Dealing with Lenders

[AgtLindsay]

Hello all, looking and open to any advise. I've dealt with a particular lender many times and he has been stressing me out.

The first incident occurred over 6 months ago. How this lender and his assistants usually ask for a quote for new leads is they send me a request for homeowners insurance - meaning they want me to get the home quoted and send them the Cert of Ins and invoice as quickly as possible. I always comply and work as quickly as I can. I am a Nationwide agent, we are able to generate a cert of ins. before the policy is submitted (I'm not sure if all other companies can do this) Well this house that they wanted quoted was a big old brick home downtown (St Louis area) I told them I would have to do an inspection as Nationwide agents are required to do. The big boss at the lender company started talking down to me saying he has NEVER heard of an insurance agent doing any kind of inspection, he then said when he got insurance on his MILLION DOLLAR home, the property was never inspected by the insurance company or third party. Is this jackass just being a jackass?? Do you as agents inspect the property before you write (take pictures, make sure it has a roof, etc) I thought ALL property insurance companies at least sent out a 3rd party inspector after the policy is written. Am I wrong??

2nd incident - Got a call from a current client who is buying a rental property on the 20th of this month, after he calls me the lender crawls right up my ass. Nationwide will not take a vacant rental so I brokered to Foremost. Lender calls after I got the Cert and invoice to them as quickly as I could and starts hounding me. He says this policy must be for Replacement Cost or Maximum Insurable Value (I and my primary have never heard of this term, neither did the rep from Foremost that I spoke to. Come to find out from the insured that the lender made a mistake and they are trying to move as quickly as they can to get coverage. My question here is 1.WTF? 2. Can a lender truly expect to have a bound policy within hours?? If any of you have come across this, how did you handle it?

I've been doing this for a couple years, I know more than I did last year but still feel very confused. Insurance is all I have and want to keep it as my career but Jesus I'm frustrated. ANY ADVICE WELCOME

 

[AgtLindsay]

Oh Insurance1822, bless you!! Thank you so much for your response. I lurk on here often and you always have the best advice. I greatly appreciate it. Unfortunately I need to put a lot more work in until I can tell the bastard where to shove it. I am still a new 25 yo agent, I know I have a LOT to learn.

So if I may ask you a few more questions...you send a form to the lender? What abouts does that look like or entail? Also have you heard of this "Maximum Insurable Value"? Am I a bad agent for not knowing this?

 

[djs]

I've known a lot of agents to get burned by not doing inspections properly. Loan officers don't care about this, unless they think there is a problem. If they think there is a problem, then sure, they never heard of this requirement before

A newer million dollar home usually isn't the issue. Old homes are. You don't want the policy cancelled when the carrier does an inspection on it.

He's playing you because you are young. You're fine, go by the rules, buy him lunch one day and set the expectations. Get him to send you the property addresses earlier in the process so you can do the inspections (if needed) prior to it becoming an urgency. He's been working on it for at least 2 weeks already, if he sends them to you earlier in the process, you won't write as high a percentage of them, but you can work it into your schedule much better, and do a better job for the broker.

Dan

 

[AgtLindsay]

Thank you Dan! I appreciate your response too, very much. Yes, I don't think he likes me too much (as I feel about him) but it's not like we have to sing "kumbaya" in the backyard together This mortgage company has brought me quite a bit of business and I'm not writing enough to be honest, so I want them to keep them coming. I just don't want them to think I'm an ***, but I am still new and learning!

Thanks again.

 

[insurance1822]

And to clarify...Despite all my trash talk I have for years kissed lender's butts & dealt w/ their BS to get their business.

 

[AgtLindsay]

So the lenders I deal w/ that pretty much say "here's the info give me a policy" work w/ spanish speaking people. They don't give a crap about coverage & I won't put myself on the line so I have a ridiculously detailed sheet I make them fill out that asks EVERY question there is to ask. Then, I quote big deductibles & all the added endorsements. I know there's no real client interaction they're just checking the insurance off the list for the people. So to cover my butt I throw on sinkhole, water backup etc & they just take it every-time. I do not issue polices without a signed app 1st.

I personally have never heard of this maximum insurable value & he's probably misconstruing something he heard elsewhere. It will be tough to keep that relationship though if you're only using Nwide + foremost. Many times those same lenders are the ones who NEED the premium at or below a certain number & I don't see how you do that w/ those carriers.

Yes it is tough. We are primarily a Nationwide agency, if the insured has good credit and new home or at least the roof is newer, Nationwide can do pretty good. Can broker quite a few, American Modern is one, but these other companies are non-standard (if that's the correct term) more for vacant houses or PC 10's etc.

I know the happiest and most successful agents are usually the independent ones. Unless you've been working with these companies for 10 years how do you keep all the different underwriting guidelines straight? Is it just a matter of calling the company directly and speaking to an underwriter if you have a question? Or straight memorizing their guidelines? Sorry I'm going a bit off our original topic, and I don't want to keep you but I know you are a fountain of information for a newbie like myself.

