Value Proposition

At no cost to you, First Loss Guarantee (FLG) provides:

  1. Network Oversight and Compliance
  2. Standardized Broker Selection
  3. Seamless Integration
  4. Aligned Interests

Broker Selection and Training

  • Standardized, Comprehensive Broker Selection Process

  • Verification of Information Provided

  • Initial and Ongoing Training (customization available)

  • Minimum Experience Required

  • Background Checks with Customizable Screenings

  • Verification and Cross Check of License Status and Insurance Information

Regulatory Environment

FLG protects your interests by holding ourselves and our third parties to the CFPB’s service provider requirements.

CFPB bulletin 2016-02 – “CFPB expects supervised banks and nonbanks to have an effective process for managing the risks of service provider relationships….”

Required Elements of Compliance Management Programs

  • Conduct a thorough due diligence over all providers.
  • Establish clear expectations about compliance and enforceable consequences.
  • Take prompt action to address any problems.

Compliance Management and Oversight

First Loss Guarantee maintains the highest standards.

Vendor Compliance and Oversight Technology

  • Automated background checks with customizable screening.
  • Maintenance and tracking of licenses, insurance certificates, and adherence to policies and procedures.
  • Audit trail of all compliance activities and transparency to agent and broker monitoring.

Regulatory Monitoring

At First Loss Guarantee, we understand that it is not enough to do the minimum to meet regulatory requirements so we go above and beyond to protect your interest by holding ourselves and third parties to the highest standards.

  • On-going monitoring of regulatory landscape, ensuring compliance with applicable regulations.
  • Agents tested periodically on regulatory changes and updates.

Alignment of Interests

We align our interests with asset owners by participating in losses associated with HUD Appraisal Based Claims (ABCs). Our efforts will immediately lower losses associated with ABCs.

  1. Share in Losses

  2. Lower Costs

  3. Aggressive Marketing to Minimize ABC Claims

  4. Easy Integration

  5. Extensive 90 Day Marketing Review

Details of Alignment of Interests

Our efforts will immediately lower losses associated with Appraisal Based Claims.

First Loss Guarantee –

  1. Covers a percentage of post 180 day ABC claim losses.

  2. Provides a high per asset maximum guarantee on post 180 day ABC losses.

  3. Offers a large total monthly reimbursement on post 180 day ABC losses.

The FLG Difference

First Loss Guarantee is the no-cost solution to maximizing asset managers performance in a compliant and efficient manner.

1. Oversight/Compliance

  • Manage task deadlines
  • Compliance oversight
  • Meet performance expectations
  • Follow Client property specific guidelines
  • Monitor and review BPOs, MLS listings, and sales contracts for quality assurance
  • Intensive transaction management for every property by experienced transaction managers

2. Experience

  • Extensive experience working with reverse mortgage clientele
  • Listed and sold over 10,000 HECM properties
  • Use of all major realtor networks including several top 100 REO Agents
  • Nationwide service area
  • HECM asset management experience
  • HECM closing/curative management experience

3. Broker Selection/Training

  • REO experience required
  • Background checks
  • Verification of license status with state regulatory agency
  • Multi-point training

4. Results

  • Lower losses associated with ABCs
  • Over 10,000 HECM properties closed
  • Increases asset management capacity for greater efficiency
  • Compliant well-trained network