Axis Insurance Services provides customized, comprehensive professional, management and cyber liability 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.
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.
TYPES OF COMPANIES WE INSURE:
- Mortgage Brokers
- Mortgage Bankers
- Hard Money Lenders
- Warehouse Lenders
- Banks & Lending Institutions
- Lending Funds
PRODUCTS WE OFFER INCLUDE:
- Mortgage Brokers E&O
- Mortgage Bankers E&O
- Bankers Bonds
- Commercial Crime Coverage
- Mortgage E&O
- Mortgage Impairment Insurance
Coverage Options
Axis Insurance Services has years of expertise in the industry that 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
E&O Guide
Mortgage Brokers E&O can provide coverage for damages and defense expenses, including attorney’s fees, for covered claims relating to an act, error, or omission in your professional services. Policies can also include costs arising from litigation, settlements, and time lost from work. Learn more from the experts at Axis Insurance.
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The Coverage of Professional Liability Insurance for Mortgage Bankers and Brokers
High defense fees and legal fees could easily cripple a company without mortgage bankers or brokers professional liability insurance. Here’s a look at the most important forms of coverage needed, as well as mortgage broker insurance requirements.
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Mortgage Broker Errors That Can Lead to Lawsuits
The mortgage lending process is complicated, from pre-qualifying to estimating a loan to underwriting and closing. This complex process creates opportunities for error, and for legal action to ensue. Here are some of the more common errors that can lead to complaints brought against the lender.
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To learn more about our Wholesale Insurance Resource for Professional & Management Liability visit PLRisk.com
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