MORTGAGE ERRORS AND OMISSIONS

policies protect you as a lender/mortgagee if you fail to require, procure or maintain your customary coverage on real property collateral, and a loss occurs to the mortgaged property

Optional extensions of Mortgage Errors and Omissions coverage include:

1. Real Estate Tax Liability protects the lender against errors and omissions relating to non-payment of real estate taxes by the lender on behalf of the borrower.

2. Life and Disability  protects the lender in the event of non-payment of mortgage life, accidental death or disability on behalf of the borrower.

3. Failure to Determine Flood Zone Liability. Covers the error or omission arising out of lender's duty to determine whether or not a particular property is in a flood zone.

4. Compliance Procedures. Covers failure to maintain private mortgage insurance, and compliance with requirements from FNMA, FHLMC or GNMA.