First Key Title’s HelocProtect™ Report contains the same standard information as a Property Report: ownership vesting, open mortgages, liens, full-recordable legal description but also is covered by an enhanced E&O coverage. This coverage is up to $500K per report and can be priced by tiers.
Loan requirements and program features:
- FICO score of 600 or higher.
- CLTV cannot exceed 100%(unless approved by the insurance company).
- Offers complete protection against borrower fraud, identify theft, errors and omissions in recording the security instrument and undisclosed liens.
HelocProtect™ vs Uninsured Property Search
Uninsured Property Search
- HelocProtect™ Property Reports typically delivered within 24-48 hours.
- HelocProtect™ covers lenders up to $500,000 per report against borrower fraud, identify theft, errors and omissions in recording the security instrument and undisclosed liens.
- All property reports performed by vendor on a national basis, improving efficiency and costs.
- Insurance only applies to closed loans.
E&O Insurance Coverage information
- Coverage provided by insurance company with an AM Best rating of A Excellent.
- E&O Policy offering coverage from time of loan application through recordation – there are no “gaps” in the coverage.
- Up to $100,0000 per mortgage agreement with no aggregate limit of liability.
- Coverage follows the mortgage agreement and can be assigned to investors.
- Federal Home Loan Bank accepts policy by way of assignment.
- Term can be up to 30 years (cost varies).
- Covers 1-4 family residential properties, condos, and investment properties.
- No borrower affidavit required.
- Foreclosure is not required for claim submission.
- Master Policy coverage terms and policy limits—monthly loan closing data appended to master policy.
- Cost impacted by length of term (up to 30 years), loan amount coverage ($100K-$500K), modification to FICO and depth of report.
HelocProtect™ Services Overview
- Services performed under an annual, renewable term.
- Electronic ordering and delivery
- Dedicated email or Web portal entry
- Integration capabilities with Lender LOS
- Electronic Data or XML for integration into document Prep programs
- One-point of contact for report, recording and resolutions.
- Blended national average rate range of $150to $195 including document –Property report, E&O insurance and recording
- Excludes recording fees, taxes or special processing
- Property Report Fees are billed for orders regardless of whether loan closes (average rate range of $50 to $75).