Is your competition offering home equity loan promotions with same day loan approvals,
“any purpose” loans added onto home improvement loans, even “no
equity needed” loans? Are your loan programs set up to provide these benefits
to your members? Credit Unions are continually faced with the challenge of offering
innovative ways for their members to tap into, and even stretch, their equity.
How can you pass these value-added services along to your members without placing
your credit union at risk?
The answer is credit indemnity loss protection. Credit indemnity loss protection
is an insurance product that enhances your current lending guidelines while
protecting your home equity lending portfolio against losses resulting from
loans that default. It enables you to make home equity loans to credit worthy
borrowers who do not fit within your standard underwriting guidelines; for example,
new homebuyers, members who don’t have enough equity in their homes or
members who are new to their jobs. A credit indemnity loss protection program
will also give you the tools you need to add ”any purpose” loans
on to home improvement loans; provide home improvement loans based on the improved
value of the home and eliminate title and appraisal work on loan amounts under
$25,000. You originate the loan or line, insure it and service it. You retain
all management of your equity lending portfolio. The Credit Indemnity policy
covers your exposure to losses due to default charge-offs, bankruptcies or foreclosures.
Why Credit Indemnity Loss Protection?
Credit Indemnity loss protection is designed to fit around your lending guidelines
to help you meet your home equity lending goals. Your loan programs will experience
expanded member benefits, enhanced lending guidelines and protection against
losses. Credit Indemnity loss protection enables Credit Unions, like you, to
streamline front end processing allowing for quicker loan decisions to your
members. If an insured loan defaults you receive immediate re-deployment of
funds, in accordance to policy provisions. Foreclosure is not required.
If your home improvement equity lending programs do not include credit indemnity
loss protection you could be missing out on the opportunity at hand. Let Old
Republic Insured Credit Services, Inc. (ORICS) show you the way to increase
your home equity lending volume and satisfy more of your members’ needs.
ORICS provides innovative loss protection solutions through credit indemnity
policies underwritten by Old Republic Insurance Company. ORICS programs provide
all of the benefits outlined above, and more. To learn about the benefits of
developing an ORICS Home Improvement Equity Lending program for your Credit
Union email us, visit us on the web,
or call us at 1-800-621-7873. An ORICS representative will help you build a
lending program that fits around your lending needs.
* Office of Federal Housing Enterprise Oversight (OFHEO) Repeat
Sales House Price Index (HPI) www.ofhea.gov/hpi.asp