Mortgage Impairment Insurance

Customized Coverage Tailored to Your Needs

Our Mortgage Impairment Insurance program safeguards lenders against unforeseen losses by protecting their interests in properties from errors and omissions during the origination and servicing of both residential and commercial mortgage loans. Our comprehensive coverage includes protection against physical damage and errors & omissions, adhering to the standards set by guaranty organizations such as Fannie Mae, Freddie Mac, and Ginnie Mae.

Advantages of Mortgage Impairment

Our stand-alone Mortgage Impairment policy is among the broadest in today’s market, offering several key advantages:

  • Enhanced Coverage: Provides coverage beyond what is required by Fannie Mae and Freddie Mac.
  • Simplified Requirements:
    • No need for lenders to maintain the borrower’s original insurance policy.
    • Lenders can establish their own procedures for keeping records of borrower’s insurance.
    • Flexibility for lenders to determine their tracking process according to their business needs.
  • Comprehensive Protection:
    • Includes coverage for flood, water backup, collapse, and earthquake (prior submission required for California).
    • Provides liability coverage on escrowed loans if borrower’s insurance includes it.
    • Covers physical damage for REOs for up to 90 days after foreclosure.

Customizable Options

We recognize that every lender’s needs are unique. Typically, both impairment and errors & omissions coverages are included.

  • Checking Basis: For lenders who verify borrower’s insurance at loan closing and annually for all first mortgage loans in their portfolio, ensuring compliance with investor requirements.
  • Ex-Checking Option: For those who prefer to verify insurance at loan closing and respond only to cancellation or non-renewal notices thereafter.
  • Blanket Impairment Option: For lenders who choose to verify insurance is in place only at loan closing.

Our policies can be bound for either one or three-year terms, with discounts available on the three-year prepaid option, offering substantial savings.

At HUB Financial Services, we tailor our solutions to meet your specific needs, providing you with the peace of mind that your interests are protected.