Though there have been numerous MBS deals that have had underlying mortgage loans carrying fraud insurance in the past, rating agencies have only recently started to take notice of the value of such insurance.

Last week, Fitch held a press conference about the fraud policy currently being offered by Illinois Union Insurance Co., which is a subsidiary of Ace USA. Because of some acquisitions, the insurance will eventually be underwritten by Safeco Surplus Lines Co., a unit of Safeco Corp.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.