In our continuing series on ALTA endorsements for both lender and owner title insurance policies, today we are going to explore the ALTA endorsements for variable rate mortgages.
What are Variable Rate Mortgage Endorsements?
These endorsements insure the insured lender against invalidity, unenforceability or loss of priority of the lien of the Insured Mortgage by reason of provisions of the mortgage which allow for changes in the rate of interest. The Mortgage, itself, must contain a provision which indicates that the interest rate is subject to change, but does not need to spell out the specifics of either the interest rate or the formula by which the interest rate is calculated.
The ALTA 6.2 Endorsement also insures the insured lender against invalidity, unenforceability or loss of priority of the lien of the insured mortgage by reason of interest on interest or the addition of unpaid interest to the principal balance. It does not increase the face amount of the Policy and it specifically excludes usury, consumer credit protection and Truth-in-Lending laws.
Commercial Underwriters in Minneapolis, MN
If you’re looking for commercial title insurance underwriting in the Twin Cities – we can help! For several decades, Commercial Partners Title Company has been providing premier title underwriting services to our clients. Our team consists of escrow agents, title closers, underwriters, and more who are ready to help you through the specifics of your transaction. Reach out to us today at our offices located in downtown Minneapolis to learn more about the extent of our services and see how we can help you with your next commercial transaction.