Patent ID: 7725386

Claim:
A method for providing an insurance program to lenders in a mortgage field using at least one computer to perform the method, the method comprising: receiving insurance applications for representation and warranty insurance from lenders, determining using a computer which lenders are insurable based on a risk assessment, issuing at least one insurance agreement to an insurable lender including pricing and conditions, conditions include a use of controls and a mortgage profile for the particular lender, providing access to the insured lenders to an ineligible database containing entities which are ineligible to participate in a mortgage process to be able to obtain insurance coverage for a particular mortgage, requiring the insured lenders to use the ineligible database during the mortgage application process as one condition of the insurance agreement, training personnel of the insured lenders on at least one of use of controls, signs of fraud, use of the ineligible database, and trends in the mortgage field, providing access to a database containing information regarding the insured lenders and allowing the insured lenders to search the database including performing comparisons to other lenders, receiving mortgage production information regarding a plurality of mortgages from the insured lenders on a periodic basis, scrubbing the mortgage production information against at least the ineligible database using the computer to eliminate from coverage under the insurance agreement any mortgages that cause a match with an entry in at least the ineligible database and populating a coverage database with the mortgages to be covered, calculating a premium using the computer based on pricing in the insurance agreement for covering any remaining mortgages that are included in the mortgage production information after scrubbing the mortgage production information, handling any insurance coverage request for insurance coverage from a requesting lender based on a misrepresentation in financial information provided by or on behalf of the borrower, mitigating any financial loss that may result from the insurance coverage request using at least legal counsel, and determining whether any insurance coverage exists based on whether the mortgage that gave rise to the insurance coverage is included in the coverage database using a computer and the lender has satisfied the conditions of the at least one insurance agreement, when insurance coverage exists paying any proof of loss while attempting to recover from at least one participant who perpetrated the misrepresentation, when no insurance coverage exists offering the requesting lender access to the legal counsel for continued mitigation of any financial loss at the lender's expense.