Perry Canet

Recent Posts

Why Servicers Should Outsource Flood Insurance Analysis

Posted by Perry Canet on October 20, 2016 at 9:30 AM

Umbrella_trans-300x250-flood.pngAn increasingly important part of the servicing industry is lender placed flood insurance valuation analysis. Accurately assessing the required amount of flood coverage to place on a property is an opportunity that the industry has not responded to in any meaningful way.  This fact is apparent from increased instances of inaccurately insured homes and failed audits. Many of these errors are due to servicers trying to manage flood insurance coverage valuation analysis themselves.  Flood coverage valuation is difficult to do accurately and efficiently; the root cause of this difficulty, for most servicers, is that flood coverage valuation is not part of a servicer’s core competency.

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Topics: Flood Insurance

Compliance and Flood Insurance

Posted by Perry Canet on May 10, 2016 at 9:30 AM

Umbrella_trans-300x250-flood.pngIt is the responsibility of financial service companies to manage their compliance burden as effectively as they manage other risks to their enterprise. The compliance burden related to the Nation Flood Insurance Program (NFIP) is an opportunity area for many companies that should not be ignored.

The NFIP has undergone radical changes in the last few years that have resulted in more risk for servicers. The Biggert-Waters Act of 2012 increased the civil monetary penalties (CMP) from $385 to $2,000 per violation and removed the annual cap on the amount of CMP’s that can be assessed against a financial institution. This has increased the potential exposure for mortgage servicers into the tens of millions of dollars if the Office of the Comptroller of the Currency (OCC) determines that a servicer has engaged in a pattern of violations of NFIP regulations.

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Topics: Flood Insurance