London & European (L&E), a provider of services and solutions designed to enhance property transactions, has unveiled a new type of insurance policy for lenders, designed to cover performing loans and guarantee their securitised portfolios.
Alan Smith, managing director of L&E, said: "With the emerging dominance of non-conforming and sub-prime lenders, and the resulting explosive growth in residential mortgage-backed securitisation, there is now a new and pressing need for increased security to protect those lenders' bond values.
"Where a mortgage lender has failed to secure a loan, or secure with the correct priority, and is unable to sell or securitise the asset, then our policy will cover the consequential loss associated with the failure to operate their funding model.
"This now provides a true guarantee rather than simply an indemnity, and is a totally new and innovative application of title insurance.
"By insuring and guaranteeing the reliability of lender income, title insurance protects the value of lenders' bonds, making them a far more attractive proposition for the capital markets, while at the same time giving lenders the flexibility to take on more business and grow their profitability."
Hosted by comedian and actor Tom Allen, 34 Gold, 23 Silver and 22 Bronze awards were handed out across an amazing 34 categories recognising brilliance and innovation right across the breadth of UK general insurance.
