Lenders – Operational Risk

Providing lenders with operational efficiencies, risk mitigation and potentially capital relief.

We offer various bespoke insurance products that can provide a lender with operational efficiencies, risk mitigation and potentially capital relief. Some examples of the benefit of utilising insurance are: reducing operational costs and process time, risk mitigation supporting SYSC reporting, improving funded transactions reducing the cost of debt and smoothing the due diligence process of portfolio sale/purchases as well as providing (subject to PRA/FCA approval) capital relief.

These include:

Lenders Title

Covers a broad range of title defects and can be extended to include borrower fraud and lack of good and marketable title. Cover is arranged for new originations, re-mortgages and/or applied to an existing portfolio of loans or a funding structure.

Lenders’ Valuation

Cover mitigates against the risk of the original valuation being deemed negligent. Cover is based on a pre-agreed valuation model with losses under the policy being activated once the original valuation is proved to be incorrect and falls below a defined level. The policy is a first party insurance cover once the loss crystallises with full subrogation rights kept against the valuer and their professional indemnity insurance.

Contingent Buildings Insurance

Contingent Buildings insurance protects the lender against losses caused by inadequate or missing material damage insurance coverage for the secured property.

These three covers are excluded by a traditional mortgage insurance (MIG) policy and can be offered individually or on a portfolio basis. The policy protects the lender’s financial interest in the property following default and repossession and can also include cover for ‘Properties in Possession’ and properties ‘Known to be Uninsured’.