Kirchmeyer & Associates Inc., a national appraisal, database and real estate appraisal consulting company, has partnered with Wrightstown, Pa.-based Group9 Insurance Solutions to offer a new collateral valuation insurance program.
The program protects against default losses, including repurchase expenses, affecting eligible loans including firsts, seconds and home equity lines of credit, the companies say.
According to the firms, the program protects the financial institution against an actual financial loss if the warranted collateral value is ultimately determined to be in excess of the variance of the collateral value determined as of the date of the original appraised value. When a loan defaults or forecloses or when a loan-repurchase demand occurs and a valuation inaccuracy is discovered, the insurer steps in and pays the claim subject to the terms and conditions of the insurance policy.
A specialty insurance company working with Group9 underwrites the program.