Run Time: 8:01
Protecting your portfolio against foreclosure- and vacancy-related claims
The dramatic decline the U.S. mortgage industry is facing is without precedent. Statistics from TransUnion show that mortgage loans that fall 60 days or more past due, which often lead to foreclosure, have risen for the past six quarters nationally - reaching 4.58 percent at the end of 2008. Up almost 16 percent from the previous quarter's 3.96 percent average, this rate is projected to increase in 2009.
The effects are rippling through the economy - affecting everyone from retailers to insurance carriers. Amid these difficult times, property insurance carriers are struggling with how best to monitor their homeowner book.
Policyholders facing foreclosure are less likely to protect and maintain their property. Some consumers who are in danger of falling behind on their mortgage may be tempted to use their homeowner policy as source of funds and even abandon their homes. As the temptation to file a false claim increases, the risk to the carrier is very real. Vacant and foreclosed properties pose a growing problem to carriers because unoccupied homes are more likely to experience a loss than an occupied property.
In this webcast, Jeff Reynolds, vice president of product development for TransUnion's Insurance Group, will explain the extent of the mortgage delinquencies and foreclosures and what they mean to property insurers. The webcast will provide insight into how carriers can better manage these costly claims by using analytic tools to predict mortgage foreclosures before they occur. By leveraging these tools to better monitor their property insurance books, carriers can reduce the number of unnecessary claims and maintain profitability.