NM Partial Coverage Endorsement Guideline 26

Explanation:

This endorsement is designed for use with a loan policy when the amount of the policy requested is less than the principal amount of the debt secured by the mortgage.

For example, a mortgage may encumber two or more parcels but the policy requested does not cover all of the tracts. Or, a mortgage may be secured by both real and personal property and the policy can only be issued covering the real property.

Procedure: See Regulation 13 NMAC 14.7.8.1.

Underwriting Requirements:

(1) Obtain a written representation from the proposed insured addressed to Stewart Title Guaranty Company and Agent that advises there is other collateral securing the loan, and identifies the other collateral.

(2) The policy amount must be the value of the covered land or the amount of the loan or loans insured, whichever is the lesser.

The underwriting guidelines contained herein have been provided for general reference. The facts, circumstances, and location of the subject property should be considered when determining the issuance of the requested form or endorsement. Please note that all of the forms and endorsements included in this system may not be available in all states. Accordingly, please contact the appropriate Stewart Title Guaranty Company underwriting personnel in order to determine availability.

Compliance with the underwriting guidelines contained herein in no way obligates Stewart Title Guaranty Company to issue any form or endorsement.

This guideline applies to the following form(s):

NM Form 26 Partial Coverage Endorsement