequate automotive insurance coverage on their vehicles is an important task often overlooked. Most lenders have excellent processes in place to ensure insurance coverage at loan origination, however they often fail to maintain a sound process to ensure proper insurance coverage is maintained throughout the life of the loan.

In many cases, by the time we are called upon to assist the bank in filing a claim with the insurance carrier for damage on a repossessed vehicle, the borrower has either changed or canceled their insurance coverage, or signed a policy with an abnormally high deductible or one lacking in overall coverage.  

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Topics: Auto Insurance Claims

Why Custom Technology is an Essential Part of the Hazard Claims Process

Posted by DIMONT on June 8, 2017 at 10:00 AM

hazard insurance check.pngThere are few components of the modern mortgage business where technology is not a requirement for efficient operation; indeed, without our modern technology platforms, we would simply not be capable of operating in a compliant manner. This is particularly true when it comes to managing the complexities of the hazard claims business, where technology plays a pivotal role.

Historically, we had trouble finding software platforms on the market that met our needs and those of our clients, so we have chosen to develop our own proprietary platforms. As a result, we are able to interface directly with many of the systems used by our clients, as well as the systems in use by the nation’s property preservation companies, who often work closely with the same mortgage servicers with whom we partner. Additionally, we can interact directly with providers of lender-placed insurance products, allowing us to more easily share data, file claims quicker and report back to our clients with extreme accuracy.

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Topics: Hazard Insurance

4 Ways to Maximize Your Return on Auto Insurance Claims

Posted by DIMONT on May 25, 2017 at 9:30 AM

Key-Car-Orange1-300x121 - Auto.pngMany auto lending executives would be surprised to learn that filing insurance claims is one of the most effective ways to reduce overall loss severity on their repossessed auto portfolio.  Maximizing the institution’s return on auto insurance claims requires the right process be in place. Below we will share four ways to ensure your auto claims process is successfully managed.

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Topics: Auto Insurance Claims

How Long Does it Take to Process Hazard Insurance Claims?

Posted by DIMONT on May 18, 2017 at 9:30 AM

Time is money in the mortgage business and every day of processing time that an institution can save directly impacts its bottom line. That is certainly true in the case of hazard insurance claims. In fact, failure to adhere to a timeline can lead to much higher expenses and the possible loss of reimbursements or loan guarantees.

Naturally, it’s common for our customers to ask us how long it will take to process their hazard insurance claims. We resist the temptation to reply that “it depends,” though that is actually the truth. Instead, we help our customers understand which steps take up the most time in this important process and where we can more rapidly reach a favorable conclusion.

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Topics: Hazard Insurance

Ensuring Sufficient Hazard Insurance Coverage

Posted by DIMONT on May 11, 2017 at 9:30 AM

hazard insurance check.pngAfter over two decades of helping banks and mortgage servicers file claims and recover losses from insurance companies, we understand the criticality of having sufficient insurance coverage on collateral properties.

Investors face increased risk of loss when they have insufficient insurance coverage or the wrong kind of insurance coverage on a property that serves as collateral for a mortgage loan. Making sure that the coverage is both sufficient and of the proper type is critical for effective risk mitigation.

Having the Right Kind of Coverage for Your Collateral

Most servicers know that there are many types of insurance and only hazard insurance protects the mortgagee from risk should the property be damaged before the loan is paid off.

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Topics: Hazard Insurance

Bringing Hazard Claims Adjustment Experience to Auto Loans

Posted by DIMONT on May 4, 2017 at 9:30 AM

Key-Car-Orange1-300x121 - Auto.pngThe insurance claims filing process is an exacting business. One mistake can jeopardize the recovery, costing the lender both time and money. It requires an expert to do the job right and to recover the maximum possible for each claim.

After more than two decades of helping mortgage loan servicers successfully navigate the complicated business of filing hazard insurance claims on real estate collateral, we found that the skillset required for success in that market segment lines up particularly well with what is required to help auto lenders recover losses on their collateral as well.

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Topics: Auto Insurance Claims

DIMONT Successfully Wraps Up 2016 Used Car Week Conference

Posted by DIMONT on November 17, 2016 at 9:30 AM

With the end of 2016 nearing, DIMONT has been busy traveling across the United States for the conference circuits in both the Mortgage and Auto Finance industries.  Over the last two months, we have been a part of two of the largest Auto Finance conferences and wrapped up the final conference of the season this week.

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Topics: Auto Insurance Claims

Changing The Auto Claims Process: What to look for in your auto claims provider

Posted by DIMONT on August 30, 2016 at 9:30 AM

Key-Car-Orange1-300x121 - Auto.pngWhen auto lenders think about damage claims to recoup their losses on repossessed, damaged vehicles, they often think about the FTEs who provide a claims service as a part of their daily responsibilities, or the current vendor to whom they outsource.  The question is, are these employees and vendors doing enough?

The face of damaged auto claims has changed over the past few years.  Auto lenders are realizing that they miss out on thousands, and potentially millions, of dollars in claimable funds per vehicle they repossess.  With this realization comes the brainstorm to find a claims vendor who will recover these funds and maintain a compliant process while doing so.

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Topics: Auto Insurance Claims

More Compliance Q&A on Insurance Claims Management

Posted by DIMONT on August 1, 2016 at 9:30 AM

hazard insurance check.pngInsurance claims management is definitely one area in which servicers can benefit from the experience of the right third party partner. We wrote about this in a recent white paper we published where our compliance experts provided a complete rationale for this approach. There are simply too many compliance risks that servicers must overcome, causing company risk if they perform this work on their own.

In our paper, we covered claims for flood insurance, auto insurance and more. That paper is available now on our website. We welcome you to download it to find out more about why outsourcing insurance claims management can limit your compliance risk. After posting the paper, we received some excellent questions from readers. We addressed some of these questions in a recent post and will address the remainder of them here.

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Topics: Compliance

Reducing Loss Severity on FHA Loans in Default

Posted by DIMONT on July 12, 2016 at 9:30 AM

Filing claims on defaulted loans, whether they are hazard insurance claims on policies on real estate collateral or guaranty claims with federal government agencies for loss coverage on a federally insured loan, has always been important for servicers. This is particularly true for servicers of FHA loans.

There are two critical areas in which servicers can effectively limit their losses on defaulted FHA loans. The first involves collecting on hazard insurance that is in-force on the properties during the time the servicer is in charge of the asset, before it has been sold back into the market through REO disposition. The second is through effective handling of investor loss claims to the FHA after the real estate sales process is complete. We cover both in a new white paper that is available now on our website.

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Topics: Hazard Insurance