How to Find and Use the loanDepot Mortgagee Clause for Your Insurance Policy

If you have a mortgage with loanDepot, you are likely required to list them as a mortgagee on your home insurance policy. This ensures that in the event of a covered loss on the property, the insurance proceeds go to loanDepot to repair or rebuild the home.

Knowing the correct loanDepot mortgagee clause to provide your insurance agent ensures loanDepot’s interests as the lender are protected. Here’s what to know about finding and using the proper mortgagee clause for your loanDepot mortgage.

What is a Mortgagee Clause?

A mortgagee clause is a provision contained in a homeowner’s insurance policy that provides protection for the mortgage lender if there is damage to the home.

The clause names the lender as a payee on the policy. It states that any insurance claim payout will go to the lender, up to the remaining mortgage loan balance.

This protects the lender’s financial interest in the home if it is damaged or destroyed and secures the collateral for the mortgage Standard home insurance policies require adding the mortgagee clause

Why Do You Need a Mortgagee Clause?

There are a few key reasons mortgagee clauses are mandatory:

• Protects the lender’s interest – Ensures payouts to repair or rebuild go to the lender.

• Prevents loan default – Allows the lender to use claim funds to rebuild and avoid foreclosure if the home can’t be occupied

• Avoids delays – Claims are paid on time without waiting for homeowner approval

• Notifies lender of cancellations – Prevents lapses by ensuring the lender is alerted if the policy is canceled.

• Covers structural damage – Protects against foundational issues that can impact collateral value.

So it provides security for the lender while speeding up potential claim payments in the event disaster strikes.

How to Find the loanDepot Mortgagee Clause

To find the exact clause language required by loanDepot, check the following:

• Original mortgage documents – The mortgagee clause may be listed in the security instrument or deed of trust you signed at closing.

• Loan service portal – Many lenders provide the clause wording online when you register your account on their website.

• Loan statement – The mortgagee payee address is often listed on your monthly mortgage statements.

• Call loanDepot – Contact their customer service to request the required mortgagee clause.

• Lookup mortgagee lists – Clause wording is published on many mortgagee address directory sites.

The key details needed are loanDepot’s name, mailing address, and:

ISAOA/ATIMA

“ISAOA” stands for Its Successors and/or Assigns. This indicates that even if loanDepot sold your mortgage, the clause still applies to whatever entity currently holds the loan.

Adding the Mortgagee Clause to Your Policy

Follow these steps when getting a new policy or renewing coverage:

1. Provide your insurance agent the required loanDepot mortgagee clause, mailing address, and your loan number.

2. Verify the mortgagee clause wording is correct on your policy declarations page when issued.

3. Get a copy of the policy declarations showing loanDepot as the mortgagee to keep for your records.

4. Send a copy of your insurance policy showing the mortgagee clause to loanDepot. Their address will be on your loan documents.

5. Notify loanDepot anytime your insurance coverage changes.

Correctly naming loanDepot as the mortgage holder ensures insurance payouts protect their secured interest in your home. Make adding the clause a top priority when purchasing or renewing home insurance.

How Mortgagee Clauses Affect Claims Payouts

When you file a claim for home damage or loss, the mortgagee clause directs payment as follows:

• If the home is repairable, the insurance carrier will send funds to loanDepot. loanDepot will then release funds to you in installments as repair work is completed.

• If the home is a total loss, the payout up to the amount owed on the mortgage will go to loanDepot. Any remaining funds above the mortgage balance will be sent to you directly.

• For small claims below a set threshold, funds may be sent directly to you. Read your policy to see the claims process.

So loanDepot receives direct payment first, up to the amount required to satisfy the mortgage. This protects their financial interest.

What to Do if Your Mortgage Servicer Changes

One important scenario to watch out for is if loanDepot sells or transfers servicing of your mortgage to a new company. This is common in the mortgage industry.

If your servicer changes, follow these steps:

• Contact the new servicer to get the required mortgagee clause and address information.
• Update your home insurance policy with the new servicer’s mortgagee clause per their instructions.
• Provide a copy of the revised insurance policy to the new servicer.

It’s essential to update this information so claims are directed properly to whoever currently holds your mortgage. Don’t leave an outdated servicer listed on your policy.

Options for Home Insurance With loanDepot

You have choices when it comes to home insurance if you have a loan through loanDepot:

• You can keep your existing policy – Just call your agent to add loanDepot as mortgagee.

• You can change insurance providers – Get quotes to compare options, but provide the new carrier loanDepot’s clause.

• You may qualify for force-placed insurance – If you fail to maintain insurance, loanDepot will force-place a policy and add the premium to your monthly mortgage payment.

Force-placed insurance should be a last resort, as it provides minimal coverage at a high price. Maintaining continuous coverage yourself is best.

Ask loanDepot Servicing Any Questions

If you have any trouble finding the required mortgagee clause information, don’t hesitate to reach out to the loanDepot servicing department.

Their customer service team can provide the exact clause language and loanDepot address you or your insurance agent needs to list them properly on the policy.

It’s also wise to periodically verify with them that you have the current mortgagee details on file. This avoids any issues if your mortgage gets transferred.

Properly naming your mortgage servicer on the insurance policy ensures both their financial interests and your home are protected. Following loanDepot’s required mortgagee clause process prevents delays in getting claims paid out quickly when disaster strikes.