Mortgage Impairment Resources
What is Mortgage Impairment?
Mortgage Impairment protects a lender´s interest in a property by offering broader coverage for unknown or unexpected losses occurring from the day-to-day origination and servicing of loans – including physical damage and errors and omissions. This product also provides the compliance required by guarantee organizations such as Fannie Mae, Freddie Mac and Ginnie Mae organizations. Proctor Financial suggests clients bundle Mortgage Impairment with a Mortgage Guard® policy for comprehensive insurance coverage.
How Mortgage Impairment benefits a financial institution
- Insures the lender if property suffers a loss from physical damage from the borrower´s required perils (i.e., flood) or non-required perils
- Broader coverage and optional endorsements available
- Errors and Omissions coverage on:
- Liability in handling borrower´s insurance
- Real estate tax liability
- Processing of life/disability coverage
- Failure to determine property located in a flood zone
- Loss of secondary market guarantees
- Loss of VA, FHA, SBA, PMI coverage
- Cost-effective: 1 to 3 year policy term with premium based when policy is bound without increase during term even if portfolio grows
For more information, contact PFI at 800.521.6800 or e-mail us.