Fiserv Lending Solutions home equity programs are designed to enhance lending volumes while providing for prudent risk management.
 
Benefits Derived through Credit Enhancement programs:
 
Guidelines issued by the Federal Regulators refer to this type of insurance coverage as an effective risk management tool for HLTV lending.  By insuring 100% Equity Loans and Lot Loans, the lender is able to remove the loans from the 100% capitalization requirement and eliminate loans as exception items to supervisory limits. Capital relief can create significant advantages in today’s competitive lending environment. 
 
The insurance company backing the program is an A.M. Best “A” rated carrier.  The policy will cover claims for up to 10% of a lender’s annual volume of loans produced.  Premiums are paid monthly on the outstanding balance of insured loans. Reporting under the program is simple with one rate and one policy covering all loan types.
 
We have five programs; Home Improvement, Closed-end Home Equity, Secured Line of Credit, 80/20 Second Mortgage Purchase Money and Lot Loan Purchase.
 
Home Improvement - A lender may make and insure a loan for the improvement, repair, or alteration of any type of property as long as the borrower has ownership interest in the property.  Mobile homes on rented land are ineligible. The types of improvements can include above ground swimming pools and hot tubs. 
 
Secured Line of Credit  / Closed-end Home Equity - A lender may make and insure closed-end or HELOCs with loan to values up to 100%, on primary and second residences.
 
80/20 Second Mortgage Purchase Money - This program can assist borrowers in the purchase of a residence by reducing the amount of money necessary for a down payment.  The equity loan is closed at the same time as the first mortgage and using the same appraisal and title work which eliminates costs to the borrower. The new second mortgage eliminates the need for the PMI insurance on the first mortgage and provides the lender an equity loan producing interest income. Loans and Lines are eligible loan types.
 
Lot Loan Program - The Lot Loan Program allows a borrower to finance up to 100% of the purchase price of a lot used for residential purposes. Eligible property types include recreational land.