Mortgage Brokers E&O

Because underwriters have expected claims against mortgage brokers from the real estate crisis, the mortgage brokers professional liability (E&O) insurance market has tightened. While pricing has not changed as dramatically as you would expect, terms have. Mortgage brokers have been blamed for at least part of the real estate problems, and one claim situation demonstrates why. What is particularly interesting in this case is the application of the fraud exclusion. After the insurer denied coverage for the claim, coverage litigation...