Miniter Group, a company focused on providing various insurance and insurance-tracking solutions, has released a new blog series titled “Challenging the Force-Placed Insurance Business Model.”
The blogs discuss the history of force-placed insurance, going back to the 1980s. They follow the emergence of lenders partnering with insurance trackers to create fee-income force-placed insurance products, which often resulted in class-action lawsuits and regulatory scrutiny mandated by Dodd-Frank. RESPA modification by the CFPB then provided specific regulation for the force-placed insurance industry.
Ten years after the implementation of the Dodd-Frank reform, the industry has improved, but Miniter Group contends that now is the time to change the business model to benefit borrowers.
“Our blog will cover the history of force-placed insurance, and more importantly, it will be our forum to propose a new business model that will better serve the insurance tracker, the lenders and ultimately the borrowers that we serve,” says Jim Gilpin, chief operating officer of Miniter Group.
The blog series is available here.