SitusAMC launches Securent
SitusAMC , a services and technology provider to the financial and real estate industries, has recently launched Securent , a loan defect insurance program to protect against risk associated with defects introduced in the loan manufacturing process, including underwriting defects, compliance violations, fraud and misrepresentation, and appraisal errors.
Securent covers most material underwriting defects including guideline violations, income miscalculations and data integrity. It also covers compliance violations for points and fees, TRID errors, RESPA violations, fraud, and misrepresentation by employees, borrowers and sellers. Finally, it provides errors and omissions coverage and fraud coverage for appraisal errors.
The policies protect mortgage lenders, investors and RMBS issuers as well as warehouse lenders and other mortgage market participants from liabilities and losses associated with errors, omissions, or fraud introduced in the manufacturing process.
“As profit margins tighten, mortgage market participants are more aware than ever of potential losses associated with mortgage manufacturing defects. These fears can be alleviated with Securent. Our products mitigate transactional risk and enable lenders, investors and RMBS issuers to drive superior outcomes while still being able to rest secure in the value of their investments. We look at loans as if we were buying them, just like our clients. The only difference is we are insuring them. If we are going to take the origination risk, we want to be sure every loan is independently reviewed and accurately insured. This gives our clients the comfort that claims will be paid.” – Justin Vedder, President of Securent and mortgage market veteran.
Securent utilizes a proprietary risk management model along with industry leading QC technology to assess, identify, and price the manufacturing risk on any mortgage asset. The combined technologies allow Securent to identify loans that require a full review while reducing the manual touch points on high quality/low risk loans.