Weekly Real Estate News
Summary
LenderLogix and Jerry integrated home insurance shopping and proof of coverage into LiteSpeed. Independent savings and closing time results were not disclosed.
Mortgage technology provider LenderLogix has added an insurance-shopping option to its LiteSpeed borrower portal through a partnership with Jerry, the digital insurance marketplace. The integration, announced October 12, lets borrowers request homeowners insurance quotes after submitting a mortgage application and sends proof of purchased coverage back into the lender’s loan file.
The companies are positioning the service as a way to address insurance earlier in the mortgage process. For purchase borrowers, insurance costs can change the total monthly housing payment and affect debt-to-income calculations. A policy that arrives late, contains an incorrect mortgagee clause or fails to meet a lender’s coverage requirements can also delay closing.
Under the arrangement, borrowers using a participating lender’s LiteSpeed portal can compare offers from Jerry’s insurance marketplace. Jerry says its platform works with more than 100 insurers, although that number does not mean 100 carriers will quote a particular address or risk profile. The borrower can buy coverage through the service, with licensed agents available to assist.
Once a policy is purchased, LenderLogix says evidence of insurance is returned to ICE Mortgage Technology’s Encompass loan origination system, including the lender’s mortgagee clause and other specified requirements. The companies say updates can flow through to the file when policy information changes before closing.
Availability does not establish measured savings. The companies did not release independent data on how often the integration reduces premiums, prevents a closing delay or changes loan qualification. Jerry’s marketplace may give borrowers additional options, but any premium depends on the property, coverage, deductible, claims history, location and underwriting appetite of available carriers. Borrowers should compare the total terms of policies rather than price alone.
An insurance problem that reaches beyond closing
Homeowners insurance has become a more consequential part of mortgage underwriting in markets exposed to severe weather and rising repair costs. A lender generally needs evidence of acceptable hazard coverage before funding, while a borrower needs to understand the recurring expense and any exclusions that could leave the property inadequately protected.
Insurance quotes also can be a moving target. An initial quote may change after a carrier reviews roof age, replacement cost, property characteristics or prior losses. In states where carriers have reduced their appetite for certain risks, a borrower may have fewer viable options than a national marketplace’s headline insurer count suggests.
LenderLogix says existing LiteSpeed lenders can enable the integration without a separate technology project. The companies plan to demonstrate the product at the Mortgage Bankers Association’s annual convention in Chicago on October 13. They did not disclose the commercial terms between the partners, whether referral compensation is involved, or the share of LiteSpeed lenders that have activated the feature.
The announcement is relevant to lenders trying to reduce last-minute closing conditions, but its practical value will depend on quote availability in difficult insurance markets, accuracy of lender-ready documents and the borrower’s ability to obtain suitable coverage at an affordable price.
Source: LenderLogix’s October 12 announcement. See also WRE News coverage of insurance availability during Hurricane Isaias.
