Insurance Protection During a Major Mortgage Melt Down
A SIMPLE APPROACH TO FINANCIAL PROTECTION
By Wesley J. Carson
In recent months, the mortgage industry has gone through a whirlwind of turmoil. From loan buybacks to the seemingly endless amount of defaults, the professionals and corporations of this industry have experienced continued anguish over the last six months. On an almost daily basis we are reading about predatory lending, bad investments, or worse, the carelessness in underwriting and failure of major corporations.
Even with all the dreadful news there are still ways to protect your company from a catastrophic hit to your financial statement. One way is to establish a Mortgage Brokers Professional Liability Insurance Policy. These polices are designed to specifically protect Mortgage Brokers and provide financial protection for an actual or alleged wrongful act while acting in the capacity as a mortgage broker. Many suits include errors in the loan application process, failure to disclosure material information, inaccurate / incomplete appraisals and even negligence in recording a payment of the correct amount. A main component is the perception of an unsuccessful transaction. A client may feel they have been financially wronged and will bring a multitude of parties into a suit to try and recap the perceived losses. In addition to the occasional mistake, even if we believe that we have conducted ourselves in a professional and thorough manner, there is still the need to retain an attorney to defend the claim. With many attorneys? fees starting at $250+ / hour, everyone looks to their insurance policy for coverage.
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