Introducing Down Payment Protection
Noise
Negative news dominates consumers
Economists are just beginning to report on a looming market correction, but consumers have seen this coming for a while. While the industry scrambles in a race to the bottom with cost-and rate-cuts, consumers simply want confidence and reassurance they can buy now.
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The Evolution of Homeowner Protection Finally able to reduce financial risk of homeownership Home Warranty
Down Payment Protection
Protects Appliance and Systems. Warranty contract introduced by American Home Shield
1950
By Down Payment Protection issued by Houston International Insurance (AM Best A) & reinsured by Everest Reinsurance (AM Best A+)
1995
1971 Homeowners Insurance
Insures the Dwelling. Various forms existed during the 1940’s in Europe & United States Š 2018 Down Payment Protection
2014 Mechanical Breakdown Insures Appliance & Systems. Introduced by AIG
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What is Down Payment Protection? Traditional Homeowner’s or Mortgage Insurance Policies protect the creditors from risk of loss. Only Down Payment Protection (DPP) affords the same protection to homeowners by insuring the purchase equity against risk of loss due to a sale in a down real estate market. ü ü ü ü ü ü
Single-premium – a part of the monthly mortgage payment Complete protection that homebuyers need and want Is affordable, easily understood, and transparent First product to protect buyers’ home equity, not just 4 walls Flips the script on typical buyer-paid insurance – now it actually does protect the homeowner! Creates loyalty – move beyond rates or promotions deliver something of value
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Down Payment Protection Coverage Elements
Reimburses homeowner’s down payment when selling in a declining market.
Maximum Coverage
Single Premium included in closing costs Purchase of new and existing owner-occupied, single-family dwellings and condominiums Lesser of 20% of the purchase price, or $200,000 whichever is less
Coverage Period
One year waiting period with coverage expiration after 10th year
Premium Coverage Availability
Claim Trigger Claim Amount Claim process Exclusions Insurance Structure © 2018 Down Payment Protection
“Qualified sale” where the sale price and residential price index are lower than the purchase price Lesser of homeowner equity; actual loss; FHFA HPI index loss Paid directly to homeowner within 30 days; or paid to homeowner and servicer/lender to facilitate a sale pursuant to insured’s instructions Foreclosures, War or Terrorism, Condemnation, Destruction or Damage to the Property, Judicial Sale, and Eminent Domain Underwritten by HIIG and reinsured by Everest Re, rated A and A+ A.M. Best, respectively 5
How it Works For homebuyers, Down Payment Protection gives them the financial security of knowing their down payment is insured against market price declines, giving them the flexibility to pick up and move whenever they need.
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Delivering Down Payment Protection at every step You have the unique structure that can present Down Payment Protection at each step of the buyer’s journey:
2. Insurance agents can use to nurture and eliminate buyer’s remorse 3. Loan Officers can use to avoid rate shoppers and ensure timely closing
© 2018 Down Payment Protection
Insurance Agents
1. Realtors can use to acquire buyers and tame cold feet
Lo an Of fice rs
ors t l a Re
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How it works for you? Differentiates and promotes your listings DOWN PAYMENT PROTECTED! Find a RE/MAX home with included down payment protection and buy with confidence. Only with RE/MAX.
BUY YOUR HOME WITH CONFIDENCE!
Down Payment Protected! Learn More
Find a RE/MAX home with included down payment protection included
LEARN MORE
© 2018 Down Payment Protection
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How it works for you? Differentiates and promotes your listings DOWN PAYMENT PROTECTED! Find a RE/MAX home with included down payment protection and buy with confidence. Only with RE/MAX.
DOWN PAYMENT PROTECTED!
Find a RE/MAX home with included down payment protection and buy with confidence. Only with RE/MAX.
Down Payment Protected! Learn More
BUY YOUR HOME WITH CONFIDENCE! Find a RE/MAX home with included down payment protection included
LEARN MORE
Down Payment Protected! Learn More
BUY YOUR HOM E W ITH CONFIDENCE! Find a RE/MAX home with included down payment protection included LEARN MORE
© 2018 Down Payment Protection
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Direct the value wherever possible Your Listings with down payment protection DOWN PAYMENT PROTECTED! Find a RE/MAX home with included down payment protection and buy with confidence. Only with RE/MAX.
E x c lu siv e o ffe r: B u y th is h o m e w ith c o n fid e n c e ! T h is R E /M A X listin g in c lu d e s e x c lu siv e d o w n p a y m e n t p ro te c tio n th a t p ro te c ts y o u r d o w n p a y m e n t if y o u h a v e to se ll a t a lo ss in a fu tu re d o w n m a rk e t. L e a rn m o re a b o u t R E /M A X w ith d o w n p a y m e n t p ro te c tio n .
Exclusive offer: Buy this home with confidence! This RE/MAX listing includes exclusive down payment protection that protects your down payment if you have to sell at a loss in a future down market. Learn more about RE/MAX with down payment protection.
Š 2018 Down Payment Protection
Direct the value wherever possible You with Down Payment Protection
BUY THIS HOM E W ITH CONFIDENCE! This RE/MAX home includes down payment protection! LEARN MORE
© 2018 Down Payment Protection
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Beyond digital promotion Billboards and media outreach DOWN PAYMENT PROTECTED! Buy with confidence. Only with RE/MAX.
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Beyond digital promotion Yard Listings
DOWN PAYMENT PROTECTED
DOW N PAYM ENT PROTECTED
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Please send any Question or Inquires to Down Payment Protection Tom Gunderman (317) 634-4863 Quote@downpaymentprotection.net www.DownPaymentProtection.net
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