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| www.lenders-financial.com Lenders Financial Insurance Services, Troy, MI February, 2011 | |||
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Insurance News Flood Insurance Reform Remains ElusiveReform of the National Flood Insurance Program (NFIP) has been attempted in each of the past three Congresses. In each session, reform legislation was introduced, and advanced through committee, but ultimately failed to be become law. Now, with a new session of Congress just begun, proponents of reform must yet try again. The primary reason for reform of the NFIP is to maintain it's long term viability. The NFIP is currently indebted to the U.S. Treasury for $17.5 billion. That is the amount it borrowed to cover its claim obligations resulting from hurricanes Katrina and Rita in 2005. With the debt still on the books, the NFIP is in effect, bankrupt. Full Story ___________________________ New Credit Protection Rules Postponed
The Federal Reserve Board on February 1, 2011 announced that
it does not expect to finalize proposed Reg Z and Truth In
Lending rules, that in part, would have impacted the sale of
credit insurance products.
The February 1, 2001 Press Release stated: "The Federal Reserve Board on Tuesday announced that it does not expect to finalize three pending rulemakings under Regulation Z, which implements the Truth in Lending Act (TILA), prior to the transfer of authority for such rulemakings to the Consumer Financial Protection Bureau (CFPB)." General rulemaking authority for TILA is scheduled to transfer to the CFPB in July 2011. At that time, the proposed new rules can be re-considered by CFPB. The proposed rules significantly increase the number of disclosures that must be given in order to exclude credit protection product premiums and fees from the APR for open-end consumer loan accounts, open-end mortgage loan accounts, and closed-end consumer loans.
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Insurance Solutions Escrow Requirements for ''High Priced'' Loans Lenders are required to establish escrow accounts for certain “higher-priced” 1st mortgages which are secured by a borrower’s principal dwelling. For those lenders not practiced in using escrows, the regulation is creating a unique challenge. They can implement the escrow procedure, for a relative few number of loans, or simply choose not to make these types of loans. One alternative is now available to lenders facing this challenge: using a 3rd party vendor for the escrow function.
One vendor is Sterling
Total Escrow - a collection of services that
empowers lenders to manage escrow accounts more
efficiently and effectively. Sterling Total
Escrow works hand-in-hand with the lender to ensure
ease of use, data quality, and RESPA compliance from the
Initial Escrow Analysis and Statement to bill
procurement, disbursement notification, and remittance
all the way through to the Annual Escrow Analysis and
Statement. __________________________ Lenders Financial Supporting the ICBA OneFlood Program Lenders Financial Insurance Services is providing Michigan marketing and support to the recently launched OneFlood Program, sponsored by the Independent Community Bankers Association (ICBA) and offered to it's banking members nationally. OneFlood integrates Flood Zone determinations with lender-placed blanket flood insurance, including tracking services. One Flood is administered by WNC Insurance Services, Inc. LPS Flood Zone Services provides the flood zone determinations. For more information, please click here
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LendersNews is a periodic communication for financial institutions, of interest to: Sr. Management Loan Ops Mgrs Risk Mgrs Compliance Mgrs Ins. Agency Mgrs To ADD a name to receive future issues of LendersNews, please click here To be REMOVED from receiving future issues of LendersNews, please click here To comment or send a question, please click here ... or call Lenders Financial Insurance Services at (248) 689-2001 |
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