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The Proctor Perspective | Agency Relations

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E&O Insurance for Mortgage Bankers

Monica Sachdev Monica Sachdev , 8/25/2016
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Protects the lender's interest from lack of direct insurance and provides E & O coverage for mistakes that can occur in the day-to-day origination and servicing of residential and commercial real estate loans.

  • Safety net for Fire, EC, and VMM contingent insurance
  • Physical damage and errors & omissions are included
  • Options that are in compliance with Fannie Mae, Freddie Mac, and Ginnie Mae regulations
  • Options to streamline the verification process of borrower insurance
Coverage can take effect when
  • Lack of direct insurance coverage with physical damage to property
  • Errors in timely lender-placement is missed due to cancellation of borrower insurance policy
  • Failure to pay real estate taxes on behalf of the borrower
  • Mistake occurs in determination of flood zone properties resulting in absence of flood insurance
Extensive coverage options available
  • Physical Damage: property suffers a loss from required perils; includes flood insurance when necessary
  • Errors & Omissions: failure to pay borrowers homeowner's insurance covering real property, error in determining a flood zone, title E & O, loss of security interest, and many others
  • Balance of Perils: broadens physical damage coverage to perils not required of the borrower
  • Real Estate Tax Liability: coverage against errors and omissions arising inadvertently from unpaid real estate taxes
  • Equity Endorsement: removal of hazard tracking requirement on second and equity loans; coverage can be endorsed to include removal tracking on all loans if it qualifies
For more information about Mortgage Impairment from Proctor Financial, Inc., visit our CompleteMarkets Storefront.

Best regards,

Amanda Bowers
VP of Marketing
Proctor Financial, Inc.
5225 Crooks Road,
Troy, MI 48098