Safe Settlements Inc. (SSI) announced its partnership with RFIB Group Ltd. and specific underwriters at Lloyd’s of London to provide a new merchandise that will insure lenders utilizing SSI’s ClosingGuard support against losses arising at the closing table. Endorsing the effectiveness of SSI’s suite of online risk management items for the vetting of closing agents, the group of insurance specialists is launching the Mortgage loan Settlement Insurance (MSI) Policy in assistance of the SSI plan. The MSI Policy is made to safeguard retail mortgage lenders that utilize SSI’s ClosingGuard closing agent vetting merchandise against losses arising at the closing table from this kind of perils as fraud, theft and documentation error. Coverage extends to warehouse banks and secondary market place traders like GSEs, and might be offered as properly to shoppers who are indemnified for losses at the closing table.
SSI’s vetting approach, developed following a number of years of consultations in London, Bermuda and New York with insurance coverage industry risk specialists, will be the basis for the MSI Policy. The Lloyd’s syndicates will demand a closing agent to have a rating of “low risk” by SSI for the agent to be eligible for coverage. The MSI Policy will be marketed and administered by surplus lines broker Grace Church Intermediaries LLC working in partnership with insurance coverage agents nationwide and the appointed insurance coverage intermediary, Lloyd’s-registered broker RFIB.
“Joining the successful danger mitigation practices of SSI’s closing agent vetting system with the sound underwriting practices of Lloyd’s has designed a policy that we envisage offering unparalleled further protection in an ever-evolving lending setting and giving lenders more certainty as they adapt to new landscapes,” said Jeremy Brasier of RFIB.
As opposed to other sorts of coverage or safety, the MSI Policy covers theft of bank funds, borrower money and seller money willful blindness negligent funds disbursement failure to adhere to closing instructions collateral blunders conspiracy and failure to record.
“Based on the effectiveness and achievement of our ClosingGuard services, the new MSI Policy is ready to offer you much more extensive coverage than other insurance goods this kind of as title insurance coverage or closing agent errors and omissions insurance,” SSI CEO and President Andrew Liput explained. “This ought to become something all retail mortgage lenders take into account as they evaluate acceptable levels of risk and practice sound lending.”
The Federal Bureau of Investigation (FBI) says that lenders filed much more than 98,000 suspicious activity reviews in 2013 and reported one,220 indictments of mortgage fraud in 2012. Meanwhile, escrow and closing fraud grew more than 20 % in the past 3 many years, according to the Monetary Crimes Enforcement Ne2rk (FinCEN) of the U.S. Division of the Treasury.