BIRMINGHAM, Ala., and TALLAHASSEE, Fla. (2/4/15)--LEVERAGE, an affiliate of the League of Southeastern Credit Unions (LSCU), has launched the Equity Protection Program (EPP) in Alabama, Florida and other regional markets.
The Equity Protection Program is designed to offer credit unions a way to safely promote loan growth without increasing their risk. Participating credit unions are insured for losses due to borrower default for any reason such as job loss, divorce, bankruptcy and death.
Closed-end home-equity loans, home-equity lines of credit, 80/20 second-mortgage purchase money loans and home improvement loans are eligible for coverage.
"As the economy improves, more consumers are looking to upgrade their homes through purchases or remodeling," said Patrick La Pine, president/CEO of LEVERAGE and LSCU. "The Equity Protection Program will be beneficial to credit unions that have a large portfolio of second mortgages or for those that are looking to enter the second mortgage market."
The Equity Protection Program is a fully insured loan protection program backed by an A.M. Best "A" rated insurer. The program allows credit unions flexibility in designing loan programs and underwriting individual loans. Significant emphasis is placed on responding to the individual underwriting concerns for each loan, as well as simplified reporting and premium remittance procedures.