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Several years ago Fidelity National Title Group introduced "UCCPlus Insurance" to the commercial lending and legal communities. Essentially, we re-positioned an ALTA title insurance product, designed to insure ownership of land or the chain of title to real property, and adapted it to the non-real estate markets to provide a new title insurance product that would insure the lender's security interest in non-real estate collateral.
Since introduction of the concept of UCC insurance, the title industry has produced approximately $475 Billion in UCC policies, primarily leveraging the mezzanine loan market segment for a successful product launch. FNTG offices originating sales opportunities participate in both a new revenue stream while at the same time enjoying the benefit of a powerful cross-marketing tool.
Most major commercial real estate transactions have a mezzanine component built into the capital structure, that can be insured by FNTG's UCCPlus Mezzanine Insurance Program, simultaneous to the issuing of a core commercial real estate title insurance product for the senior debt. A mezzanine loan is a loan product offered by many well known lenders and investor groups, that is secured by the ownership interest or the equity interest in the entity that owns the entity that owns a
Fidelity National Financial's UCCPlus Risk Management Program was designed to provide lien priority and collateral protection for secured creditors, and as a credit enhancement for asset-based commercial loans secured by Article 8 and Article 9 collateral. As such, it is positioned to reduce operational risk, to minimize internal loan loss reserves, and, accordingly, regulatory capital requirements. The intended result is enhanced credit quality, and improved bank liquidity, operating margins and transaction transparency.
UCCPlus insures the lender's security interest in commercial loans and loan portfolios for validity, enforceability, attachment, perfection and priority, Policies protect against fraud, forgery, documentation defects and search office errors & omissions. UCCPlus includes UCC search & filing functions, and provides for cost-of-defense in the event of a third party challenge to the insured lender's lien priority. National insurance coverage essentially replaces costly, traditional legal opinions, which are expensive and heavy with exceptions and characterizations,
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