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BIS Announces Partner-Carrier for Lenders Misrepresentation Insurance

Posted on 30 Dec 2010

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Bakerjian Insurance Services (BIS) has announced that ProSight Specialty Insurance has partnered with the agency as the exclusive carrier for their recently launched Lenders Misrepresentation Insurance™ (LMI™).

ProSight was formed earlier this year by CEO Joe Beneducci and a team of senior executives with decades of experience in the insurance industry. The company, which has an “A” rating from A.M. Best, is a specialty property and casualty insurer whose focus is to create and deliver specialized risk-management solutions through limited, exclusive distribution partners.

“The result gives our clients a real competitive edge.”

“We’re proud to be able to team up with ProSight,” said Stephen Bakerjian, President and CEO of BIS and originator of the LMI program. “To have a domestic ‘A’ rated carrier gives us a real competitive advantage in the marketplace. And it gives our clients the deep capital strength and stability they need for their own financial peace of mind.”

LMI protects mortgage lenders against the damage that can result from loans being put back by their investors if material financial misrepresentation is found in a borrower’s loan file. “Even just one repurchase demand can damage a lender’s balance sheet, their reputation, and even their business,” noted Bakerjian. “And having to issue a repurchase demand can damage an investor’s relationship with their seller and add administrative overhead and hassle. It’s a lose-lose situation.” LMI gives lenders an option beyond loan loss reserves to protect against this damage.

“LMI is insurance,” Bakerjian emphasized, “so it offers protection multiple times the premium and the risk is transferred to our carrier. Loan loss reserves offer only dollar-for-dollar protection and the risk is retained by the lender. With LMI, the lender now has a choice.”

 The client value of LMI is enhanced by the BIS-ProSight partnership. ProSight was founded on the principle that a superior insurance company is grounded in helping its clients succeed first. To achieve that goal, they have built a state-of-the-art technology platform, hired experienced underwriting and claims teams, and developed disciplined business category experts, so the company understands not just insurance but also the complex dynamics of the businesses they insure.

“ProSight’s innovative approach to insurance solutions perfectly mirrors our innovative approach to mortgage banking risk-management solutions,” said Bakerjian. “The result gives our clients a real competitive edge.”

About Bakerjian Insurance Services

Bakerjian Insurance Services (BIS) specializes in proprietary risk-management solutions for the mortgage banking industry. The principals of BIS have been in the insurance industry for nearly 30 years, have experience with some of the largest insurance companies in the world, and have focused on mortgage banking and mortgage fraud for more than a decade. BIS is the exclusive national program manager for Lenders Misrepresentation Insurance (LMI). For more information, visit For more information about their carrier-partner, visit