Primarily, lender-placed insurance is necessary to protect the financial interests of a lender. Should a borrower’s property be damaged or destroyed while it is uninsured, insurance coverage will not be available for repairs or rebuilding. If this happens, your financial institution would sustain a financial loss on the property.
VSI insurance, also known as Vendor Single Interest Insurance, is a specific type of insurance that aims to protect a lender’s portfolio of vehicle loans by transferring the risk to the insurance company.
With the fluctuation of lending markets, financial institutions must be prepared to enhance customer retention, acquire new clients, and manage risk – building a lending portfolio in any circumstance.
Lending risk is a constant concern for financial institutions, and identifying potential pitfalls is crucial to maintaining profitability and stability. In this blog post, we’ll explore the most common lending…