One of Southern Title’s underwriters has been approved to offer a lower cost title insurance policy specifically designed for loan modifications. Florida Insurance Commissioner Kevin McCarty announced the OIR has granted the requests made by several title insurance underwriters to offer this reduced cost title insurance product specifically designed for loan modifications at a reduced cost to lenders. Called a Mortgage Priority Guarantee policy, the product is suitable when lenders amend an existing mortgage loan agreement in order to help a struggling homeowner remain in their home and prevent a foreclosure on the property.

Florida’s Office of Insurance Regulation (OIR) has approved three companies to sell this form of insurance in Florida. One of Southern Title’s underwriters, Old Republic National Title Insurance Company, is on the list. Westcor Land Title Insurance Company and WFG National Title Insurance Company are the other authorized insurers.

As a result of a large number of mortgage defaults, lenders are seeking alternatives to working with homeowners who are having a hard time making their mortgage payments. By modifying an original loan agreement, a lender can help a consumer stay in his or her home, by reducing the principal or interest on the loan, extending the loan payment period, or modifying the loan’s variable rates.

According to the OIR, the lender can utilize the Mortgage Priority Guarantee policy to protect the mortgage liens’ priority at a minimal flat cost of $125, saving potentially hundreds of dollars otherwise required for a full lender’s title policy. The result can be a substantial savings for borrowers who amend their mortgages because they are often required to pay the lender’s title insurance premium as part of the transaction.

If you are interested in modifying your mortgage and would like to take advantage of this newest title insurance policy, please call Southern Title at (866) 297-5535 or email me to get started.

One of Southern Title’s underwriters has been approved to offer a lower cost title insurance policy specifically designed for loan modifications. Florida Insurance Commissioner Kevin McCarty announced the OIR has granted the requests made by several title insurance underwriters to offer this reduced cost title insurance product specifically designed for loan modifications at a reduced cost to lenders. Called a Mortgage Priority Guarantee policy, the product is suitable when lenders amend an existing mortgage loan agreement in order to help a struggling homeowner remain in their home and prevent a foreclosure on the property.

Florida’s Office of Insurance Regulation (OIR) has approved three companies to sell this form of insurance in Florida. One of Southern Title’s underwriters, Old Republic National Title Insurance Company, is on the list. Westcor Land Title Insurance Company and WFG National Title Insurance Company are the other authorized insurers.

As a result of a large number of mortgage defaults, lenders are seeking alternatives to working with homeowners who are having a hard time making their mortgage payments. By modifying an original loan agreement, a lender can help a consumer stay in his or her home, by reducing the principal or interest on the loan, extending the loan payment period, or modifying the loan’s variable rates.

According to the OIR, the lender can utilize the Mortgage Priority Guarantee policy to protect the mortgage liens’ priority at a minimal flat cost of $125, saving potentially hundreds of dollars otherwise required for a full lender’s title policy. The result can be a substantial savings for borrowers who amend their mortgages because they are often required to pay the lender’s title insurance premium as part of the transaction.

If you are interested in modifying your mortgage and would like to take advantage of this newest title insurance policy, please call Southern Title at (866) 297-5535 or email me to get started.