Pub. 7 2019 Issue 3

8 The Community Banker www.mibonline.org BLANKET PROTECTIONS – A UNIQUE FOCUS FROM GOLDEN EAGLE INSURANCE Featured Associate Member T he heavy regulatory burden that local community banks face in today’s lending environment has been well documented. Some regulatory relief has been offered of late, but many of the bur- densome administrative processes remain. In community banks everywhere, inefficiencies and frustrations can be common issues that are connected to these cumbersome internal processes. In a time when many communi- ty lenders are trying to adopt a “get lean” approach to their operations, they struggle to find solutions that match that goal. Collateral insurance tracking and force- placed insurance can be one area to review when identifying inefficiencies within oper- ations. Lenders have for decades been pro- grammed that tracking the insurance of loan collateral is the only method to protect them from an uninsured loss scenario. This process of monitoring the insurance documentation is a cumbersome assignment, no arguing that. Some lenders will pay a third party to handle the actual tracking, but there remains a substantial amount of internal work that goes into the monitoring of that tracking program. The entire process can be cumbersome and inefficient, leading to unnecessary negative interactions with their borrowers and local insurance agents. Human error remains a risk factor in any tracking program. In a lending world full of change, why haven’t providers done more to promote an alternative solution to this old-school dilemma? If the goals of these cumbersome processes are to protect the institution against uninsured loss and to appease the requirements of examiners, then it might make sense for a community lender to consider true Blanket Portfolio Protections in lieu of that tracking clutter. Blanket Protections can provide 24/7 coverage along with full compliance with examiners. Lenders that have made the switch to Blan- ket Protections share that the programs have resulted in reduced administrative workloads, reduced negative interactions with their borrowers, and overall improved efficiencies within their loan operations. A common theme among case studies of community banks that have made the change away from tracking and force-placement is that they have never even considered going back to that old-school tracking mindset. Golden Eagle Insurance, Inc. offers a new bundle of Blanket Insurance Products designed to cover the risk a lender carries in their collateralized loan portfolio when the borrower's coverage lapses. Blanket 360, the latest product in our portfolio protection line for community banks, covers collateral immediately after loan closing, eliminating the need for tracking and making operations more efficient. "Blanket Insurance protections are a very simple and cost-effective way to eliminate virtually all internal insurance tracking after a loan is closed," says Bill Jones, President of Golden Eagle Insurance, Inc. The Blanket 360 product covers all residen- tial and commercial real estate, commercial equipment and consumer collateral loans. In theory, the only remaining loans left to track for insurance would be those in a flood zone. Golden Eagle's blanket protections eliminate the negative interactions that can happen when a lender contacts a borrower about insurance lapses. Blanket Insurance mitigates uninsured risk and allows loan servicing de- partments to spend time on more important lending functions. Lenders also appreciate the benefits of blanket protections when they are no longer written up for insurance excep- tions by auditors and examiners." Examiners know that blanket coverage is superior to tracking and force-placing since the entire portfolio is covered without the need for ac- tion and chance for human error," says Jones. The Blanket 360 line immediately makes lenders more efficient, allowing them to grow without adding operations staff to deal with insurance tracking. The Blanket 360 product line includes Blanket Mortgage protection covering all residential and commercial real estate lending, Blanket Equipment protection which covers all commercial autos/trucks and equipment/inventory, and Blanket Single Interest (VSI) that protects the remaining consumer loan collateral. Golden Eagle Insurance is a national leader in developing these blanket programs. "Community banks have shared that with our blanket programs they can reallocate strong employees to other more productive roles within the lending operations. Bankers feel refreshed to eliminate that tracking," says Bri- an Ruhe, VP, Regional Business Development. Founded in 1995 by Bill Jones in Central Ohio, Golden Eagle Insurance is an innovator and specialist in lender portfolio protection and administrative relief. Golden Eagle Insurance has a focused its growth into Montana and the surrounding states and is excited to share its unique approach with community banks willing to consider a “change inmindset.” By Brian Ruhe, Golden Eagle Insurance