Essent Guaranty, a mortgage insurer founded to provide private capital to America's housing finance system, has added Clarity of Coverage, a new endorsement to its mortgage insurance coverage.

Clarity of Coverage is an endorsement to the company’s new master policy that provides insured lenders and policy beneficiaries a confidence that mortgage insurance claims will be processed in a transparent manner and evaluated fairly.

According to the Essent Guaranty, the Clarity of Coverage coverage reduces lenders’ exposure to mortgage insurance claims being unfairly denied for immaterial misrepresentations, underwriting errors, and missing documents.

Essent’s Clarity of Coverage will be applicable to every loan the company insures for the life of the coverage.

Fannie Mae and Freddie Mac have also approved the Essent Master Policy with Clarity of Coverage endorsements for use in connection with loans sold to them.

Essent Guaranty president and CEO Mark Casale said by offering Clarity of Coverage as an endorsement to the master policy, the company has made a binding commitment to fair practices in mortgage insurance.

"With Clarity of Coverage, lenders can be confident that the benefits of Essent insurance will be there when needed," Casale said.

Essent chief business officer Jeff Cashmer said that Essent’s Clarity of Coverage commitments are tailored to how lenders do business.

"We address underwriting errors, appraisal variances, investigative practices, missing documents,
and other areas in need of clarity and consistency," Cashmer said.