Industry giant Benesure has further extended its reach, inking a deal with VERICO to become the preferred creditor insurance provider for the network’s 2,100 originators.
“We are extremely pleased to join forces with VERICO,” said Rich Spence, Benesure’s VP of sales. Their 2,100-plus mortgage professionals represent a very attractive growth opportunity for us.”
VERICO claims some of the highest volume players in the industry, with Spence’s team ramping up efforts to sell their MPP wares to each of the network’s 190 offices. It`s all about ensuring “more of their clients have secure homes, and how they can earn significant revenue while doing so,” said Spence.
The agreement followssimilar deals with Centum and DLC, although all creditor insurance providers face the challenge of getting brokers to do more of that business rather than refer it on to insurance agents.
A tighter real estate market has likely helped that sales job.
Last year, both Benesure and a competitor also moves to sweeten their respective pots for brokers.
Under the terms of most creditor insurance plans, mortgage professionals collect full upfront payments within the first 60 days of a policy and a client’s home purchase -- a payment nonetheless subject to a 100-per cent take-back if the client cancels the policy in the first 12 months or fails a medical evaluation, which, in some cases, includes, a paramedical screening.
No-clawback programs largely reduce the consequences of that premature ending, although they trim broker compensation to four, seven or nine times the monthly premium and generally delay payment until after the first 60 days. The mortgage professional also agrees to have remuneration broken up into two instalments, the last paid only after the first year of the policy.