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
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
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:
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
· The timing of the
sufficiency evaluation will now occur using the data at the time of new loan
· 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
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