Mortgage insurance is an insurance product that insures lenders in the event that a borrower defaults on their mortgage and the property is then sold at a loss.
Our product is bespoke and can be tailored to suit specific lender needs. We generally offer our product on a delegated underwriting model basis where, provided the loan fits within the parameters we have agreed with the lender, insurance is provided on the loan once notified to us.
We offer both flow insurance (which provides insurance on a loan-by-loan basis every month) or insurance on a back book basis which protects a closed portfolio of loans. We have illustrated an example of one of our most basic solutions below, using a €200,000 property value and a 95% LTV (loan-to-value) mortgage, showing the potential benefits to a mortgage lender in the event of borrower default.
Mortgage insurance allows mortgage lenders to:
- Enter or increase volume in higher margin high LTV/first-time buyer lending whilst managing risk exposure
- Protect against house depreciation
- Improve the profitability of lending, allowing the mortgage lender to enjoy higher margins without taking additional risk
- Help maintain quality underwriting standards
- Reduce lender loan loss provisions
- Preserve capital
We offer flexible structures:
We are able to offer simple insurance above the 80% LTV on a loan by loan basis or more complex structures such as:
- First loss deductible and/or stop loss features
- Different depth of the cover (e.g. down to 70%)
The following are value added services we offer at no additional cost:
- Referrals: We offer a referral process for loans which are outside the agreed lending criteria but still considered a good risk. These loans are submitted directly with the lenders recommendation to our experienced underwriters and will be assessed within 4 hours of receipt.
- Lending Criteria: We can provide advice and guidance on new product development and expansion into new geographies, and the relevant policy requirements to do so. We can also consider buy-to-let or niche schemes.
- Quality Assurance: We audit samples of the lenders underwriting to avoid surprises down the road and to provide an independent, second set of eyes on the quality of the lenders underwriting processes.
- Arrears management and forbearance: With our global experience, we have significant knowledge of best practice arrears management & foreclosure solutions that we are able to share with our lender clients.
- Portfolio analysis: We can provide an analysis of lenders' lending portfolios.
- Business Reviews: We hold joint business reviews as often as our lender clients require.