Collateral
Protection

CREDIT LIFE AND DISABILITY PROTECTION

Central States of Omaha (CSO) credit protection programs provide excellent protection for borrowers and a great source of fee income for financial institutions. Coverage pays the loan balance off upon the premature death of the borrower and helps make monthly payment when borrowers become sick or injured and not able to work.

TERM LIFE INSURANCE

Premium guaranteed for terms up to 30 years with level death benefits. Affordable coverage for large agricultural and commercial borrowers as well as individuals. An easy application process and streamlined underwriting to simplify the process.

MORTGAGE IMPAIRMENT ERRORS AND OMISSIONS POLICY (MIE&O)

Blanket policy that protects lenders interest in the event the financial institution suffers a loss due to the borrower failing to maintain adequate coverage on commercial and residential real estate. MIE&O can eliminate the need for tracking hazard insurance on mortgaged property and helps satisfy regulatory requirements.

LENDER PLACED HAZARD INSURANCE

Allows lenders to force placed hazard insurance on borrowers that are failing to maintain insurance on real estate. Lenders have authority to place coverage on known uninsured occupied or vacant commercial or residential properties. This coverage can also be used for OREO properties. Liability is also available.

FLOOD ZONE DETERMINATIONS

ServiceLink National Flood is one of the leaders in the U.S. providing service to 7 of the top 10 lenders in the nation. 93% of the standardized addresses processed are returned immediately. Competitive Life of Loan rates and free re-certifications on refinanced loans. Enhanced, no-cost benefit “Certmap” provides lenders with aerial photos of property located in the SFHA in conjunction with the actual flood zone area.

GUARANTEED AUTO PROTECTION (GAP)

Frost Financial protects borrowers against depreciating auto values by using VisualGap. If the value of a vehicle is less than the loan balance, there is a GAP that is not covered by standard auto insurance. Gap pays the difference between the actual cash value (primary auto coverage settlement) and the loan balance when the vehicle is deemed a total loss.

VENDORS SINGLE INTEREST (VSI)

VSI eliminates the need to track insurance on titled collateral. The borrower is charged a minimal fee at origination which is used to cover losses when a delinquent account is repossessed and there is uninsured physical damage. The lender benefits from a reduction in charge-offs. Eliminates tracking, maintains compliance and protects the bank’s interest.

RESIDX RESIDENTIAL PROPERTY EVALUATIONS

Timely, objective, quality Evaluations. Exterior drive by, Exterior walk around and Interior-Exterior inspection reports are available. This service is beneficial in assisting lenders in complying with the Interagency Guidelines when a full appraisal is not required.