Thanks again!

 

[insurance1822]

When you're doing alot of business, you're constantly having to check into guidelines so despite the fact there's alot of carriers...you do learn it all quickly. Plus, you learn rather quickly where certain risks will fit as well so you avoid certain companies all together.

That being said, it's imperfect. I get burnt at least 1x per month on a new guideline or process that I didn't know changed. Oh well, cost of doing business.

 

[agentinsouth]

I procure all my business from lenders & I know exactly the type of lender this is. Ultimately, you need to set an expectation about how you can turn quotes around. You need to speak w/ people & discuss coverage & can't just blindly issue policies. I put together a form I need completed & I always insist they get the customers email so they're included on all correspondences. These lenders are always working on short notice, things are always hectic & chaotic & it speaks volumes about how they run their business. Fortunately, I'm big enough where I don't care & will turn them away. But I got as big as I am because I was the lender's b*tch for years. So my stance is keep the relationship happy but set expectations. And the guy saying he's never heard of inspections or whatever? He's just entirely full of $hit OR he mentally checked out of originating loans years ago when insurance companies didn't all inspect. That used to be the case & if his dumb a$$ just pushes paper & gets on his LO's for production he literally may not realize this is how the market works. I will tell you this, the time will come when you can tell that boss man to go f*** himself & it won't matter because you're so big. In fact, I just did that 2 days ago to an LO who spoke to me w/ an attitude. It's truly the greatest feeling in my life even above seeing my kids born. This is why this business has made me how I am, because everybody is a gosh darn @$$hole

Yea... What he said! I narrowed it down to ones where we both work well together. I understand their pressures and they understand my guidelines. It is not perfect, but I won't work w/ a-holes anymore. Go out and find new ones, there are some good LO's out there. ----------

And to clarify...Despite all my trash talk I have for years kissed lender's butts & dealt w/ their BS to get their business.

And fortunately, they are the fastest way to build a P&C agency.

 

[indienoise]

Your III/NBS options should be pretty decent, even for standard/preferred homeowners, not just nonstandard. Unless your agency principal is new and isn't allowed yet to "broker for price", as the captive overlords call it.

Just hang in there until you have a big enough book. I left NW and started scratch last March, and am finally to the point I can afford to "forget" to call someone back, or fire someone as a client if it comes to it. Life's too short. But yeah the past year has been kissing ass and working too many hours. This too will pass.

 

[abkclauren]

Hello all, looking and open to any advise. I've dealt with a particular lender many times and he has been stressing me out.

The first incident occurred over 6 months ago. How this lender and his assistants usually ask for a quote for new leads is they send me a request for homeowners insurance - meaning they want me to get the home quoted and send them the Cert of Ins and invoice as quickly as possible. I always comply and work as quickly as I can. I am a Nationwide agent, we are able to generate a cert of ins. before the policy is submitted (I'm not sure if all other companies can do this) Well this house that they wanted quoted was a big old brick home downtown (St Louis area) I told them I would have to do an inspection as Nationwide agents are required to do. The big boss at the lender company started talking down to me saying he has NEVER heard of an insurance agent doing any kind of inspection, he then said when he got insurance on his MILLION DOLLAR home, the property was never inspected by the insurance company or third party. Is this jackass just being a jackass?? Do you as agents inspect the property before you write (take pictures, make sure it has a roof, etc) I thought ALL property insurance companies at least sent out a 3rd party inspector after the policy is written. Am I wrong??

2nd incident - Got a call from a current client who is buying a rental property on the 20th of this month, after he calls me the lender crawls right up my ass. Nationwide will not take a vacant rental so I brokered to Foremost. Lender calls after I got the Cert and invoice to them as quickly as I could and starts hounding me. He says this policy must be for Replacement Cost or Maximum Insurable Value (I and my primary have never heard of this term, neither did the rep from Foremost that I spoke to. Come to find out from the insured that the lender made a mistake and they are trying to move as quickly as they can to get coverage. My question here is 1.WTF? 2. Can a lender truly expect to have a bound policy within hours?? If any of you have come across this, how did you handle it?

I've been doing this for a couple years, I know more than I did last year but still feel very confused. Insurance is all I have and want to keep it as my career but Jesus I'm frustrated. ANY ADVICE WELCOME

I've had several lenders here recently that have been a thorn in my side. That being said it is asinine to write a house with no inspection. I do an initial inspection followed up by an independent 3rd party inspection. I create an Evidence of Insurance and invoice on new home purchases but i never submit until i know the home has closed.

Back to the lenders..... I usually work with the same handful but i always get a random one thrown in.... Yesterday one copped an attitude because i sent an EOI with ISAOA instead of tipping the whole thing out because the guy buying the house decided to go with my company rather than lender provided insurance for his home. He also threw a fit because the mailing address didn't match the property address.... Yeah dude because they haven't closed yet.

Anyway you get those sometimes but i always try to establish a good relationship because it is evident they'll send you more business in my experience.