The job of a mortgage broker can be very rewarding, but there are certain risks involved. As a mortgage broker, your goal is to help make other people’s dreams come true. You’re also likely to spend time marketing yourself to potential clients and buyers, all of which can be very profitable for your business.
Unfortunately, originating and servicing borrower’s loans involves all sorts of activities, some of which that can result in your becoming embroiled in a lawsuit. To protect yourself, purchase every type of coverage that falls in line with mortgage broker insurance requirements to ensure you are fully protected.
As a mortgage broker, the last thing you need is to be worrying about a potential misstep that can land you in court in defense of your actions, when what you really need is to be focusing on taking good care of your customers and their needs.
Most mortgage brokers are independent brokers
It is the job of the mortgage broker to work diligently to help put together mortgage loans from separate lenders as well as service potential real estate purchasers. They’re responsible for finding the right type of mortgage loans for their clients, based in part on the background and financial history of clients.
These are examples of reasons why you need errors and omissions coverage that is customized to cover your unique risks. Coverage that will protect your past and future loan transactions, and to ensure compliance with corresponding lenders, which is why you need more than just any generic E&O policy.
For example, let’s say that a borrower’s loan is not processed in a timely manner, which then causes the buyer to miss the opportunity to make the purchase. You could wind up being sued by both the buyer and seller.
It’s a known fact that in the mortgage brokerage business, things happen that are not always in your control. Rates you’ve quoted may not get locked in by deadline, or market rates may become volatile overnight. Confidential client information can even wind up in the wrong hands. A lot of things can happen that could ruin your business. Make sure that you’re protected. Find out about mortgage broker insurance requirements and get a comprehensive insurance program designed for brokers like you.