Insurance for mortgage brokers.

Mortgage broker E&O, the surety bond regulators require, cyber for borrower data, and crime coverage, for independent brokers and small lending shops.

What mortgage brokers usually carry

Mortgage broker surety bond
Mortgage broker E&O
Cyber and data breach
Crime and fidelity
Social engineering fraud
Business owner’s policy

Watch for these in a mortgage broker’s policy

A first policy’s retroactive dateA first policy often covers only loans closed after it starts. Ask for prior acts coverage for the loans already on your books.
Rate lock errorsA lock that lapses or was never placed is a classic broker claim. Check that your policy answers for the borrower’s added cost.
Fair lending claimsClaims that you steered or priced borrowers unfairly are often excluded, or covered for defense only. Ask how yours treats them.
Regulatory finesFines and penalties from an exam are usually not covered. Some policies pay the cost of responding to an investigation, often under a sublimit.
Borrower dataLoan files hold income, bank, and Social Security details. Federal privacy rules require safeguards, and a breach brings notice costs that cyber, not E&O, is built to pay.

What regulators and wholesale lenders ask mortgage brokers for

A surety bondRequired before you can broker loans. The amount is set by regulators, often based on your loan volume.
A minimum E&O limitMany wholesale lenders require E&O before they approve you, and ask for proof each year.
Fidelity coverageLenders and investors often ask for crime coverage for employee theft of funds and documents.
Information securityLenders ask about your safeguards for borrower data, and many ask whether you carry cyber.

Questions mortgage brokers ask

Straight answers.

The questions we hear most, answered plainly.

Who sets my mortgage broker bond amount?

Your regulator does, and the amount often rises with loan volume. We quote the exact bond your license calls for.

If the bond pays a claim, who pays it back?

You do. Before the bond is issued you sign an indemnity agreement, and the surety collects what it paid plus its costs.

Does E&O cover a loan that fails to close?

If the borrower claims your error caused it, such as a missed lock or a lost document, most mortgage E&O defends it. A loan denied on its merits is not your error.