Voxtur Analytics Corp., a North American real estate technology company, has secured the certification and insurance of its mortgage asset due diligence solution by underwriters at Lloyds of London.
This bespoke policy covers losses in the event of material errors resulting in a breach of a representation or warranty for mortgage assets, including but not limited to individual mortgages and/or mortgage servicing rights (MSRs), transacted on the platform.
More specifically, this insurance is provided to Voxtur’s capital markets division, its wholly owned subsidiary Blue Water Financial Technologies LLC, as an add-on to Blue Water’s existing all-digital pre-close, pricing, trading, transfer and quality-control services.
“With this added third-party offering, our customers will benefit from an insurance wrap. Originators looking to sell their MSRs can rely on this service knowing that their product has been thoroughly reviewed and that process in turn is insured,” says Al Qureshi, president of Blue Water.
“Furthermore, for our investor clients looking to purchase loans, this certification means that they can diligence 100% of a given loan or MSR portfolio knowing that that process is also insured,” Qureshi adds.
Representation and warranty-related buybacks constitute a notable risk to these transactions and are, therefore, currently top concerns for players in the space. Adding insurance to the Blue Water due diligence offering provides the product with the ability to hedge the very meaningful reps and warrants risk in the MSR market.