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Errors & Omissions Insurance for
MORTGAGE BANKERS & BROKERS

We have years of experience creating custom E&O policies from high-quality carriers.

 

Axis Insurance Services provides customized, comprehensive Errors & Omissions (E&O) insurance programs, and will help you make an informed decision on a policy that protects against the specific exposures faced by both mortgage bankers and brokers.

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Errors & Omissions Insurance Protects from Mistakes That Can Occur In all Servicing Operations

Mortgage Brokers Errors & Omissions (E&O) Liability Insurance provides comprehensive coverage for damages and defense expenses, including attorney’s fees, for covered claims relating to an act, error, or omission in your professional services — not just in specific areas of servicing, but also in origination, underwriting, processing, marketing, closing, warehousing and general servicing.

We insure Mortgage Brokers, Mortgage Bankers, Hard Money Lenders, Warehouse Lenders, Banks and Lending Institutions, and Lendings Funds.

Products we offer include Mortgage Brokers E&O, Mortgage Bankers E&O, Bankers Bonds, Commercial Crime Coverage, Mortgage E&O and Mortgage Impairment Insurance.

Coverage Options

Our years of expertise in the industry allow us direct access to high-quality insurance carriers, extremely competitive rates and the ability to customize an E&O policy specifically for you.

  • First Dollar Defense

  • Regulatory Defense Coverage

  • Escrow and Settlement Services

  • Independent Contractor Coverage

  • Related Party Services

  • Social Engineering Coverage

Errors & Omissions (E&O) Liability Insurance can provide coverage for your company in the event of a lawsuit brought against it for claiming negligence in providing or failing to provide your professional services. Below are the most common claim scenarios.

Failure to Properly Qualify a Lender Who Subsequently Was Delinquent

An individual was given a second mortgage on her home to pay off credit card debt. Within one year, the plaintiff was back in debt and could not pay the new credit card debt, the first or the second mortgage. After seeking the advice of a credit counselor (suggested by the mortgage broker), the Plaintiff sued because the mortgage broker should have known her history and that she would have been unable to pay. Payout of $27,000 plus legal fees.

Failure to Properly Advise a Client of Risks and Age Discrimination

A mortgage broker convinced an elderly couple to refinance a shopping center at a slightly higher fixed rate than they were currently paying because interest rates were on the rise. The client paid a locking fee of $300,000 on the mortgage and the loan was to be converted from non-recourse to a recourse loan. Family members halted the transaction and alleged bad faith and discrimination. Because of the amount of time that transpired in litigation (interest rates increased and a major tenant left) they were no longer able to refinance at a good rate. The potential loss was in excess of $5,000,000.

Failure to Properly Review Loan Documents

A mortgage broker obtained loan documents from a prospective lender. The documents, including bank statements and tax returns, were forged. The borrower defaulted and the bank alleged the mortgage broker was negligent by not validating bank statements and other documents provided. Given the drop in the market prices of real estate, this case has the potential of costing over $300,000 plus legal defense.

HOW TO SUBMIT AN APPLICATION

In order to submit an already completed application, please send the application and its supporting documentation.
Download Mortgage Bankers and Brokers Professional Liability Application

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