How does the premium payment and return premium work with REO Builders Risk?
REO Builders Risk is an automated system that allows the lender to order coverage online and to print Certificates of Property Coverage for each property insured. When a foreclosed home is submitted for coverage, the full 6 month premium charge is added to the lenders monthly statement. At the end of each month the lender receives an emailed statement for all the foreclosed property insured during the month. The lender is given 10 days to review the statement and to contact us with any discrepancies. On the 11th day of each month we withdraw the total premiums for the prior months statement from a designated account at the insured bank. When insured homes are sold, the lender uses the same online system to cancel REO Builders Risk coverage on that loan. We scan our database of insured properties 3 times each month to identify which homes have been cancelled since the last scan. Premiums are earned for each month or portion of a month that the foreclosed property was insured. The unearn
