For lenders, integrating insurance coverage into their course of permits them to be extra environment friendly, enhance their clients' expertise and keep away from delays
HousingWire lately spoke with Tom Kriby, Vice President of Consumer Improvement and Partnerships at Westwood Insurance coverage Company, about how insurance coverage points can maintain up a house closing and the way lenders can combine insurance coverage into their course of to assist their homebuyers keep away from delays.
HousingWire: What are some sudden issues that may delay a house closing?
Tom Kriby: Everybody is aware of house inspections and value determinations can maintain up a closing, however insurance coverage is one other attainable roadblock for an on-time closing. It’s extra frequent than you suppose. Final yr, about 10% of the insurance policies we issued had been rush orders.
For a lot of homebuyers, insurance coverage slips by means of the cracks just because they’re extremely busy with all the opposite components that go into shopping for a house, like offering monetary paperwork, arranging transferring providers, and organising utilities on the new tackle.
Understanding and offering all the house particulars wanted for an correct insurance coverage quote and purchasing round for the very best protection and worth could be a main trouble. This may result in homebuyers procrastinating, however the closing can’t occur with out proof of house insurance coverage.
HW: How can lenders assist homebuyers keep away from closing delays?
TK: Ideally, lenders and insurers would work collectively to make the method as seamless as attainable.
Usually, a lender tells a purchaser to supply proof of insurance coverage, and out of doors of some reminders, the lender doesn’t supply any help for that process. Nevertheless, the method might develop into extra clear and simplified if lenders higher built-in the acquisition of insurance coverage into their mortgage origination platform.
If buying insurance coverage had been a extra built-in a part of the mortgage course of, it might create a one-stop store for homebuyers. Plus, by leveraging the data the lender already has on file, homebuyers can safe insurance coverage with just some clicks.
HW: What are the advantages of an built-in course of for lenders and their clients?
TK: For lenders, integrating insurance coverage into their course of permits them to be extra environment friendly, enhance their clients’ expertise, and keep away from last-minute surprises that lead to delays.
By higher integrating the buying of insurance coverage into the mortgage origination course of, lenders can prequalify their clients, calculate DTI rations, request EOI, and course of any deadline adjustments inside minutes.
For homebuyers, insurance coverage could be difficult to navigate alone, however in a streamlined strategy, they’ll immediately get a custom-made quote from main insurers with out a lot effort. This protects them time and spares them the effort, making them much less more likely to procrastinate buying that important house insurance coverage coverage.
It provides as much as an improved expertise for each the lender and the shopper.
HW: How does Westwood Insurance coverage Company assist lenders supply a extra frictionless buyer expertise?
TK: At Westwood, we’ve been utilizing know-how to innovate the insurance coverage business for the final 70 years, and we genuinely consider that closing on a house ought to by no means be delayed as a result of insurance coverage.
We have already got a seamless course of arrange for buying insurance coverage, and we at the moment work with a few of the largest nationwide lenders to shut greater than 85,000 houses per yr.
Our strategy permits lenders to supply their clients with added worth. Prospects are by no means various minutes away from personalised quotes.
As a result of we work with over 35 insurance coverage carriers, Westwood can present the very best protection at most financial savings with out complicating the method. We pleasure ourselves on delivering options that create a greater general expertise for lenders and their clients.
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