In a recent article, we talked about a few endorsements that can be used in an owner’s policy of title insurance. In this article, we are going to discuss a few endorsements that can be used in a lender’s title insurance policy.
This 2006 ALTA loan policy endorsement is used when a single debt is secured by mortgages on multiple parcels of land insured by multiple policies (most likely in situations where properties are in different states with different title insurance premium rates, thus different policies). The endorsement ties all of the policies together so that the Company’s liability under each policy is the total amount of all the insured mortgages. The Company’s maximum liability under all of the policies, however, is also the total amount of the insured mortgages. The Company’s liability under each policy is still limited by the Conditions of the policy except that it is not limited to the amount of insurance specified in Schedule A of the policy. The ALTA 12.1 is used when a state has a mandated liability limitation for a single risk.
This endorsement is used when a mortgage secures both a revolving credit facility and a term loan facility. It provides a lender with protection against loss as to priority of the term loan facility because of the reductions and subsequent increases of the revolving loan facility.
This Endorsement is ordinarily issued when a Mortgage is assigned and the Assignee wants protection against loss in the event that the assignment is not valid and enforceable. The Endorsement recognizes the Assignee as the Insured and provides specific coverage against loss in the event that the assignment fails to vest title to the Insured Mortgage in the Assignee OR in the event there have been modifications or releases of the Mortgage that are not identified in the Policy or the Endorsement. This endorsement does not advance the effective date of the policy.
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For more information about lender’s title insurance endorsements, request a copy of our endorsement book. The team at Commercial Partners Title can help you through the entire process and make it as effortless as possible for you. We will put our decades of experience to work for you to ensure the success of your transaction. Reach out to our commercial title experts at our office in downtown Minneapolis today to learn more about our services and how we can help facilitate your transaction!