Commission Commotion
Our industry is currently in the midst of some major shifts in the way business is conducted .
These changes , largely driven by regulatory bodies including the CFPB , FHFA and State Departments of Financial Services , on the whole have at their center the best interests of borrowers . Commission payments on lender placed insurance policies are at the center of much of the most recent activity , particularly in the State of New York .
Changes on the near horizon resulting from recent settlement agreements in the State of New York include cessation of commissions paid to lenders or lender owned agencies on lender placed insurance policies , limits on re-insurance activities , and eliminating subsidization of additional service fees such as insurance tracking with lender placed insurance premiums .
Early in May some of the largest insurance carriers were hit with substantial fines in addition to the operational limitations mentioned above . All of this further led to discussions that lenders themselves may be the next regulatory target . While that has yet to materialize , the State of New York actions did later extend to additional insurance carriers who make up a much smaller percentage of the overall lender placed insurance market .
The current settlement actions out of the State of New York do not apply to or have any negative implications for van Wagenen . They do not endanger the stability of our carriers or validity of policies provided by the insurers we use .
We are staying very close to these issues and participating in the industry-wide dialogue , helping to mold a more competitive landscape that benefits both our clients and consumers . Our commitment to protecting the reputations of our lender clients has brought about proactive discontinuation of the aforementioned commission payments . As a service provider we have always been and will continue to be vigilant in keeping costs under control so that rates and fees are fair and reasonable even without subsidization .
Events
We invite you to come and visit us at any of the events below . To schedule a meeting in advance , contact us at 1-800-437-5171 or sales @ vanwagenen . com . We look forward to seeing you !
June 18 , 11:00 am ( CST ) Auto Lender Webinar covering the complete suite of van Wagenen products
June 19 , 11:00 am ( CST ) Mortgage Lenders and Servicers covering the complete suite of van Wagenen products and services
June 24-27 , 2013 NIADA Convention and Expo Las Vegas , NV www . niada . com / convention . php
July 9-13 NAFCU 46th Annual Conference and Solutions Expo Boston , MA www . nafcu-annual . org / index . html
September 15-17 2013 ACVL Annual Conference Austin , TX www . acvlonline . com page 3