Deciding how to safeguard your credit union’s loan portfolio can seem like a complicated decision. In the midst of all the other duties and responsibilities of running your business, it can be tempting to go with the option that seems easiest on the surface. However, as with most things in life, there’s a lot more underneath it all than meets the eye.
Many factors in favor of a tracked collateral protection insurance program aren’t immediately obvious and can be all-too-easily overlooked—until a lender that chooses another kind of portfolio protection discovers the unintended (and potentially unpleasant and expensive) consequences that can often happen with self-insurance or blanket coverage and a lack of member insurance tracking.
Why a Tracked Portfolio Protection Program Is Better for Credit Unions
Lack of member insurance tracking has some side effects that aren’t always obvious at first glance. Here are some of the risks of a non-tracked program:
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