Based on the current needs of the capital markets and 2nd lien/HELOC origination without title insurance, ProTitleUSA has launched a program which enables title search accuracy coverage in case of a loss caused by an error on the search. The coverage policy is through an A+ rated insurance provider that can enable coverage assignment and future securitization of assets.
The speed of HELOC or 2nd lien origination is under three to four days, as the Property Search Loss Protect
coverage is added to the search by default without delaying the loan underwriting process after the loan originates. “Loan origination can take an average of two to three days from the reception of application to funding using ProTitleUSA’s title search
with extra coverage accompanied with the Loss Protect product, credit score, AVM and ProTitleUSA’s integration with recording company, DocSolutionUSA,” says Alex Goldovsky, CEO of ProTitleUSA.
Typical products in the title insurance market for HELOCs or 2nd liens, similar to a Junior Title Insurance Policy, might be much slower than ProTitleUSA’s delivery of the full underwriting product line to orchestrate fast origination from application to recording. The premium can be tiered based on the loan amount: $100,000, $250,000, $500,000 or $750,000 per loan, or the use of a blended premium model can be applied for HELOC and 2nd lien origination. The cost of the premium would be based on the tier of coverage and in the range of $20 to $100.
Capital market transactions often lack the reps and warrants for a title search
and AVM combined. ProTitleUSA can customize the solution to make a buyer or investor comfortable by having an extra layer of protection for missed liens, mortgages, taxes and issues with ownership chains.
The extra coverage is quite useful for NPL and RPL transactions where the probability of a loss is much higher than performing liens or new origination loans. Capital market searches can have tier based coverage from 60 months through 240 months. The cost of the premium can range from $10 to $20.
Coverage can also be used by foreclosure attorneys to guarantee that the search will give accurate information, and will not cause their foreclosure case to be refiled at the cost of the attorney.
Please reach out to Suzanne Rotondo (email@example.com
), Director of Compliance, for additional information.