Mortgage Bankers Bond (Fidelity Bond and E&O)

The Mortgage Bankers Bond combines the Fidelity Bond and Mortgagee’s Errors & Omissions (E&O) protection required by Fannie Mae, Freddie Mac, Ginnie Mae and other secondary market investors, and warehouse lenders. Aggregate limits available up to $50,000,000. Double aggregate limits are also available for certain insuring agreements.

Endorsed by the Mortgage Bankers Association (MBA), Lenders One, and various state MBAs, the Mortgage Bankers Bond is offered exclusively through Bankers Insurance Service.

In the decades since the first MBB certificate was issued, the product has evolved significantly to address additional exposures that mortgage bankers face. Recent amendments include enhancement of our Forgery and Fraudulent Alteration coverage to better cover today’s digital lending exposures. The policy’s coverage for loan repurchase scenarios involving employee dishonesty has also been enhanced.

The Mortgage Bankers Bond is offered exclusively to mortgage banks and mortgage servicers.

The Mortgage Bankers Bond (MBB), endorsed by the Mortgage Bankers Association, has three important components: Fidelity Bond, Mortgagee’s E&O, and Crime coverage. The MBB covers:

Loss from employee dishonesty, including closing agents and attorneys
Liability for theft of secondary market investor’s and warehouse lender’s money or collateral
Your mortgage interest and liability to investors and borrowers when certain losses occur
Loss of property on premises or in transit including real estate documents
Forged checks and forged or fraudulently altered real estate documents
Electronic or computer crimes

The MBB meets the substantive requirements of Freddie Mac, Fannie Mae, Ginnie Mae, other secondary market investors and warehouse lenders.

For more complete product information, please see our Highlight Sheet.

Fidelity Coverages:

Employee Dishonesty
Theft of Investor’s Money or Collateral
Theft of Warehouse Lender’s Money or Collateral

Mortgagee’s Errors and Omissions (E&O) Coverage:

Loss of Mortgage Interest
Liability to Mortgagors
Liability to Investors
Real Estate Taxes
Recordation E&O
Optional coverages available

Crime Coverages:

Premises
Transit
Forged Checks
Forged or Fraudulently Altered Real Estate Documents
Electronic and Computer Crime
Fraudulent Mortgages
Claims Expense
Replacement Expenses

For more complete product information, please see our Highlight Sheet.

Double Aggregate Limit
Mortgage Banking Language
Innocent Partner/Shareholder Protection
Investor Protection

For more complete product information, please see our Highlight Sheet.

Bankers Insurance Service’s experience in mortgage lending and servicing, combined with our strong underwriting relationships, enable us to offer competitively priced, custom-tailored insurance coverage to meet your client's needs, while also satisfying investor requirements.

As the leading provider of mortgage banking insurance in the U.S., our dedicated team is pleased to assist our clients in other important ways:

Offer policy modifications or enhancements to existing policies and programs to meet individual needs
Create new insurance programs and policies to meet the ever-changing needs of the mortgage lending and servicing community
Show you how to satisfy Fannie Mae, Freddie Mac, Ginnie Mae and warehouse lender insurance requirements and answer their questions on your behalf to help you with your business partners
Provide state-required license bonds as an additional service to our mortgage banking clients

Our goal is to ensure our clients have the investor and warehouse lender required coverages, as well as custom coverage to help protect their interests.

Or call 800-323-2743 to speak to a Bankers Insurance Service Specialist.