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Home Equity Protection Plan

New Opportunities in Brokering Home Equity Protection Plan

IRESE offers new opportunities to earn commissions for mortgage bankers, mortgage brokers, real estate agents and brokers, and financial advisers. When you broker Home Equity Protection Plan underwritten through IRESE, you earn commissions at origination and on renewals.

Real estate markets in turmoil

Homeowners are continue to wonder what is going to happen to the value of their home? More than 100 million American households make this dinner conversation every week.

With IRESE real estate property value is protected

IRESE offers Home Equity Protection Plan to protect your client's home equity.

Consider these reasons to broker this insurance:
  • Homeowner plans to refinance the mortgage in 5 years and worry that the value of the home will fall below the mortgage principal;
  • Homeowner plans to sell in 7 years and needs to preserve the down payment and protect the equity made in their home.

You earn commissions at origination and on renewals

When you originate Home Equity Protection Plan at IRESE, you earn commissions at origination. For example, if the cost is $5,000, your commission is up to 10% depending on the volume, and at 10% is $500. When Home Equity Protection Plan is renewed, your commission is up to 5% and if the cost is $6,000, your commission is $300.

Homeowner exposure to real estate market price fluctuation is minimized with Home Equity Protection Plan.

How does Home Equity Protection Plan work?

Property Owner Motivation

As an example, let us take a homeowner who lives in La Jolla, CA and the current property value of his or her home is $1 million, from the last sale date and sale price of the property.

Further, the homeowner is afraid that the property value of the home in 5 years might decline below $0.8 million and he wants to protect home equity decline below $0.8 million.

Homeowner would purchase Home Equity Protection Plan to protect home equity decline below $0.8 million.

Home Equity Protection Plan

Through an IRESE Broker, the homeowner purchases a Home Equity Protection Plan for a specific term of 5 years, with an equity protection value of $0.8 million. Property Owner can get a free quote online. In our example, the homeowner would pay $4,062 today to protect home equity below $0.8 million.

Property Owner Payoff

During the next 5 years, anytime the homeowner needs to sell or refinance the property, Home Equity Protection Plan would cover the loss below $0.8 million. The plan payoff is based on the observed value of the property, which is determined from publicly available price index data.  Learn how property value is determined. If the observed value is below $0.8 million, the homeowner gets the difference between $0.8 million and the observed value. In our example, if the value is $0.6m, the homeowner receives $0.2m ($0.8 less $0.6).

Home Equity Protection Plan protects against broad property market price declines that is beyond the control of property owners.

Download Brochure

Learn more about Home Equity Protection Plan from Property Owner perspective.

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