The Mortgage Crisis & Lender Liability

The current crisis in the lending industry, and specifically in the mortgage and sub-prime segments, will have some impact on the professional liability insurance business. Insurers could see claims from Directors & Officers policies and from professional liability (E&O) policies issued to mortgage brokers, escrow agents, appraisers and other real estate professionals. The question on underwriters minds is the order of magnitude. Bracewell & Giuliani LLP has written an article (see here) that predicts a perfect storm for lender liability....