Why do Pennsylvania Mortgage Brokers need E&O Insurance?

Pennsylvania mortgage brokers can be sued for a variety of reasons regarding any problem that may occur between loan origination and closing.

Even if a mortgage broker in Pennsylvania acted professionally and in good faith during a transaction, he or she can still be sued and could easily face tens of thousands of dollars just in defense cost.

It is therefore vital for Pennsylvania mortgage brokers to have the proper E&O insurance protection.

What Tasks are Involved in working as a Mortgage Broker in Pennsylvania?

The process from loan origination to loan closing involves mutiple steps and tasks. Any error or omission made by a mortgage broker during the process can give rise to an E&O claim. Some of the steps and tasks involved include the following:*

• Advising clients regarding types of loans
• Loan application
• Loan qualification
• Loan processing
• Loan underwriting
• Loan closing
• Providing disclosures
• Providing good faith estimates
• Documenting loan file
• Loan prequalification and preapproval
• Interest rate locks

* The coverage offered is subject to limitations and exclusions. Please refer to the actual insurance policy for details regarding coverage, exclusions, and limitations.

What Coverage does an E&O Policy provide Pennsylvania Mortgage Brokers?

Errors and omissions insurance provides coverage for claims made against mortgage brokers by reason of an error or omission in the performance of professional services.