Essential insurance for mortgage lenders, originators and servicers
Mortgage impairment insurance is an essential product for mortgage lenders, particularly regional banks, credit unions, and community banks. It is primarily designed to provide coverage needed in the event an uninsured or underinsured damages a mortgaged property and that borrower (a homeowner or a commercial property owner) failed to maintain the required property insurance, and subsequently defaults on their loan as a direct result of the loss or damage to the property. “All mortgage lenders, originators, and servicers should carry mortgage impairment insurance,” said Paul Zubrowski, assistant vice president of…