Aggregate Excess of Loss Mortgage Insurance
Aggregate excess of loss mortgage insurance is typically used by mortgage lenders to economically cover catastrophic risk. This structure works equally well on portfolios or in captive insurer situations.
The mortgage insurer insures the portion above the lender’s fixed percentage of loss (the lender stop loss). The mortgage insurer will cover losses up to an agreed upon maximum amount (the insurer stop loss).
Individual loan coverage and stop loss limits will be adapted to each lender’s specific needs.
