UPDATE – Missing Insurance Documents & New Loan Hazard Insurance Sufficiency
We need your help! We need to make sure we’re not erroneously force placing insurance on your borrowers’ accounts while remaining compliant with regulatory insurance requirements. Your assistance as described below will be greatly appreciated.
Importance of Obtaining Insurance Documents
As part of the new loan boarding quality assurance package provided to Cenlar, it is a requirement to provide evidence of adequate insurance. This entails providing a copy of the borrowers’ homeowners and flood insurance (if the loan is designated in a special flood hazard area) declaration page(s). It is critical that these documents are presented to Cenlar at onboarding for general insurance servicing and property coverage purposes.
Please note that if Cenlar does not receive evidence of applicable insurance within 30 days of onboarding, the borrower could enter a force-placed insurance letter cycle. To avoid borrower confusion and your frustration over these force-placed insurance notifications to your borrowers, it is imperative that Cenlar receives timely evidence of insurance on any new loan origination. If you are not already doing so, please utilize the Missing Document Report, which is distributed to you daily. The report provides a listing of missing documents that are not present on Cenlar’s document imaging system.
To ensure a positive borrower experience, it is important to be aware of these requirements during closing, as well as post-closing.
If you have evidence of insurance to supply 30 days post-boarding, please forward the documentation to one of the below locations:
· By Website: www.mycoverageinfo.com, using PIN CEN300
· By Fax: 1-843-413-7133
· By Mail: At the address below
P.O. Box 202028
Florence, SC 29502-2028
Update – New Loan Hazard Insurance Sufficiency Report
We also want to inform you of a change made to the recently released monthly New Loan Hazard Sufficiency Report.
· The timing of the sufficiency evaluation will now occur using the data at the time of new loan boarding.
· The report will provide you with insight related directly to the hazard coverage amount that boarded Cenlar’s servicing platform.
· Any loan that does not board with a replacement cost flag value and contains a coverage amount less than the original unpaid principal balance will report as “coverage amount less than UPB.”
Please note that no action will be taken by Cenlar on these accounts. The purpose is to provide you with accounts that portray potential insurance exposure to your portfolio. We encourage you to use this information to help assess the quality of the data or hazard documents that your borrowers are obtaining at closing and, in turn, are providing to Cenlar.
The update to the report will be made available on the 10th of April.
The naming convention of the report is as follows: Date__Client Sufficiency Report_Client Name