IMGC follows the below five-step process ranging from onboarding to claim filing-
1
Due Diligence
Due diligence of the lender portfolio, credit policies, underwriting & collection process.
2
Lender Requirement Review
Assess lender requirements like exploring new markets, cover on an existing book, securitization, etc. & suggest/ create the most suitable product available.
3
Pricing Proposal
Create detailed proposal basis requirements with pricing.
4
Underwriting
Portfolio Cover (Bulk)
- The appraisal includes validation of borrower details, credit scores, property valuation, and LTVs, among others. It is done on a contract basis or a sample basis. The appraisal includes validation of borrower details, credit scores, property valuation, and LTVs, among others.
- Lender & IMGC sign the mortgage guarantee agreement governing the business relationship.
- The mortgage guarantee fee is borne by the lender.
Retail Product (Flow)
- Lender & IMGC sign the master policy which governs the business requirements and sets forth the requirements for both parties
- IMGC sets norms & data requirements. Contracts meeting IMGC’s internal credit screens are approved for mortgage guarantee
- IMGC to appraise the loans based on credit norms set forth by the master agreement.
- The mortgage guarantee fee is usually built into the emi of the borrower
5
Payment of Claims
- The lender files a claim 90 days after the EMI is overdue or the account turns NPA.
- IMGC checks for compliance at the lender’s end concerning the collection procedures & documentation of the customer.
- Once the claim is approved, IMGC will repay the EMIs of the housing loan until the earlier of the two below-
It provides the backing of a mortgage guarantee on each loan along with a complete financial appraisal.
- Settlement of the incurred loss before disposing of the property; Or
- The amount of EMIs paid equals the maximum amount of coverage agreed upon under the mortgage guarantee agreement.