Optional Credit Life or Mortgage Loan Insurance

Homium allows insurance policies that include optional coverage such as those outlined below. However, Homium does not pay costs arising from disputes with insurers in settling claims that relate only to this optional coverage.

Acceptable Types of Optional Credit Life or Mortgage Loan Insurance

Permissible coverage includes:

• single-premium credit insurance policies and debt cancellation agreements that are free in all respects to the borrower,

• single-premium mortgage insurance policies with a credit insurance feature where such credit insurance feature is free in all respects to the borrower, and

• credit insurance policies that require borrowers to pay a separately identified premium on a monthly or annual basis or debt cancellation agreements that require borrowers to pay a separately identified fee on a monthly basis.

These credit insurance policies or debt cancellation agreements must be disclosed to the borrower in clear and simple terms in advance of purchase of the applicable policy or agreement.

Unacceptable Types of Optional Credit Life or Mortgage Loan Insurance

Although certain property insurance policies that include optional coverage are allowed, Homium does not close and fund loans in the following situations:

• The premium/fee for single-premium credit life insurance policies or debt cancellation agreements is paid directly by the borrower or paid indirectly by financing the premium/fee into the loan amount.

• The premium/fee for single-premium mortgage insurance policies with a credit insurance feature is paid directly by the borrower or paid indirectly by rolling the credit insurance single premium into the cost of the mortgage insurance (whether or not it is identified as including a credit insurance premium).