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Proctor Loan Protector
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Mortgage Impairment

Mortgage Impairment from Proctor Financial, Inc. (PFI) is a targeted program that helps protect mortgage lenders, servicers, and financial institutions from losses that result from errors or omissions in the origination and servicing of real estate loans. Built around a robust Mortgage Errors & Omissions framework, this program delivers flexible, wide-ranging protections agents can place for clients with residential or commercial loan exposure.

Ideal Accounts and Appetite

PFI’s Mortgage Impairment program is a fit for banks, credit unions, mortgage companies, and loan servicers that manage residential or commercial real estate loans. The program is adaptable for small portfolios of second or equity loans as well as national servicing books of first-position mortgages. You might bring this market a client who:
  • Originates second mortgage or equity lines and wants to eliminate routine hazard-tracking obligations.
  • Requires protection for losses caused by borrower insurance lapses or cancellations.
  • Has exposure to unpaid property taxes or the consequences of flood-zone misclassification.

Coverage Highlights and Advantages

PFI’s Mortgage Impairment coverage combines several functions into a single program to simplify administration and reduce lender exposure:
  • Physical Damage: Pays for physical-loss exposures when borrower-required insurance is absent, including flood where required by the lender.
  • Errors & Omissions: Responds to mistakes in handling borrower insurance, force-placed coverage, or physical-damage claims.
  • Balance of Perils: Extends protection to perils not expressly required of the borrower, broadening risk mitigation.
  • Real Estate Tax Liability: Covers inadvertent errors or omissions connected to unpaid property taxes.
  • Equity Endorsement: Available to remove hazard tracking requirements for second and equity loans, reducing servicing overhead.
Coverage typically responds when:
  • A borrower’s insurance lapse results in an uninsured physical-loss event.
  • The lender fails to bind force-placed insurance in time after a borrower policy cancels.
  • Real estate taxes are not paid and the lender incurs exposure.
  • A property is misclassified outside a flood zone and lacks required flood insurance.
PFI’s structure helps streamline compliance and operations by removing annual hazard reminder obligations where the equity endorsement is elected, simplifying lender responsibilities while preserving strong loss controls.

Underwriting Notes and Minimum Premiums

This program is placed through six AM Best “A” rated carriers, providing access to stable, well-rated markets. Underwriting is adaptable: minimum premiums vary by account size, loan types, and portfolio concentration. PFI typically can provide indicative terms within 72 hours after a complete submission; more complex or large national portfolios may require additional underwriting detail.

Territories and Availability

This is a non-admitted program available in 50 states plus Washington, D.C., including AL, AK, AZ, AR, CA, CO, CT, DE, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY.

Why Work With Proctor Financial, Inc.?

As a specialized Managing General Agency, Proctor Financial, Inc. combines deep experience in lender-placed and risk-mitigation products with streamlined service for brokers. PFI offers flexible policy language, quick turnaround from underwriting markets, and placement through multiple AM Best “A” carriers—helping you match account structure to market appetite while meeting Fannie Mae, Freddie Mac, and Ginnie Mae expectations where applicable. PFI also recommends companion products such as Mortgage Guard, a lender-placed hazard insurance solution that can further reduce lender exposure. To learn more about how PFI’s Mortgage Impairment program can support your clients, contact us today.

Frequently Asked Questions

What types of accounts are a good fit for this Mortgage Impairment program?

This program is ideal for banks, credit unions, mortgage lenders, and servicers handling residential or commercial real estate loans.

What coverages are included in the program?

Coverage includes Physical Damage, Errors & Omissions, Balance of Perils, Real Estate Tax Liability, and Equity Endorsement options.

What triggers a claim under Mortgage Impairment coverage?

Claims may be triggered by errors such as failure to maintain borrower insurance, unpaid property taxes, or flood zone misclassifications resulting in uninsured losses.

Is this program admitted or non-admitted?

This is a non-admitted program, written through carriers rated “A” or better by AM Best.

How quickly can terms be provided?

PFI typically provides terms within 72 hours of submission, depending on the completeness of the application.

Need help placing an account? Connect with a market specialist.

U.S. States Available

  • U.S. States Available:
  • US Territories:
    Guam, Puerto Rico, Virgin Islands
  • Provider Type:
    Managing General Agency
  • Admitted:
    No States
  • Carriers:
  • Carrier Ratings:
    A or better
  • Commission:
    Competitive
  • Min Premium:
    Varies

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5225 Crooks Rd.
Troy, MI 48098
248-824-1464
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Proctor Loan Protector has other insurance programs like Lender-Placed Hazard Insurance .