Addressing Challenges, Seizing Opportunities

Compliance You Can Trust, Transparency You Can See Balancing risk management and regulatory compliance while maintaining strong borrower relationships is no easy task. At State National, we understand the weight of this responsibility. Protecting your financial institution, your borrowers, and your reputation is at the core of our work. That’s why our mission is to deliver industry-leading portfolio protection solutions anchored by innovative technology, unmatched transparency, and steadfast reliability. How State National Ensures CPI Compliance At State National, compliance isn’t just a priority, it’s built into everything we do. We know lenders face mounting challenges, including economic uncertainty and heightened regulatory scrutiny. That’s why we’ve developed a comprehensive approach that goes far beyond checklists; it’s about operating with integrity and ensuring our programs exceed regulatory and operational expectations. Industry Expertise You Can Rely On Regulatory Expertise: Our skilled team actively monitors federal and state-level mandates to ensure your program remains compliant. Whether it’s evolving regulations or precise documentation requirements, we’ve got you covered. In-House Compliance Department: Our on-site team employs strict, measurable quality control processes. Proactive Adherence: This same dedicated team manages over 50,000 regulatory filings annually, helping you stay ahead of federal and state mandates, including guidance on NCUA, CFPB, and other key industry regulations. Comprehensive Audits: Our meticulous audits and legal reviews ensure your institution is prepared not just for current regulations but also for future challenges. Proven Reliability: State National achieved the prestigious 'A' (Excellent) rating from AM Best the very first year we were eligible, and we have held that rating for 30+ consecutive years — a testament to our exceptional financial strength and dependability. Future-Forward Research: We actively collaborate with industry organizations and regulatory bodies to anticipate and adapt to upcoming compliance changes, ensuring you and your organization are always ahead of the curve. Comprehensive Risk Management Our industry-best risk management services go above and beyond to protect your institution, ensuring compliance every step of the way. From data security to borrower communication, we incorporate rigorous measures, including bulletproof audit trails and prevention-focused processes, to safeguard against potential missteps. Accurate, prevention-first approach reduces unnecessary borrower touches. Focused portfolio protection expertise with decades of specialized experience. Complete audit trails for ongoing compliance visibility. Proper licensing for all State National claims adjusters to ensure claims are always handled in accordance with required regulations. Ongoing annual training for all relevant employees on the proper handling of PII, Fair Claims Handling, best practices for data security and controls — phishing, quishing, physical security both in and out of office, and more. Borrower submission of insurance information directly to us minimizes the risk of lost documentation. As the only dedicated portfolio protection provider that is also the underwriter, we don't act as a broker like other providers do — we are able to streamline communication and eliminate unnecessary handoffs and information sharing. Taking the Extra Step at Every Step Because every state department of insurance operates differently, we've also gone above and beyond to meet each state's unique regulatory standards. We create state-specific notices tailored to these requirements, and also carefully develop all of our borrower notice cycles to align with each state's precise notification guidelines. Advanced Technology Tools for Simplified Compliance Solutions Staying compliant in a rapidly changing financial environment requires advanced tools and forward-thinking innovation. That’s why State National integrates advanced technology into every facet of portfolio protection, designed to simplify compliance while improving efficiency and control. Our proactive approach ensures that the vast majority of insurance updates — about 79% — are handled completely behind the scenes, with no lender or borrower involvement. We employ extensive automation to maximize accuracy and efficiency, including our well-established EDI process, cutting-edge AI tools including insurance search and verification technology, Intelligent Document Processing (IDP), automated text and email notifications, and more. What Does Technology Have To Do With Compliance? Because of the unprecedented speed and accuracy of these automation efficiencies, our fast, effective, low-touch resolution reduces the risk of uninsured borrowers while enhancing operational precision. With 97.5% of borrower insurance issues completely resolved prior to any certificate placement, your institution avoids the compliance pitfalls that come with false placements. The InsurTrak Advantage In addition, our proprietary InsurTrak platform simplifies insurance tracking and reporting, giving you the tools needed for real-time program oversight, clear audit trails, and automated accuracy to prepare for any internal or external review. InsurTrak also automates payment changes, adds, and refunds, heightening speed and accuracy and avoiding the slowdowns and errors that come with manual processing. InsurTrak’s transparency is unmatched by any other insurance tracking platform — you can see real-time borrower data and a complete borrower history, see any communication including chat logs, and even listen to recorded borrower calls on-demand, right in the system. All of the information you need is at your fingertips — you are never in the dark. Proven Reliability Through Experience Over more than five decades, we’ve built a legacy of reliability, with a commitment to providing consistent excellence. From our implementation team that draws on years of expertise to make every transition seamless, to our highly responsive dedicated Client Executives and Account Reps who know your individual program inside and out, we do everything we can to ensure every partnership is successful. When you work with State National, you gain more than just a portfolio protection provider; you gain a partner whose focus is safeguarding your institution’s long-term success.

Community, Care, and Connection: SNCares Year in Review From grants to giving hands, here are some of the ways we made a difference in 2024 At State National, giving back isn’t just something we do — it’s part of who we are. That’s one of the reasons we created SNCares, a companywide committee dedicated to service and philanthropy. Over the past year, we’ve had the privilege of partnering with dedicated organizations and contributing to meaningful causes that uplift our communities. From grants and donations to hands-on volunteering, our dedicated team members embraced hundreds of opportunities to make an impact. The stories shared here are just a glimpse of the meaningful work we accomplished together, both as individuals and as a company, throughout the year. We hope you enjoy this snapshot of the many ways we came together in 2024 to make a difference and help create a brighter future for those around us!