Professional Liability Errors and Omissions (E&O) Insurance
This insurance protects residential or commercial mortgage banking or brokerage firms and their employees when accused of negligence in the performance of professional duties and services.
This policy provides liability damages and legal defense costs arising from lawsuits. Suits that can be covered include: wrongful loan applicant counseling; wrongful Truth in Lending Act disclosures; mortgage broker/originator/correspondent disputes; loan commitments to mortgagors; wrongful foreclosure and eviction; lock-in representations; unintentional underwriting discrimination (defense costs only); miscalculated ARM adjustments; claims arising from misrepresentation.
Professional services include: loan origination, loan underwriting, processing, marketing, counseling, closing, foreclosing, warehousing, accounting and servicing. Optional coverage extensions are available to cover additional roles.