CastleLine Delivers Certified Loan Program to help Maximize Returns and Minimize Repurchase Risk
Peoples Mortgage has offered home buyers competitive real estate financing and personalized customer service since 1998. Over the last nine years, Peoples has grown from 30 to 520 employees and is active in 33 states. While quality control is extremely important to Peoples, even with strict processes in place, underwriting errors and regulatory missteps do occur. Any hard-to-detect underwriting error could result in a substantial loss to Peoples if Plaza was not insured under the CastleLine® Certified Loan™ Program. The Certified Loan Program helps protect customers from losses arising from loan manufacturing defects, underwriting errors and misrepresentations, and borrower, seller and employee fraud.
Ultimately, through Plaza's relationship with CastleLine, Peoples was recently able to:
- Save a total of
$65,000on one loan. Instead of incurring a $70,000loss, the company only had to pay a small insurance deductible of $5,000plus premium over par. As a member of the Lenders One® cooperative -- a national alliance of independent mortgage bankers, correspondent lenders and suppliers of mortgage products and services -- Peoples also benefited from a lowered deductible.
- Expand its volume of business and realize potential savings through this new strategic approach.
- Realize the value of Plaza's offering and determine that investors could no longer be weighed solely on price, efficiency and ease when selling on the secondary market.
"Based on our own calculations, we gain a value of more than 10 basis points (bps) per loan/per transaction with the Plaza relationship," said
"In today's competitive market, it is challenging to differentiate yourself from your peers," said
"Protecting and increasing company value is a primary goal for a lender," said
CastleLine provides an array of insurance products and financial services to parties involved in residential mortgages, private market securitization, personal property and real estate. Through CastleLine's consultative approach, customized and cost-effective solutions are provided to help clients manage their risk and increase profitability.1 CastleLine is part of the
About Peoples Mortgage
Plaza is a privately owned, full-service Wholesale and Correspondent Mortgage Lender founded in 2000. Headquartered in
1 The information contained herein is provided for general marketing purposes only. For terms and conditions of coverage, please refer to the specific policy wording.
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