New Hazard Insurance Policy
Due to changes in the mortgage and insurance industry, beginning Monday, August 25th, Rate will be instituting new requirements when reviewing property insurance. These extra steps will help insure that our position as lien holder against the properties we lend on will be protected. Fannie Mae's guidelines permit only insurance companies with a specific level or higher of financial stability ratings. The Underwriting department will require homeowner’s insurance policy (if applicable) prior to closing. Rate’s Broker Liaisons will confirm acceptable insurance rating level thru one of the rating agencies below. The Closing department will now be requiring proof of the minimum accepted rating level before a loan will be sent to closing.
Rated Insurance Underwriters
A hazard insurance carrier for any first mortgage needs to meet only one of the following rating categories (even if it is rated by more than one of the rating agencies):
ØCarriers rated by the A. M. Best Company, Inc. must have either:
oa “B” or better Financial Strength Rating in Best’s Insurance Reports, or
oan “A” or better Financial Strength Rating and a Financial Size Category of “VIII” or greater in Best’s Insurance Reports Non-US Edition.
ØCarriers rated by Demotech, Inc. must have an “A” or better rating in Demotech’s Hazard Insurance Financial Stability Ratings.
Ø Carriers rated by Standard and Poor’s must have a “BBB” or better Insurer Financial Strength Rating in Standard and Poor’s Ratings Direct Insurance Service.
A.M. Best Company:
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Demotech:
Standard and Poor's:
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Please feel free to contact your VP of Wholesale Lending or the Underwriting Department for further clarification if needed.
Thank you for your continued business!!