Why Mortgage Brokers and Bankers Need to Protect Themselves
Buying a home is the epitome of the American Dream. While exciting, the inherent risks of buying a home should not be underestimated. Luckily, homeowners can mitigate those risks with a comprehensive home insurance policy. But the risks of buying a house don’t fall only at the feet of the buyers. The mortgage brokers and bankers handling the financial transactions also assume major risks that need to be mitigated as well.
The home-buying process requires a seemingly never-ending amount of paperwork. Collecting data and transcribing the information can lead to errors and omissions. The results could be devastating to eager home buyers if a loan application or home sale is denied because of an honest mistake. Beyond the devastation, the mortgage broker or banker who made the mistake can be held liable and ordered to pay damages.
Don’t fret, there is a way to protect yourself from potential error and omission claims: a comprehensive mortgage broker insurance policy. While a basic policy will cover error and omission claims, a comprehensive policy, according to information about insurance provided by Axis, expands protections even further to yield spread claims and subprime loan claims.
The home-buying process is often exciting for all parties involved. To protect yourself and mitigate your risks, find a mortgage broker insurance policy that meets your needs.