Mortgage Insurance – Predators?

As you may or may not know I refinanced my home recently. Even before the deal closed (you’ll recall it was delayed a few times) I began receiving solicitations for mortgage insurance.

To date I have received over 20 such solicitations. Heck, 2 more arrived just today.

I take issue, not so much with the idea of mortgage insurance itself – although if you are properly insured it really is not necessary – but rather the way that these solicitations present themselves.

Since I eventually just stopped opening the solicitations, many went straight to the recycling pile without further scrutiny, I cannot claim that those others were identical to EVERY ONE that I did open. But of those that I *did* take the time to read, they all presented themselves in such a manner as to try to make you think that this communication is from your bank and is somehow integrally involved in your mortgage dealings.

The one in front of me right now has a header that reads:

Urgent Notice – Complete and Return

And prominently in the portion that would normally contain a return address if it were a business letter it lists my lender as “SUNTRUST MTG INC.” in upper case and bolded.
It’s not until about halfway through the letter that they indicate the name of the actual insurer in normal font. And, except for the mice-type at the bottom where they list some additional riders and disclaimers they do not mention their name again.
They do not even mention the name of the insurer on the postage paid envelope. The address simply reads “Customer Service Department”.

I think it’s dirty pool, I’ve written about this before in reference to Budget Rent-a-car and others teaming up with Elite Excursions to trick folks into signing up for programs by sending folks checks with agreements printed on them in fine print.

I’m still gobsmacked at how many of these vultures come out of the woodwork to take advantage of an already terribly confusing process to prey on the unwary, the elderly and perhaps the just plain overwhelmed.

Shame on them all.

The following images I include as they are representative of what I have been receiving. I don’t mean to single out these companies any more than I would single out any of these other bottom feeders.

The only good thing I can say is that you at least you are not committed to actually paying premiums based on this solicitation.

Both Envelopes and the stub from American ClassicActual Letter from Americo
Both Envelopes from Americo

Posted under General, Opinions, Retail Experiences

This post was written by Marc
on April 9, 2009 at 8:20 pm

10,779 views

8 Comments so far

  1. Marc April 22, 2009 10:25 pm

    Just got another one today…

  2. Marc April 29, 2009 9:11 pm

    aaaand another one arrived today.

  3. Marc May 31, 2009 9:53 am

    And… another one from “The Hartford”. This one tells me that “This plan, which has been very successful, is provided by…” .

    Successful for whom I wonder?

  4. Marc June 23, 2009 2:22 pm

    And yet *another* one. This from “Superior Performers Inc.” This one assures me that I do not need a physical exam. Thank goodness for that!

  5. Mike Cummings September 6, 2013 11:07 am

    I agree with you on these “Insurance Products”. Since we purchased a new home last year, we get 1-2 of these offers per week. Today we received one market ATTENTION: IMPORTANT NOTICE. Like you, it went right to the shredder unopened. Thanks for your site, you are doing a great public service.

  6. jm October 3, 2013 2:54 pm

    Look at the postage area, it’s presort standard, aka junk mail class. If it was really important, it would be at least first class, never standard mail. It’s the first thing I check for, they don’t fool me. Mail back the envelopes as it costs them money.

  7. Tammy May 10, 2014 3:28 pm

    I just received from I believe a “predator” business, a form to fill out for THEIR coverage, yet as the “Benefits include: DEATH- YOUR FAMILY can pay off your mortgage in the event of your death.” Why FAMILY if I’m INSURED!?! Also CRITICAL ILLNESS- “Can be used to pay off your ..payments IF you are diagnosed w/a COVERED CRITICAL illness…” What is COVERED?, and if it is CRITICAL ILLNESS-and I die, then FAMILY has to pay off the mortgage! As for DISABILITY- “Can pay your monthly payments if you can’t work due to an injury”, then is a simple bruise counted?! The fine print reads: “NOT AFFILIATED WITH, AUTHORIZED BY OR ENDORSED BY ANY LENDING INSTITUTION. LOAN INFO OBTAINED FROM PUBLIC SOURCES AND NOT PROVIDED BY ANY LENDER.” (This SHOWS they are NOT with my company and this is a SCAM!)

  8. A Mirza October 12, 2017 12:59 pm

    I really, really hate these bottom feeding companies. I purchased a house in December 2015 and the moment the county recorded the deed, in came the solicitations masking as an urgent last chance or something bad will happen notice (although it is actually the first and only notice). I refinanced this month, and right after the closing…here they come again. What I do is tear up the notices keeping my name and address intact, fill up the return envelope and send it back on their dime.

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