PA Reverse Annuity Mortgage 1220


STEWART TITLE

GUARANTY COMPANY

ENDORSEMENT

Attached to and made a part of Policy Number


A. The Company acknowledges that the insured mortgage secures a reverse annuity (RAM) and insures the owner of the indebtedness secured by the insured mortgage against loss or damage sustained by reason of:

1. The invalidity or unenforceability of the lien of the Insured mortgage resulting from the provisions therein which provide for: (a) changes in the rate of interest; (b) interest on interest; or (c) the addition of unpaid interest to the principal balance of the loan.

2. Loss of priority of the lien of the insured mortgage as security for the principal balance of the loan, including any unpaid interest which was added to the principal in accordance with the provisions of the insured mortgage, interest on interest or interest as changed in accordance with the provisions of the insured mortgage, which loss of priority is caused by (a) changes in the rate of interest; (b) interest on interest; or (c) increases in the unpaid balance of the loan resulting from the addition of unpaid interest.

B. Notwithstanding paragraph 8(d) of the Conditions and Stipulations of this Policy, but subject to paragraph 7 of the Conditions and Stipulations, the amount of liability of the Company under the above numbered Policy shall fluctuate to equal the outstanding principal indebtedness and interest not exceeding the Amount of Insurance, secured by the insured mortgage as sums are advanced, readvanced, paid and repaid pursuant to the terms and provisions of the RAM. Furthermore, notwithstanding item 3(d) of the Exclusions from Coverage, this Policy insures that the lien of the insured mortgage as it secures sums advanced and readvanced pursuant to and in accordance with the terms and provisions of the RAM after the Date of Policy shall have the same priority over liens, encumbrances and other matters as if such advances had been made as of the original Date of Policy except for:

1. Taxes and assessments;

2. Federal tax liens, notice of which is filed prior to the date of such advances;

3. Liens or charges created under any environmental protection laws, ordinances or regulations;

4. Liens, encumbrances, or other matters, the existence of which are actually known to the insured prior to the date of such advances; or

5. Any statutory lien for services, labor or material.

C. Provided, however, this endorsement is subject to the Exclusions from Coverage, the exceptions in Schedule B of the Policy and does not insure the validity, enforceability or priority of the lien of the insured mortgage with respect to:

1. Any sums advanced after the filing of a petition for relief under the Bankruptcy Code, 11 USC, by, or on behalf of or with respect to the mortgagor;

2. Usury or any consumer credit protection or truth-in-lending law;

3. The failure of the note or mortgage to state a definite term;

4. The failure of the mortgage to state the maximum of principal and interest that it secures;

5. The expiration of a statute of limitations or period of laches; or

6. The failure to provide counseling as defined in 26 CFR Part 206 from a housing counseling agency approved by the U.S. Department of Housing and Urban Development.

This endorsement is issued as part of the Policy. Except as it expressly states, it does not (i) modify any of the terms and provisions of the Policy, (ii) modify any prior endorsements, (iii) extend the Date of Policy, or (iv) increase the Amount of Insurance. To the extent a provision of the Policy or a previous endorsement is inconsistent with an express provision of this endorsement, this endorsement controls. Otherwise, this endorsement is subject to all of the terms and provisions of the Policy and of any prior endorsements to it.

In Witness Whereof, STEWART TITLE GUARANTY COMPANY has caused to be hereto affixed, duly attested, its corporate seal.

Countersigned:


_______________________________________

Authorized Countersignature

TIRBOP-PA ENDORSEMENT 1220 (Reverse Annuity Mortgage Endorsement) (01/01/2005)
LOAN POLICY ONLY

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