What is GAP?
The purpose of this program is to protect the lender's loan balance in the event a borrower's insurance fails to clear the balance after a total loss.
Many borrowers now expect not only 100% financing, but many other inclusions to the loan balance such as tag, tax warranties, etc. It is very common these days to have loans that are "upside down" as value relates to loan balance. Therefore, it is also very common for the insurance settlement check (which would be for the current value of the collateral) to be insufficient to clear the loan balance.
This is where GAP Protection is most valuable...it pays the difference between the insurance settlement and the loan balance. It will even pay the borrowers deductible up to $1,000.00. This is a winning situation for both the borrower and the lender.
We provide all the materials for this program, such as brochures for your borrowers. Furthermore, and certainly very important, in addition to the above advantages this product may also be used for fee income.
Please contact us for more detailed information.
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