Mortgage Investor Bond (MIB)

The Mortgage Investor Bond protects mortgage investors and warehouse lenders from dishonest and fraudulent conduct by Mortgage Bankers/Brokers, as well as providing expansive Fraudulent Mortgages coverage for loans from third-party originators and counterparties that a Mortgage Investor would contract with to fund mortgage loans.
A significant risk to any large-scale mortgage lender is exposure to catastrophic mortgage fraud schemes, which would exhaust standard fidelity policy limits and expose the mortgage investor to substantial uninsured losses.