Can anyone tell me how you are keeping insurance companies from dropping your bank as a 2nd Lienholder when the 1st Lienholder changes. We have had several situations where our HELOC customer has refinanced their 1st Lien. When the homeowner’s insurance company receives the change notice from the new institution, they automatically remove our bank as a lienholder. Are other bank’s proactively calling the insurance companies? Are you writing a letter to customer telling them to make sure this doesn’t happen? Are you doing something else?
I have seen this before in a past bank that I worked for and unfortunately there is not much you can do other than make your customers aware and do a very thorough review of the insurance information when you receive a change. It was something we had assigned to a specific person that stayed on top of it but it is time consuming to maintain. Maybe we have other members out there that have experienced this. Anyone else have suggestions?