www.lenders-financial.com         Lenders Financial Insurance Services, Troy, MI              February, 2011

Insurance News

Flood Insurance Reform Remains Elusive

Reform 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 Proposed

Proposed Rule – Revisions to Reg Z
Credit Protection Products
Docket No. R-1390

The Federal Reserve in August 2010, proposed new rules for requirements and disclosures affecting consumer credit insurance.

These rules affect these common credit insurance products: 

  • credit life insurance

  • credit disability insurance

  • credit involuntary unemployment insurance

  • mortgage cancellation insurance

  • mortgage disability insurance

  • mortgage accidental death insurance

  • debt cancellation

  • debt suspension products

  • GAP

Full Story

  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.

Read More

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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Lenders Financial Insurance Services
2838 East Long Lake Rd. Suite 110
Troy, MI  48085
(248) 689-2001