Errors & Omissions
Professional

liability

limited coverage . . . for conduct undertaken in performing or rendering professional acts or services.
Mortgage Bankers & Lenders

The Warnock Agency & Stateside Underwriting can provide several products for mortgage companies (both Mortgage Bankers and Mortgage Brokers) including:

Mortgage Bankers Bond (MBB)
This special form developed for Mortgage Companies provides Fidelity Crime Bond Protection. Employee dishonesty and Investor Required “E&O” are the two key coverages required by most “Investors”, but the bond also includes forgery protection, transit loss protection and other coverages.

-Fidelity Coverage for loss from employee dishonesty as well as from closing attorney agent, can also cover 3rd party originators and/or servicing contractors

-Coverage for theft of mortgage investors and warehouse lenders money or collateral as required by Fannie Mae, Freddie Mac of Ginnie Mae satisfying industry standards and most mortgage investors requirements.


Mortgage Company Professional Liability (MCPL)
This policy protects against possible losses from suits mainly in the areas of loan origination.  This can include the loan application process, loan processing, underwriting, closing, Secondary Market sales, servicing, and loan foreclosure.

The Stateside Professional Liability Policy covers a firm’s legal liability for wrongful acts made in providing professional services such as loan origination, underwriting, processing, marketing, closing, warehousing and loan servicing.

Loan commitment Suits which may be covered arise in the areas of:

  • Secondary market sales
  • Servicing
  • Loan origination
  • Underwriting
  • Wrongful Truth in Lending
  • ARM adjustments errors
  • Lock in representations
  • Loan foreclosure
  • Loan processing
  • Closing to mortgagors
  • Act exposures
  • Wrongful loan application counseling

Apply for the Mortgage Lenders Error & Omissions Form here.

Apply for the AA Sub Prime Supplemental Application here.

MCPL Features:
  • Duty to defend
  • Pay on behalf of language
  • Final Adjudication wording for Fraud/Dishonesty exclusion
  • In fact wording for personal profit
  • No bankruptcy or insolvency exclusion
  • Broad definition of Insured’s Profession
  • No commingling of funds and failure to pay exclusion
  • Professional services do not have to be offered for a fee to be covered
  • No sub-limits or exclusions for a Claim brought by regulatory, governmental or quasi governmental agency as long as the Claim is brought on behalf of a customer arising from Professional Services or failure to render such.
  • No exclusion for fee disputes except as it may relate to yield spread premium, kickbacks fee splits and referral of settlement service business
  • No exclusion for cost guarantees or estimates of probable cost or cost estimates being exceeded
  • No class action exclusion
  • No exclusion for express guarantee of the availability of funds
  • No binding arbitration requirement
  • No Predatory Lending Exclusion

Coverage for the MBB and MCPL is with Underwriters at Lloyds, London and London Companies.

Note: The actual policy wording determines coverage, and each each claim has its own individual facts to determine coverage. The Warnock Agency & Stateside Underwriting have specialized in mortgage companies for more than twenty years and are equipped with the experience needed to offer assistance to you with these products. Stateside also has in house underwriting authority, which allows us to make on the spot underwriting decisions in most cases. SUA helps the mortgage industry daily to save clients money and meet their critical investor requirements.

 

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