Secure Settlements Inc. (SSI) has announced a new program enhancement in association with RFIB Group Ltd. and certain underwriters at Lloyd’s of London for Mortgage Settlement Insurance (MSI), an insurance policy that covers lenders utilizing SSI’s ClosingGuard service against losses arising at the closing table.
The MSI Policy, which launched in April 2014, was designed to protect retail mortgage lenders that utilize SSI’s ClosingGuard closing agent vetting product against losses arising at the closing table from such perils as fraud, theft and documentation error. Coverage extended to warehouse banks and secondary market investors including GSEs, and certain consumer losses at the closing table.
“In talking with our lender clients around the country, we realized that they have concerns about settlement agent risk that extends beyond theft of proceeds to other types of harm that they face today," said Andrew Liput, CEO of SSI. "Nearly everyone we spoke to has seen significant focus by auditors and regulators on consumer data management by third parties. A settlement agent has access to nearly all of a consumer’s personal and financial information; the risk of loss in that area is one that needed to be addressed. The enhanced MSI now does just that for SSI vetted agent transactions.”
The Closing Agent has access to vast amounts of highly personal identity and financial information of the borrower that is disclosed during the closing. The enhanced MSI Policy now protects the Lender against the fraudulent use of this information and consequential losses they become liable for.
“With banks facing increased pressure from regulators in the area of data security and privacy, we realized that the MSI program needed to address this within the coverage. The SSI vetting process ensures that only upstanding professional closing agents have access to the personal information provided on the 1003 application form, which includes a complete consumer personal and financial history,” said Jeremy Brasier of RFIB. “Working with SSI and our Lloyd’s syndicates we have crafted what we believe is a notable enhancement to coverage that will make MSI broader in scope and extend its value to the market."