Source: http://lendersrisk.com/index.php/apply-online/mortgage-impairment/
Timestamp: 2018-07-16 04:48:00
Document Index: 616256262

Matched Legal Cases: ['art 2', 'art 1', 'art 3', 'art 2', 'art 2', 'art 2', 'art 4', 'art 5']

Mortgage Impairment - Lenders Risk
Please contact Sales at 410-296-7871
SUMMARY OF AVAILABLE COVERAGES:
Any combination of sections outlined below may be purchased, provided Sections A and/or C are included.
Section A(1): Physical loss or damage from ‘Required Perils’. Covers loss to the Assured’s interest through the uncollectability or non-existence of insurance against perils that are required by the borrower – including mandatory flood insurance – in the Assured’s loan closing procedures.
Section A(2): Liability. Covers errors and omissions, on a claims made basis, relating to the Assured’s handling of physical damage insurance and homeowner’s insurance covering the real property of borrowers. The Assured’s defence costs are also provided for within the limits.
Section B(1): Real estate tax liability. Covers the Assured against errors and omissions relating to non-payment of real estate tax by the Assured on behalf of a borrower.
Section B(2): Section suspended as coverage incorporate in Section F.
Section B(3): Life and Disability insurance. Covers the Assured against errors and omissions arising out of the Assured’s procurement and maintenance of life or disability insurance on behalf of a borrower.
Section B(4): Flood Disaster Act 1973 liability. Covers the Assured against errors and omissions claims arising out of Assured’s duty to determine whether or not a particular property is in a flood zone.
Section B(5): GNMA procedures. Covers the Assured, as mortgage servicer, against errors and omissions should the Assured fail to comply with GNMA procedures which result in a guarantee being lost.
Section B(6): Title Errors & Omissions liability. Covers errors and omissions arising out of the Bank’s failure to obtain the correct title insurance, or a title abstract or legal opinion as to a title depending on custom and practice.
Section B(7): Recordation Errors & Omissions. Covers errors and omissions arising out of the Bank’s recordation of a loan as a servicer of a loan sold to GNMA/FNMA/FHLMC
Section B(8): Satisfaction of Mortgage liability. Covers errors and omissions arising out of the Bank’s connection with the satisfaction of a mortgage on property in which the Assured holds an insurable interest.
(Section B coverages are on a ‘claims made’ basis and, in addition, provide for the Assured’s defence costs, within the limits)
Section C: Physical loss or damage from Balance of Perils. Provides insurance should the security for the loan suffer a physical loss from any other cause other than outlined in A(1), and the Assured be unable to recover the loan from the borrower.
Section F: Loss of Veterans Administration, Federal Housing Administration, Small Business Administration and private mortgage guarantee coverage. Covers loss to the Assured’s interest should he fail to provide to a ‘mortgage guarantee’ agency or Insurance Company its property notice of loans in arrears.
Section G: Loss of Security Interest due to Defective Title.
Section H: Custodial Errors and Omissions. Losses incurred due to the verification, certification, maintenance and custody of documents concerning loans sold to GNMA, FNMA or FHLMC
Note: Policies will be issued in the joint name of the applicant and any ‘servicing’ subsidiary scheduled below.
4.	Type of institution (i.e. Savings and Loan – Member of Savings and Loan League; Federal/Commercial/ National Savings Bank; Mortgage Bank; or other):
5.	Major affiliations (i.e. National Savings and Loan League/State Savings and Loan Association):
Part 2: Questions concerning the Applicant’s Mortgage Portfolio
Note:	‘Applicant’ is to be understood as applicant plus servicing subsidiary named in Part 1. ‘Value’ should, where possible, exclude the value of loans secured solely by land. For the purpose of this insurance ‘Mortgage’ includes ‘Home Equity Loans’ and ‘2nd Mortgages’
1.	Does applicant’s standard mortgage agreement require borrowers to procure and maintain insurance in an amount of not less than the amount of applicant’s mortgage interest for a minimum of the perils of fire and extended coverage and in compliance with any commercial policy coinsurance clause?
2. Does the applicant require being named as mortgagee on the mortgagor’s insurance policy?
3. Does the applicant require hazard policies for mortgaged properties to be provided by insurance companies with a rating of at least B from Best’s policyholder ratings?
4. For Loans serviced on the applicant’s behalf by others, does the applicant require that Servicers carry their own E & O Insurance?
5. What is the average life of the applicant’s recently paid up loans?
6. Does the applicant check that insurance required of the mortgagor is in force at loan closing?⁪
7. Does the applicant mail out, at least annually, reminder notices to the borrower that they should maintain hazard insurance?
8. Does the applicant' “force place” coverage when necessary for Hazard Insurance?
8b. Does the applicant' “force place” coverage when necessary for Flood Insurance?
