Mortgage Impairment E & O
The Mortgage Impairment and Errors & Omissions policy is designed to minimize the Lender's exposure to losses resulting from a borrower’s failure to acquire and maintain adequate physical damage insurance on real estate properties. No insurance monitoring is necessary under Option 1. Under Option 2, tracking insurance cancellations/lapse notices is necessary. The only requirement is that you have a copy of the borrower’s insurance in the file at loan closing. Only the interests of the lender are protected, no protection is provided for the borrower.
BLANKET COVERAGE HIGHLIGHTS:
Option 1
This Plan provides blanket insurance coverage for all Real Estate Loans (including, commercial, seconds, and Home Equity Loans).
- $1,000,000 of coverage against impairment (amount not able to recover on property).
- No tracking of insurance renewals or cancellations.
- Lender placed hazard insurance is only needed on foreclosed properties when the title passes into the lenders name at sheriff sale.
Option 2
This Plan provides blanket insurance coverage for all Real Estate Loans (including, commercial, seconds, and Home Equity Loans).
- $1,000,000 of coverage against impairment (amount not able to recover on property).
- Tracking of cancellations/lapse notices is required, blanket insurance provides 90 days of coverage from the date the lender receives the cancellation/lapse notice. Borrower must reinstate insurance or lender must place hazard insurance within 90 days.
- Lender placed hazard insurance is effective with J.T. Miller Company the same day it is requested.
Lender Placed Hazard Insurance
- Instantly purchase $2,000,000 of coverage for any real estate property.
- Rates are very competitive with low deductibles.
- A.M. Best rating of A+ (Excellent).
Contact J.T. Miller Company with any questions you have regarding mortgage impairment errors and omissions.
