Fraudulent Mortgages Insuring Agreement

The Fraudulent Mortgages Insuring Agreement (also known as Insuring Agreement G) covers losses resulting directly from the financial institution accepting or acting upon real property mortgages, deeds of trust, and like instruments pertaining to real property on which a signature is legitimate but defective because it was obtained through fraud, trick, or under false pretenses. (Note: Insuring Agreement E only provides coverage if the document is forged, altered, lost or stolen.)

Coverage Summaries of Bond Insuring Agreements

Claims Example
  • A borrower obtains a loan secured by land jointly owned with his wife. After a year of making payments, the borrower falls behind and the bank files for foreclosure on the land. During the proceedings, it is proven that the wife did not “knowingly” sign the mortgage for the property and thought she was signing another unrelated document. The bank is precluded from foreclosing on the property.


Notwithstanding any language to the contrary, nothing contained herein constitutes nor is intended to constitute an offer, inducement, promise, or contract of any kind. All coverage descriptions and claims examples are provided for informational and educational purposes only and are not a representation as to coverage for any particular claim and are not represented to be error free. Coverage for any claim is determined upon the specific facts of the claim, the terms and conditions of the policy and applicable law. For details on the coverage provided by your specific contract of insurance, please refer to your policy. Coverage is subject to underwriting guidelines and may not be available in all states. Limits may be capped for underwriting reasons. Any links to any sites which are not originated by ABA Insurance Services Inc. (ABAIS) are provided only as a courtesy and are not intended to nor do they constitute an endorsement by ABAIS of the linked materials.