Equity National First to Insure Lenders Above and Beyond CPLs

EAST PROVIDENCE, RI  – Equity National has introduced Equity ISP™(Insured Settlement Protection), an insurance product protecting the insured mortgage lender against closing fraud, defalcation and closing instruction violations.  Developed for Equity National by The Prieston Group,  the policy is insured through Lloyd’s of London and affords mortgage lenders protection above and beyond that provided by the traditional closing protection letter (“CPL”).  The insurance product is the first of its kind in the mortgage industry.

According to Jim O’Donnell, President of Equity National, lenders working with Equity National will be afforded more extensive protection against defalcation and fraud than they receive when covered only by the traditional CPL.  He notes that defalcation and theft claims, as well as closing instruction violations, are often inadequately covered by CPLs.  Equity ISP™, for example, will cover claims up to three years from the date of closing.  Most CPLs, in contrast, may only be invoked within 30 to 180 days and are non-assignable.  O’Donnell asserts that many closing instruction violations can take years, rather than days, to discover—long after the CPL has lapsed. Similarly, while many defalcation or fraud claims are limited by the standard CPL to “lien-related matters,” Equity ISP™ goes much further.

“We partnered with The Prieston Group on this after seeing a number of lenders experience very real damage where they had mistakenly believed the CPL would protect them,” said O’Donnell.  “Right now, lenders are increasing their expectations of closing agents while the title industry is simultaneously cutting back on what it will cover.   This is the only product out there right now which can address the shortcomings of the CPL to the advantage of lenders. The coverage also follows the loan and is assignable.”

Arthur Prieston, Chairman of The Prieston Group, makes it clear that this product is not for everyone.  “We are extremely cautious about who we do business with,” he said.  “This product is designed to address a much needed protection that has been missing in the industry.  Thus, we demanded a partner in the settlement services industry which uses best practices, has the highest quality of personnel and, quite simply, does business the right way.  Equity National immediately stood out as that partner.”

For more information, go to equitynational.com.

About Equity National
Equity National is a lender service provider located in East Providence, RI and Jacksonville, FL. Founded in 1989, Equity a offers variety of title search, title insurance, loan settlement and valuations services utilizing a nationwide network of real estate appraisers in accordance with Fannie Mae, Freddie Mac, and in compliance with USPAP and FIRREA regulations.  For more information, go to equitynational.com, or call 800.237.8489.

About The Prieston Group
The Prieston Group offers the only fully integrated suite of mortgage fraud protection, mitigation, and indemnification services in the industry. Called TPG Mortgage Assurance Solutions™, these services provide lender due diligence and data integrity, fraud loss insurance and repurchase protection, and legal consultation for loss mitigation and recovery. Founded in 1986, the company’s patented proprietary Lender Representation & Warranty Insurance™ has protected thousands of lenders and over $50 billion in residential loans to date. TPG has been an industry leader in fighting mortgage fraud, supporting lenders, aggregators, investors, and issuers, as well as working closely with rating agencies, industry representatives, and government and legislative agencies. For more information about The Prieston Group, please visit www.priestongroup.com. The American Mortgage Law Group, PC (AMLG) has its roots in the original Prieston Law Firm, a mortgage law practice founded in 1981. AMLG’s legal practice is focused on mortgage fraud resolution and related matters. AMLG has successfully resolved hundreds of cases and saved clients millions of dollars. Learn more at www.americanmlg.com.

Equity ISP™ is a trademark of Equity National.  ISP™ is a trademark of the Prieston Group.

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