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Title Insurance for Residential
Mortgage Lenders
First Title uses its Residential Loan
Protection Policy (RLPP) to insure Australian and New Zealand home loans. The coverage
of our RLPP allows lenders to proactively manage risk and design more efficient
lending processes. These efficiencies not only deliver time and cost savings but
can also facilitate higher rates of conversion of customers from loan applications.
First Title's RLPP
- protects the Lender's interest in the mortgage and assures validity and enforceability
of mortgage and correct priority;
- insures actual loss up to 125% of the policy amount;
- obliges First Title to provide the Lender with a legal defence at
First Title's cost on an unlimited basis;
- is available for refinances, purchases, clear title in personal, company and trust
names as well as loan increases for properties that have a predominantly residential
use;
- insures Torrens, Strata, Old System, Limited and Qualified Titles;
- incurs a one time premium for life of loan.
Title Insurance Programmes for Lenders
Our title insured lender programmes are tailored to suit lenders' requirements,
we currently offer:
- a full service programme through our national service centre network;
- a programme conducted through the lender's lawyer panel;
- a title insurance only services to underwrite lenders' in-house mortgage documentation
processing and settlement;
- portfolio title insurance on acquisition, sale or securitisation of a mortgage book.
First Title's RLPP is a no-fault policy and residential lenders
who are title insured are reaping the benefits.
Benefits include:
- reduces the amount of due diligence that the lender needs to undertake e.g. searches,
inquiries, etc (transactional or portfolio);
- provides an indemnity insurance policy that insures the lender that mortgages will
be valid and enforceable and thereby complements Lenders Mortgage Insurance;
- allows the transaction to be completed in a timely manner with the possibility of
streamlining processing e.g. FASTRefi® Refinance mortgages in
days not weeks;
- insures the lender for all legal defence costs should any of the security properties
not have good title or if any of the mortgages are challenged;
- insures the security and the indebtedness for its life so benefits are automatically
assigned to subsequent owners (eg securitisation);
- provides coverage for identity and title fraud;
- gives access to no-fault insurance; and
- insures exceptions to the rule against indefeasibility.
Claims Experience
With increased fraud/invalidity of mortgages evident in the market, title insurance
provides lenders and end investors with coverage greater than that attainable from
professional indemnity and mortgage insurance.
Our live claims experience is proving up the value of our no fault title insurance
policies. We have a demonstrated exceptional claims handling and claims paying record.
In Australia and New Zealand, First Title has issued over 306,000
policies and paid more than A$6.9 million in claims. For more about claims go to
our Claims Chronicles
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