Pace Harmon, a Vienna, Va.-based outsourcing advisory firm, has released ‘Optimizing Force-Placed Insurance,’ a report detailing strategies that mortgage servicers can employ to best position themselves in this new environment.
‘While the Federal Housing Finance Agency is now considering a solution to lower force-placed insurance costs for homeowners and taxpayers – a program they previously put off – mortgage servicers need to get ahead of this issue and consider new approaches for pricing and managing force-placed insurance,’ says Marc Tanowitz, principal at Pace Harmon. ‘The end goal is making sure mortgage servicers and insurers are performing value-added services and that investors' and borrowers' interests are represented.’
To prepare for the new market dynamics and opportunities, Pace Harmon recommends that mortgage servicers assess their current contracts, benchmark their pricing, and analyze their claim and loss data. Armed with this data, mortgage servicers will be well positioned to stay ahead of the curve by considering alternative approaches to insurance tracking, participating in the bearing of insurance risk and leveraging market competition to reduce force-placed insurance premiums.
The ‘Optimizing Force-Placed Insurance’ report is now available for complimentary download.