For mortgage bankers and brokers, there are a lot of steps and details involved in processing a loan. A mistake or omission at any point in the process could be costly to a client, resulting in a liability claim. Read on to learn more about liability protection and e&o for mortgage industry professionals.
Preventing Liability Claims
Having procedures in place to help catch mistakes can go a long way in preventing liability claims. This includes reasonably monitoring tasks performed by everyone involved in the loan process. Something as simple as a missed signature or a typo on a document can be costly in some instances.
However, because the mortgage process has so many moving pieces, a mistake still can happen and likely will happen. So mortgage professionals still need to be financially prepared for potential lawsuits.
Protecting Against Liability Claims
Mortgage errors and omissions insurance can protect those in the mortgage industry from claims resulting in any mistake that occurs from the origination through the closing of a mortgage. Even if allegations are meritless, legal and settlement fees are covered.
For some professionals, one lawsuit can bring their company close to solvency. An investment in e&o for mortgage industry professionals is a small price to pay.