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Create an Additional
15%-25% of Loan Volume
At No Risk & No Cost To You!
The Equity
Protection Program
Is A Unique Credit Risk
Management Solution
For Lending Institutions
R
Increase Home Equity Volume
15-25%
Through The Expansion
of Loan To Value and
Underwriting Guidelines
R
Equity Protection Program
Pays 100% of a Loan Loss
In Case of a Default
R
No Charge-offs Or
Costly Foreclosures Required
R
Your Balance Sheet Shows
No Loan Default Losses
R
Eliminate REO Expenses
R
The Equity Protection Program is designed to give lending institutions
the ability to enhance loan options and provide valuable borrowers
with expanded solutions. The program may be customized to design
a loan program with expanded loan to value limits and underwriting
guidelines without increasing exposure to risk.
Expand Your Guidelines/Credit Parameters:
• LTV’s to 133% for Home Improvement
• Up to $250,000 in Loan/Line Amounts
• Debt Ratio Limit of 43%
• FICO scores as low as 660 on loans,
680 on HELOCs
Home Equity Products Eligible for the EPP,
subject to Carrier/Regional Limitations:
• Closed-End Home Equity Loans
• Home Equity Lines of Credit
• Purchase Money Second Loans
• Secured/Unsecured Home Improvement Loans
• Unsecured Loans
How Does EPP Work?
The Equity Protection Program is a fully insured loan portfolio
program designed to increase loan volume by expanding Loan to
Value thresholds and Underwriting Guidelines while protecting
you against costly defaults.
DGU Insurance Associates, LLC will work with you to design a
program to suit your needs. Utilizing a delegated authority to
underwrite loans using customized guidelines, you simply report
the loan balances and basic loan data each month along with your
premium. In the event that a covered loan defaults and becomes
uncollectable for any reason, it may be filed as a claim within
approximately 90 days of delinquency.
No foreclosure is required when filing a claim, and after the claim is
processed, you will be reimbursed for 100% of the remaining loan
balance. The policy provides for the payment of all losses for insured
eligible loans up to an amount equal to 10% of the aggregate net
proceeds of all eligible loans during each 12-month period.
Sample Guidelines for the Equity Protection Program
New Loan Criteria
Home
Improvement
Closed-End
Home Equity
HELOC
2nd Mortgage
Purchase Loan/Line
Unsecured
Home Improvement
Loan
Purpose
Home Improvement
Only
Any
Purpose
Any
Purpose
Purchase Money 2nd
(Combo, Piggyback)
Home Improvement
Only
FICO Score
660
660
680
680
660
Maximum Loan/Line
Up to $250,000
Up to $250,000
Up to $250,000
Up to $250,000
Up to $10,000
Maximum Term
240 Months
240 Months
240 Months
360 Months
120 Months
Maximum LTV
133%
100%
100%
100%
N/A
Debt Ratio Limits
43%
43%
40%
40%
45%
Ask your agent for more details regarding underwriting criteria for each loan type. We can create a customized structure to
address your unique needs, and will work with you and your staff to ensure a smooth implementation of the program.
DGU Insurance Associates
DGU Insurance Associates, LLC is a licensed Managing General Agency
that was created to provide and underwrite innovative products and
services to Financial Institutions nationwide. With more than 200 years
of combined knowledge, we offer clients unparalleled experience in
financial portfolio risk transfer. DGU partners closely and exclusively
with “A” rated carriers to provide you with not only exceptional claim
service, but to provide you customized programs that suit your needs.
In working with DGU, you will have an exceptional partner that will
work with you and your agent to seamlessly integrate EPP into your
lending products.
At its core, the Equity Protection Program (EPP) is a fully insured
program designed to originate quality loans to qualified borrowers
without adding additional risk to your financial institution. The DGU
team offers a unique approach to implementation, first educating your
loan department, assisting them throughout the process to create a
delegated authority program. DGU then follows up with periodic
discussions of results, reviews of loan files for approval, and analysis
of the working program to ensure that EPP is an effective tool for the
Financial Institution. One of the many benefits of working so closely
with the team at DGU, is that DGU’s underwriters have expertise in
both the insurance and lending worlds providing you with a partner
that truly understands your risk transfer solution needs.
DGU has built a solid infrastructure that will ensure your information
is handled appropriately at each step of the EPP program. While
data confidentiality and system requirements have evolved rapidly
over the past few years, DGU’s Information Technology has kept
pace with the ever changing environment through consistent
upgrades and evaluations to our systems, including multi-level
security verification and third party intrusion analysis. This attention
to securing client data has made partnering with DGU even easier
and safer for our customers.
We have little doubt that utilizing DGU as your Underwriting Partner
will provide you with the opportunity to expand your Equity Lending
to your valued borrowers.
Complete an application today to receive a quote!
Applications Can Be Found Online At: www.DGUins.com