Ellie Mae says it is adding a loan buy-back insurance option to its Total Quality Loan (TQL) program, which is designed to enhance the salability of loans originated through the company's Encompass360 software system.
Correspondent lenders participating in the TQL program can now choose to insure and be covered for losses of up to $100,000 per loan. Underwritten by affiliates of Lloyd's of London and Liberty Mutual Group, the insurance policy protects lenders from losses due to borrower and appraisal fraud and regulatory non-compliance. The policy also protects against loss if a loan is found to be non-compliant with various regulations.
Ellie Mae says the coverage begins at the date of origination and lasts for three years, and the policy's coverage automatically transfers with ownership of the loan.