New Insurance Product Adds Additional Layer Of Safety For Mortgage Lenders

Posted by Orb Staff on May 02, 2013 No Comments
Categories : Residential Mortgage

Equity National has introduced Equity ISP (Insured Settlement Protection), an insurance product designed to protect insured mortgage lenders against closing fraud, defalcation and closing instruction violations.

Developed for Equity National by The Prieston Group, the policies are insured through Lloyd's of London and give lenders protection above and beyond what is provided by the traditional closing protection letter (CPL), the company says. Equity ISP, for example, will cover claims up to three years from the date of closing. Most CPLs, in contrast, may only be invoked within 30 to 180 days and are non-assignable.

‘We partnered with The Prieston Group on this after seeing a number of lenders experience very real damage where they had mistakenly believed the CPL would protect them,’ says Jim O'Donnell, president of Equity National. ‘Right now, lenders are increasing their expectations of closing agents while the title industry is simultaneously cutting back on what it will cover. This is the only product out there right now which can address the shortcomings of the CPL to the advantage of lenders.’

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