Recent Posts

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

The Use of Data Analytics Helps Investor and Servicer Clients Measure Risk and Reward

Posted by DIMONT on June 20, 2016 at 9:30 AM

In a recent press release, we mentioned utilizing data analytics to help investor and servicer clients better measure risks and rewards of investing in loans with commercial and residential real estate properties as collateral. We are taking that process to the next level of tech-forward thinking by partnering with Relus Technologies.

Working with Relus to utilize the latest version of Apache Spark in an Amazon cloud environment, DIMONT now has the unique capability of predicting potential insurance claim recoveries on nonperforming mortgage loans, and a process to re-calibrate these models as new outcome data is generated from operations. These sophisticated models consider multiple attributes over an extended period while adjusting for current market conditions and trends. Building this in a cloud environment insures a secure, highly scalable and cost effective model.

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Topics: Technology

Three Things Mortgage Servicers Should do to Accurately Assess MFIR

Posted by DIMONT on January 19, 2016 at 9:30 AM

three things MFIR.jpg

In recent years, major flooding has occurred due to storms like Katrina and Sandy; and, this flooding has caused devastating property damage. Large flood events and legislative changes have added to mortgage servicers’ workload, as they must analyze mortgage portfolios to ensure they meet the Minimum Flood Insurance Requirement (MFIR) on mortgage loans within their portfolios. In determining the MFIR, the servicer must ascertain the appropriate amount of coverage without over-insuring the property.

Many servicers are attempting to determine the MFIR on their own. The most problematic piece to determining MFIR is calculating a building’s insurable value. While the government has provided some guidance on how to calculate insurable value, not all mortgage servicers are implementing the guidance correctly. Some servicers are still using the appraised value or hazard coverage amounts to determine a building’s insurable value. This is not correct; a cost analysis approach is the only correct way to determine the MFIR. The risk to a servicer who does not use a cost analysis approach is substantial. The most recent flood legislation removed the annual cap on National Flood Insurance Program (NFIP) compliance fines. The cost to a servicer for non-compliance can now run into the millions of dollars.

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Topics: Flood Insurance