The Mortgage Impairment program provides a safety net for unknown or unexpected losses by protecting the lender’s interest in the property from errors and omissions that may occur in the day-to-day origination and servicing of residential and commercial mortgage loans. Coverage includes physical damage and errors & omissions and complies with requirements of guaranty organizations like Fannie Mae, Freddie Mac, and Ginnie Mae.
For the basics of this policy, watch Gretchan's Mortgage Impairment 101 video.
Errors & Omissions – liability in handling hazard insurance, real estate tax payments, processing of life/disability payments, flood zone determination, loss of secondary market guarantees, title errors/omissions, VA/FHA/SBA/PMI loss coverage.
Impairment – coverage to the lender’s security interest when the borrower fails to comply with insurance requirements, in addition to property damage of a covered peril, and borrower default. Broader coverage and optional endorsements are available, including coverage for perils not required by the lender.
For more information on Proctor's Mortgage Impairment coverage advantages and customizable options, download our product sheet below.