Broker news forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Private lenders could jack E&O rates for brokers

Notify me of new replies via email
Mortgage Broker News | 08 Nov 2012, 10:29 AM Agree 0
He’s not discouraging them, but an E&O insurance broker is warning mortgage professionals about the costs associated with their expansion into private lending – a move that could raise their insurance premiums by as much as 90 per cent.
  • Dean Koeller | 09 Nov 2012, 07:28 AM Agree 0
    With respect to E&O insurance for mortgatge brokers it is important to note that Insurance companies define private lenders as individuals and does not include MIC's and professional mortgage pools in that definition.
    If you are dealing with teh professional lender it should not impact your premiums.
  • Ryan Kirwan, HQ Mortgages Inc. | 09 Nov 2012, 08:41 AM Agree 0
    Very true! When I set up my Brokerage this year, I indicated a 50/50 split between Private Lending and AAA deals... $5000 annual premium and I was on my own at the time!
Post a reply