Construction loans are booming – risk management may seem less critical. Even now, mechanic’s liens are increasing and title insurers are reducing related coverage. Exclusion 3(a) is used against lenders by title insurers. It relates to matters created, suffered, assumed or agreed to by the insured – leaving insurers an understandably wide exit door. Risk management is critical now -while we’re still in a boom – to protect lenders later when the market takes a downturn – as it always does.

Find out about the traps that title insurers use against lenders and implement risk management steps to avoid them. Learn more ways to use escrow instructions to protect the lender and shift more liability to escrow agent and title insurer.