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Mortgage Bankers Bonds Crime Overview

Crime coverage is often a feature of Mortgage Banker Bonds. Here are some of the more common crime coverages that can be included in your policy:

On Premises

Covers loss of property, including real estate documents, due to robbery, burglary or mysterious disappearance.

In Transit

Covers loss of property, including real estate documents, while in transit with a messenger, U.S. Postal Express Mail or armored motor vehicle due to robbery, larceny, misplacement or mysterious disappearance.

Check Forgery or Alteration

Covers loss from forged checks, drafts or promissory notes made or drawn by or drawn
upon your company. Forged Documents/Securities Covers loss resulting from reliance upon a forged signature or fraudulent alteration of a mortgage, note, trust deed or title policy in connection with a real estate loan originated or purchased by you.

Claims Expense

Provides reimbursement of expenses for hiring independent outside accountants or other non-legal experts to help determine the amount and extent of a loss covered under the bond.

Computer Crime

Covers loss from money paid out or credit established based on fraudulent input of electronic data in your computer system or a service bureau’s computer system. Coverage may further include destruction or attempted destruction of your electronic data by means of a computer virus and electronically transmitted communication which purports to have been sent by you.

Optional Endorsements that may be available:

Loan Closing Agents

Extends the employee dishonesty section to pick up acts of a loan closing agent while performing loan closing services in connection with a real estate loan either originated or acquired by you.

Independent Contractors

Covers loss through dishonest or fraudulent acts of an independent contractor while performing certain loan services on your behalf.

Wholesale Lenders Endorsement

Extends the Forged Documents coverage to include loans originated by someone else but underwritten by you.