SitusAMC launched Securent, a provider of comprehensive risk management and insurance programs for mortgage and mortgage backed securities (MBS) stakeholders.
Securent’s loan default insurance protects primary and secondary mortgage participants from the risks associated with defaults introduced in the loan manufacturing process, including underwriting defaults, compliance violations, fraud and misrepresentation and valuation errors, while increasing loan value, improving the speed of transactions, and enabling businesses to scale effectively to meet high borrower demand and market opportunities.
Securent’s range of offerings includes Loan Default Insurance and Mortgage Application Fraud Insurance with extension to cover MBS (RMBS) Residential Loan Default Insurance and Mortgage Default Insurance. mortgage default insurance (MSR) in the near future.
The policies protect mortgage lenders, investors and RMBS issuers as well as warehouse lenders and other participants in the mortgage market from liabilities and losses associated with errors, omissions or fraud introduced in the manufacturing process.
Securent’s innovative insurance offering builds on SitusATM’s proven track record of loan due diligence and advanced technology to provide more timely and accurate reviews that support the insurance process.
Customers may also use other loan screening service providers and, in such cases, subject to Securent’s approval process, such loans may be eligible to be insured under the Securent program.
“As profit margins tighten, mortgage market participants are more aware than ever of the potential losses associated with mortgage manufacturing defaults,” said Justin Vedder, president of Securent and mortgage market veteran, in a statement. “These fears can be alleviated with Securent. Our products mitigate transactional risk and enable lenders, investors and RMBS issuers to achieve superior results while being able to remain secure in the value of their investments.
Securent uses a proprietary risk management model and advanced quality control technology to assess, identify and price manufacturing risk on any mortgage asset.
The combined technologies allow Securent to more effectively identify loans that require a full review while reducing manual touchpoints on high quality / low risk loans.
This allows Securent to improve the lender’s execution while protecting the insured against the risk of mounting.
“We think of loans as buying them, just like our customers,” adds Vedder. “The only difference is that we insure them. If we take the risk of origination, we want to make sure that each loan is independently reviewed and insured accurately. This gives our customers the assurance that claims will be paid.
Securent covers most major underwriting flaws, including policy violations, income calculation errors, and data integrity.
It also covers compliance violations for points and fees, TRID errors, RESPA violations, fraud, and misrepresentation by employees, borrowers, and sellers. Securent also provides errors and omissions coverage and fraud coverage for valuation errors.