This policy is a cost-effective option for lenders that simply require fraud cover as opposed to a policy which covers a range of other title defects. The fraud indemnity policy safeguards against losses occurring from a fraud conducted by the current borrower, a previous owner of the property or an associate of the borrower.
For a minimal, one-off premium, the policy provides cover to a lender and any successor in its title to the mortgage debt against losses arising from the mortgage being invalid or unenforceable against the borrower’s interest in the property due to an act of forgery, fraud, impersonation or duress.
With the fraud indemnity policy, a lender can obtain peace of mind and focus on completing its mortgage.
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