NM Revolving Credit Endorsement Guideline 17

Explanation:

This endorsement provides automatic coverage as to enforceability and priority of a mortgage lien for advances made pursuant to a revolving credit or future advances loan and advanced subsequent to the date of policy. It may be issued either at the same time as the Loan Policy or subsequently at the request of the Insured.

Rate: See Regulation 13 NMAC 14.10.12.

Underwriting Requirements:

(1) The mortgage or deed of trust must clearly state that it secures future advances, or a revolving line of credit, or a revolving credit agreement

(2) If the loan documents allow the lender to make advances after the loan balance is paid down to zero, then the loan documents must provide that advances made thereafter are secured.

(3) The mortgage must clearly state a maximum principal amount.

(4) Do not issue on construction loans unless underwriting approval is obtained.

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):

None