The response of the market and current situation
In the car, CPI fix creditors their contract language to address the issue of disclosure that is in the past. In addition, market practices and supporting technologies car has evolved since the CPI 1980s. Currently, leading CPI providers have been providing an online tracking system that is updated in real time and used by service providers, borrowers and lenders to communicate and coordinate insurance-related issues. CPI providers also have implemented electronic data interchange (EDI) with the private insurance companies of the borrower, the point is to get the most current information about insurance is needed.
Because of the improvements made in the CPI administration car, car insurance interest CPI increased again in the early 2000s until now. In addition, there is another driving factor behind the growth in the CPI market cars that have exceeded the duration of the loan and the amount of financing is higher. For example, in 2014 the average new car loans long has reached 66 months, and the average amount financed for new vehicles was $27,612, up $964 from 2013. The longer the loan period will be higher and the amount financed, most likely a borrower will be in negative situations, or it could be "turned upside down". The borrowers also tend to fail in loan payments, thus resulting in more repossessions for lenders who then had to face the fact that damage is not insured on repossessed vehicles.
Mortgage protection insurance on controversy
Collateral Protection insurance on property mortgages, or better known as Mortgage Protection Insurance (MPI) has got a spotlight in the USA. After the financial crisis 2007-2008 and also experienced a rise in foreclosure, the lender bought the insurance placement "labor" or "lender" become more prominent.
Controversy has arisen regarding the price of insurance, as well as the difference in the ratio of losses, agency fees, and the relationship between banking institutions by insurance companies, which resulted in an investigation and settlement regulations in New York State in 2013, eventually Including Assurant and QBE, which together accounted for 90% gained from the market. Borrowers who fail to pay, or in many cases the mortgage owners such as Fannie Mae or Freddie Mac, ultimately pay the insurance.
In March 2013, the FHFA (which has a conservatory Fannie and Freddie) proposes to ban Commission payments by insurance companies to the bank that caters to hipoteknya, and in November 2013 FHFA forbade it, called it a "culture of repayment".
The Consumer Financial Protection Bureau (CFPB), New York's Department of Financial Services (DFS NY), continue to Collateral Protection Insurance researching it. FHFA, the CFPB, and these countries to review and make changes to the mortgage Protection and Regulation (MPI).
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