Mortgage Hazard Insurance Program

The insurance protection provided by our mortgage lender placed product is a dual interest manuscript DP-3 form for residential properties with a named peril coverage form for commercial exposures.

The maximum limit of liability is the loan amount at the time the policy was purchased, not to exceed $2,000,000.

When administering lender placed programs, Arcana provides full services to the Lender and becomes responsible for monitoring the lender's portfolio for insurance exceptions. Most Lender servicing systems are costly, lack the necessary risk management edits, and are cumbersome at best. Arcana’s - PC - Windows based platform design is extremely flexible and provides the information vital to the lender.

Arcana's duties will usually include receiving all insurance mail, insurance verification, document data entry, contacting the lender's customers through a series of notices and phone calls, working with the customer and their insurance agent to secure proper coverage, and placing a lender policy when necessary. Optional services include Loss Draft processing and Escrow Bill disbursement.

The lender must exchange pertinent loan and insurance information to Arcana on a scheduled basis. Updates include borrower name and address, loan amount, collateral type, flood zone if applicable, paid out loans, new loans, insurance information, and premium billings. This exchange is accomplished through electronic media, either by tapes or e-files.

Arcana receives insurance documents on a daily basis at Arcana's insurance servicing facility in Dallas, Texas. Our service staff is diligent in insurance document verification during which several key coverage’s are studied and authenticated, including deductibles, proper lien holder or mortgagee clause, endorsements, insurance company A.M. Best rating, insurance coverage amount, non-renewals, and cancellations. This information is keyed into the insurance monitoring system and the document is then stored in a document imaging facility.

If we determine an insurance exception has occurred, on an agreed upon schedule between Arcana and the Lender, a series of notices are sent to the borrower until the exception is satisfied. Phone calls to the borrower or the last known insurance agent may also be provided for an additional cost.

At the end of the month, Arcana will produce a statement for the Lender showing the net amount of premiums due Arcana, and contracted outsourcing fees and related expenses.

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