Lenders are now able to fund loans prior to receiving the Title with the Lender as the lien holders.

We can remove your title work headaches by being your title clerk and insuring against any errors.

One of the largest challenges that face Lenders when they decide to enter into or expand the indirect lending business with Dealers is obtaining a timely lien receipt via the completion of the Title and Registration transaction. Dealers constantly deal with the issue of timely funding by the Lender; especially when the dealer has elected to start utilizing a new indirect lender that they have not dealt with in the past.

The Goal for the Dealer and Lender

The goal for the Dealer and Lender is funding the loan to the Dealer as quickly as possible. The loan must be funded within the legal requirements of each state, which is either 20 or 30 days from the Sale Date of the Vehicle.

The Title Errors and Omissions Insurance was developed to solve all of these issues and more for the Lender and Dealer. The Lender can now fund a loan with on Title issuance. This program is insured by Certain Underwriters at Lloyd’s of London. Dealers are intimately familiar with the various laws and regulations in their states, and have the experience to execute the perfection of the Title and Lien Registration transaction.

The insurance policy indemnifies the insured during the Policy Period against losses occurring by reason of the unintentional failure to perfect the Security Interest of Lien where such failure prevents the insured from:

  • Obtaining possession of a vehicle represented by such loan; or
  • Retaining the proceeds thereof’; or
  • Enforcing the rights under such loan

Solely because the Dealership or Dealership Personnel or a Public Office or Officer has accidentally and/or unintentionally failed to properly record or otherwise perfect your lien on a security instrument or a Certificate of Title.

 Information received from the Dealer is compared to the information received from the Lender by our proprietary software system and administrative personnel that validates this information and issues a Confirmation of Coverage document. The Confirmation of Coverage document is created by the software, date and time stamped, for each individual loan. The information is provided electronically via the internet form the lender which means the Lender gives the dealer more control over how quickly the funding occurs. The Confirmation of Coverage is delivered to the Lender via email and posted to a special website that the Lender can view at any time. The Lender may also go to the Lenders website to print additional copies at any time. In addition, the website provides a Status of each Loan relative to the Title Validation  process.

Our goal is to process the Title paperwork information received from the Dealer almost immediately and guarantee to review the paperwork within one (1) business day. The Lender may go to the same website to see the Status of each Loan as it relates to the Status of the Title Paperwork. The Lender is notified, via email, with a Confirmation of Coverage which is date and time stamped.

The coverage limit is equal to the lesser of the amount financed or $40,000. Insurance policy has a $0 deductible. There is no aggregate limit. This means that there is an unlimited amount of claims that can be paid.

The coverage period of four (4) months from the time and date stamp of the Confirmation of Coverage is longer than the time it should take for an actual Title to be issued by each state. We recommend that our Lender clients submit a claim if the Title has not been received by the Lender prior to the end of four (4) months from the Sale Date of the vehicle so that the Lender does not have a claim denied due to the coverage period.

Independent and Franchised Dealers are eligible for coverage. The total cost of the coverage to the Lender is the same for all Loans funded by the Lender to Independent and Franchised Dealers.

Contact Today & Join the PAC Family ! 800-PAC-0767

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