Does your due diligence include confirming Insurance coverage?

[Sandy Uhlmann]

In purchasing a first position note, do most people verify insurance coverage prior to purchasing the note or do you wait until after the note is purchased and deal with it then? 

What is the best way to verify coverage?  Even if you have the name of the insurance carrier, most Insurance companies require prior authorization before they will give you information.   

[Bob Malecki]

Not really. You can ask the seller of the note to provide you a copy of the insurance docs, but basically you can wait until you take assignment then reach out to the borrower for confirmation of insurance. There is a formal letter process required by CFPB, your servicer can guide you on this. Its not a good idea to contact the insurer until after you take ownership and record your assignment. 

Bob