The Mortgage Loan Report (MLR) is a credit-based report that gives the lender a view of the borrower’s mortgage secured liens as well as any reported judgments and public record information. The first part of the report is generated from credit data, and the remainder of the report includes a “borrower lien affidavit” form that is completed by the borrower either prior to or at closing. The MLR typically returns to the lender in 30 seconds, thus giving the lender the ability to quickly make an underwriting decision on the loan.

The Property Report Plus (PRP) combines the traditional O & E Report (Property Report) with the coverage provided under the E & O policy described below.

Policy Summary:

The Professional Liability Policy provides Errors & Omissions (E&O) protection for entities providing Mortgage Loan Reports (MLR), Owners & Encumbrances Reports (O&E), and other forms of property reports. The provider (1 Source Data) to which the policy is issued is protected or insured against claims made by a third party (1 Source Data’s customers) resulting from negligence, errors, omissions, discrepancies or mistakes contained in the covered report causing damage to the third party. The Insurance policy is a standard approved form that has been in use for over 20 years, and coverage is provided through an A.M. Best “A” rated insurance company. The policy is a legal liability policy and covers your written or verbal contractual exposure.

Provider maintains an enhanced Errors & Omissions policy that is “occurrence based” with no deductible and no aggregate limits from Markel issued through United Specialty Services.

• The provider of the Report is the “insured” or the entity to which the policy is issued. The “insured’s” customer or client to which the reports are sold is the “third party” which is entitled to damages resulting from inaccurate or incomplete reports.
• The lender must have an actual loss sustained. The loss will be the lesser of the actual loan loss or the amount of the error or omission.

Standard Loan Parameters:

• Eligible loans: Equity, Seconds, Refinances
• Maximum Loan Amount - $1,000,000 Refinance $500,000 Equity / Seconds
• Maximum LTV – 100%
• Minimum FICO – 600
• Residential Properties (Primary Residence or Second Home)
• In-house loans or other lender refinances
• Closing must occur within 30 days of the report

*These are standard loan parameters but customized solutions are available.

Product Features:

• MLR delivered in 30 seconds for quick underwriting decision
• Gap covered between report date and recordation
• Protection from Fraud by borrower on the affidavit
• Life of Loan and Transferable
• Simple claims process for reported Errors or Omissions resulting in lender loss
• Claim Settlement within 30 days
• Available in all 50 states
• Equity loans can be in any position including first
• Foreclosure not required if commercially uneconomical to foreclose
• Includes filed tax liens
• Approved by Standard & Poors for Equity, Second, and Refinance loans

The provider of the MLR or O&E Report is not selling Insurance, Title Insurance or an “Insured” Report, nor is the provider providing a warranty or guarantee. If a “Third Party” (or its successor) suffers damages resulting from errors or omissions contained in the Report, the “Third Party” is entitled to recover damages through the Professional Liability Policy, subject to the terms, conditions and limits of the policy. The Insured should maintain an errors and omissions policy for all exposures they have which are not covered by this policy.