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Proctor Loan Protector
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Proctor Loan Protector
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Mortgage Impairment

Mortgage Impairment from Proctor Financial, Inc. (PFI) is a comprehensive solution designed to protect mortgage lenders, servicers, and financial institutions from losses arising from errors or omissions in the origination and servicing of real estate loans. This program includes robust Mortgage Errors & Omissions Insurance and is one of the most flexible and wide-ranging offerings in today’s market.

Ideal Accounts and Appetite

PFI’s Mortgage Impairment program is ideal for banks, credit unions, mortgage companies, and loan servicers that manage residential or commercial real estate loans. Whether your client handles a small portfolio of second mortgages or services a national book of first-position loans, this program can be tailored to meet their operational and risk management needs. You might have a client who:
  • Provides second mortgage or equity loans and wants to eliminate hazard tracking requirements.
  • Needs protection against borrower insurance lapses that result in physical property damage.
  • Has exposure to unpaid property taxes or flood zone misclassifications.

Coverage Highlights and Advantages

PFI’s Mortgage Impairment coverage includes powerful protections that go beyond traditional policies. Coverage features include:
  • Physical Damage: Covers losses due to borrower-required perils, including flood when needed.
  • Errors & Omissions: Protects against mistakes in handling borrower insurance or physical damage claims.
  • Balance of Perils: Extends protection to perils not required of the borrower, offering broader risk mitigation.
  • Real Estate Tax Liability: Covers inadvertent errors or omissions related to unpaid property taxes.
  • Equity Endorsement: Removes hazard tracking requirements for second and equity loans.
This coverage is triggered when:
  • A lapse in borrower insurance leads to an uncovered physical damage loss.
  • The lender fails to place insurance in time following borrower policy cancellation.
  • Real estate taxes are not paid as required, creating exposure for the lender.
  • A property is misclassified outside of a flood zone and lacks proper flood insurance.
PFI’s program simplifies compliance and operational procedures by eliminating the need for annual hazard insurance reminders and notifications, streamlining lender responsibilities.

Underwriting Notes and Minimum Premiums

Coverage is available through six AM Best “A” rated carriers, giving agents and brokers access to top-tier markets. Minimum premiums vary depending on the size and scope of the loan portfolio, with customization options available to match client needs. Terms can typically be provided within 72 hours of submission.

Territories and Availability

This program is 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. Please note: This is a non-admitted program.

Why Work With Proctor Financial, Inc.?

As a specialized Managing General Agency, Proctor Financial, Inc. brings decades of expertise in lender-placed and risk mitigation insurance products. The Mortgage Impairment program leverages this experience to offer unmatched flexibility, efficient service, and compliance with Fannie Mae, Freddie Mac, and Ginnie Mae standards. In addition to Mortgage Impairment, PFI also recommends companion products such as Mortgage Guard, a lender-placed hazard insurance solution designed to further reduce risk exposure for financial institutions. 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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LOCATION

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 .