Cover losses to your mortgaged properties that are not covered by the Errors & Omissions Section of
a Mortgage Bankers Bond. This coverage can cover damages if
your firm is servicing loans on an
ex-checking basis or is a portfolio lender who does not escrow
for insurance or taxes. Additionally, as an investor who outsources
the insurance responsibility to others, this provides you
with contingent protection on those loans.
Protect your mortgagee or owner interest in under-insured
or un-insured properties against physical damage losses as
a result of "required" perils—even if you
service loans on an ex-checking basis.
Errors and Omissions*
Protect yourself from liability due to accidental
failure to maintain required coverages or guarantees on mortgaged
Portfolio lenders and certain
servicers can avoid costly losses due to catastrophic physical
damage from perils that may not be “required,” such
as earthquake, tidal wave, mudslide, and even flood in excess
of the limits provided by the Flood Disaster Protection Act,
*Coverages required by lenders who originate or service loans for Freddie Mac, Fannie Mae, and Ginnie Mae. Many private investors and some warehouse and wholesale lenders also require these coverages.