8c. Name of Carriers:
8d. Describe the method of tracking used
9. Does the applicant’s forced placed program include the “Automatic Coverage Endorsement”?
10. Provide the number of foreclosures completed and the number of mortgages outstanding for each of the last three calendar years:
Total Number of Mortgages Outstanding
Average Balance of Loans Foreclosed
11. Over the past 12 months, what was the average length of time prior to sale of foreclosed property:
12. Provide average percentage of mortgages that were 90 days or more delinquent over the past 12 months:
13.	Estimated Number and Value of Loan originations over the next 12 months for Residential (1-4 Family) mortgages
13b.	Estimated Number and Value of Loan originations over the next 12 months for Commercial mortgages
14. BREAKDOWN OF ALL MORTGAGES (INCLUDING COMMERCIAL, 2NDS AND HOME EQUITY LOANS)
14a. Number of mortgages serviced by applicant for own interest (wholly owned or part owned):
14b. Number of mortgages serviced by applicant for others (no mortgage interest):
14c. Number of mortgages serviced by others for applicant’s interest (wholly or part owned):
14d. Total number of mortgages both owned and non-owned but serviced (i.e. (a) + (b) + (c) ):
15. Number and value of ALL loans as shown in 14. (d) above that are located in:
$ in 1st tier Coastal Counties
16. Commercial Mortgages Only
17. Second Mortgages and Home Equity Loans
18. Mobile Homes Only
19. Mortgages in Excess of $1,000,000
The Outstanding Balance of the five largest loans
21. Approximate percentage of serviced loans subject to VA, FHA, SBA or other Mortgage Guarantee Insurance:
22. What procedures are followed to give proper notice of delinquency to mortgage guarantors?
23a. Approximate percentage number of loans on which applicant "escrows" for Hazard Insurance
23b. Approximate percentage number of loans on which applicant "escrows" for Life and Disability
23c. Approximate percentage number of loans on which applicant "escrows" for Real Estate Taxes
24. What procedures does the applicant employ to monitor payment of Real Estate Taxes?
25. Has the applicant agreed to undertake any Custodial Services for FHLMC, FNMA and/or GNMA?
25a. Number of loan files the applicant holds in custody for FHLMC:
25b. Number of loan files the applicant holds in custody for FNMA:
25c. Number of loan files the applicant holds in custody for GNMA:
25d. Description of the location, fire protection, & security provided by applicant for these files
25e. Details of back-up records in existence in case of loss to the original files.
25f. Details of how the applicant controls and tracks file access, removal & return.
26. Does the applicant require mortgagors to obtain Title Insurance and/or the equivalent, as appropriate to local practice, at loan closing?
26a. Percentage of loans on which evidence is required at loan closing:
26b. Description of these requirements.
26c. Description of applicant’s loan policy provisions with respect to Title examinations / searches.
26d. Estimated number of mortgage loans to be made in the next 12 months:
Part 3: Geographical Breakdown of Loans
Notes: Include in the following those loans in which the applicant has a mortgage interest (wholly or part owned) only (i.e. Loans declared in Part 2 Q14 (a) + (c) only) DO NOT INCLUDE LOANS OWNED BY OTHER THAN THE APPLICANT. “Value” should, where possible, exclude the value of loans secured solely by land.
1. Total number of mortgages (wholly or partially owned) numbered in Part 2 Q14 (a)+(c)
2. Total value of mortgages (wholly or partially owned) numbered in Part 2 Q14 (a)+(c)
3a. All states - Excluding those States set out separately below:
3b. North Carolina, South Carolina, Georgia, Florida, Alabama, Mississippi, Louisiana & Texas
3c. Tennessee
3d. Arkansas
3e. Missouri
3f. Kentucky
3g. Washington
3h. Oregon
3i. CALIFORNIA COUNTIES, including:
i. San Francisco, San Mateo
ii. Contra Costa, Alameda
iii. Del Norte, Humboldt, Lake, Marin, Mendocino, Napa, Solano, & Sonoma
iv. Monterey, San Benito, Santa Cruz, Santa Clara
v. Los Angeles
vi. Orange
vii. Kern, St. Luis Obispo, Santa Barbara, Ventura
viii. San Diego
ix. Alpine, Imperial, Inyo, Mono, Riverside, San Bernadino
x. All other counties not included in i to ix above
3j. Hawaii
3k. Alaska
3l. Puerto Rico
3m. Other
Part 4: Coverage Required
Section B (7)
Section B (8)
Part 5: Previous Mortgage Protection Policy
1. Has the applicant made application for insurance under any of the sections of the Policy had been declined?
State circumstances
2. Has the applicant suffered any losses during the past five years or is the applicant aware of any circumstances likely to give rise to a loss under any Section of the Policy?
I/We hereby declare that the above statements and particulars are true, that I.we have not suppressed or mis-stated any material facts and I/we agree that this Proposal Form shall be the basis of the Contract with Underwriters.
Richard M. (Rick) Kaser
Rick began his financial institution insurance career in 1985 when he joined the staff of Stan Funderburg and Associates (SFA), an Oklahoma City, OK-located subsidiary…	Read More
Gary D. Lund, CPCU
CPCU, Executive Vice President
Gary has over 40 years of experience in the loan-related and specialty insurance industry. He began his career in the Underwriting and Regulatory Compliance areas…	Read More
Nima Seirafipour, CPA, MBA
Nima has over 7 years of experience in the accounting and finance industry. He began his career in public accounting in 2006 while interning for…	Read More
Jeanne began her career in the financial institution insurance industry in 1985 as a Claims Adjuster and Underwriting Assistant for Lenders Single Interest and Dealer…	Read More
David has been in the computer industry for over 30 years. His experience includes a variety of roles from systems analyst, to programmer, to technical…	Read More
Trey Kaser
Trey Kaser (Richard M. Kaser III) has been familiar with the financial institution insurance industry since his early years, beginning with his father’s and grandfather’s…	Read More