Do mortgage brokers really have exposures?

You may wonder if your exposures are real or imagined. Take a look at some of the circumstances below that lead to claims. You decide — should you have professional liability coverage?

• The mortgage company alleges insured did not do proper background check.
• Application and paperwork is not submitted timely, resulting in a delay in the processing on the mortgage. Generally, it is alleged that the buyer missed out on a lower mortgage.
• Alleged misrepresentation of the amount of closing costs.
• Defamation/slander against particular mortgage companies and their financial stability.
• Alleged nondisclosure of a second mortgage on a property.