VIP Insurance Requirements

VIP Homeowner’s Insurance Requirements

 Borrower Information
  • All borrowers’ names match final 1003 (including suffix if applicable):
    • Middle initial may differ.
  • Name Examples:
    • 1003 shows Michael Smith, Insurance shows Mike Smith. We need insurance updated to show Michael.
    • 1003 shows Michael D. Smith, Insurance shows Michael Smith. We don’t need insurance updated.
  • All borrowers must appear on the policy.
    • May have additional insured, if applicable (e.g., non-borrowing spouse).
    • The name of the insured can be listed in any order, but must include our borrower(s) name.
Policy Information
  • Policy Number: Required, no quotes allowed.
  • Effective dates, Purchases must be on or before the funding date of the same month.
    • Policy period must extend at least 12 months from date of closing.
  • Effective dates, Refinances: Need at least 60 days remaining after the note (signing) date. If not, do one of the following:
    • Renewal policy and collect the new premium at closing.
    • Or collect current premium at closing.
  • Premium payment: We cannot assume the premium is paid in full.
    • We need one of the following:
    • Evidence paid in full.
    • Unpaid invoice or amount to collect at closing.
  • Escrows Waived: Need written proof that account is paid current with no lates.
  • Subject Property Address must match the 1003 and USPS.
  • Primary Refinance Address: Mailing and subject addresses must match.
Mortgagee Clause
  • All branches must show corporate address:
    • 4900 N. Scottsdale Rd. Ste. 6000
    • Scottsdale, AZ 85251
  • Mortgagee name: Standard: V.I.P. Mortgage, Inc., ISAOA
  • Texas and California must use V.I.P. Independent Mortgage, Inc., ISAOA
  • V.I.P. Loan Number must be listed on evidence.
Coverage Information
  • Must indicate it’s for dwelling, building or property
    • Personal property cannot be included in dwelling coverage amount
    • “Other Structures” can be included in the total dwelling coverage amount
  • Must have sufficient coverage that meets one of the following:
    • Loan amount
    • Cost to build new (see appraisal page 3 “Total Estimate of Cost-New”
    • No appraisal loans = use current home value and subtract the assessed land value (from tax cert)
    • Policy or remarks must indicate “replacement cost coverage”. May be listed in the body of
    • the policy, fax cover sheet, additional detail page, or other correspondence directly from insurance company.
  • Investment properties – Need at least 6 months of rent loss or needs to include “landlords” verbiage
Deductible Information
  • All loans (except specialty programs) – Max deductible is 5% of dwelling coverage
  • Specialty program (e.g., DPA, Bond or CHFA) – Max deductible is the lesser of 1% of the policy or $1,000.
  • Misc. Coverage – Hurricane insurance
  • This is elective or optional to our insured.
  • Most often seen with Hawaii loans
  • No dwelling coverage requirements
Miscellaneous Coverage – Hurricane Insurance
  • This is elective or optional to our insured.
    • Most often seen with Hawaii loans
    • No dwelling coverage requirements

V.I.P. Mortgage, Inc. does not discriminate in any aspect of a credit transaction on the basis of sex, marital status, race, religion, national origin, age, income derived from public assistance, or the good faith exercise of rights under the Consumer Credit Protection Act.