What Is Fidelity Insurance?
Fidelity insurance indemnifies a company for specific types of financial fraud. Most notably, fidelity policies ensure against losses arising from the dishonest acts of a company’s employee. Coverage also is available for the losses a company may sustain for reliance upon certain types of loan documentation containing forged signatures or which have been fraudulently altered. The available benefits cover losses which result directly from the employee dishonesty, forged signatures, or fraudulent alterations. These and other coverages are available in “”Mortgage Bankers Bonds”” written specifically for the mortgage industry. How a Fidelity Claim May Present Itself In most cases, a mortgage lender first learns it has sustained a fidelity loss when a borrower defaults on his or her loan and further investigation reveals that a loan officer or other employee committed dishonest acts in the loan process or that third parties caused the submission of documents containing forged signatures or
