NM Assignment of Rents/Leases Endorsement Guidelines 62

Explanation:

The Assignment of Rents/Leases Endorsement (NM 62) insures the lender that there are no defects in the execution of an assignment of a lessor's interest in a particular lease or rents, and that there are no earlier assignments shown in the public records, unless they are excepted in Schedule B. This endorsement is the same as the CLTA Endorsement 104.6.

Underwriting Requirements:

(1) You may issue the Assignment of Rents/Leases Endorsement (NM 62) if the land is not residential property containing four or fewer dwelling units, and if the endorsement is attached to a Loan or Leasehold Loan Policy. You may not issue this endorsement with an Owner's Policy. NMAC 13.14.8.25.

(2) Refer to the current Assignment of Rents/Leases in paragraph 1 of the endorsement. The Assignment to the insured lender should be shown in Schedule B (Part I) or in Schedule B Part II. You must determine that the assignor properly executed the Assignment of Rents/Leases.

(3) If your search of the public records discloses a prior assignment of rents or leases, you must except to the prior assignment in Schedule B, unless it has been released. If an unreleased mortgage contains such an assignment, the exception to the mortgage should refer to the assignment of rents or leases.

(4) You must charge $100 for the endorsement. NMAC 13.14.10.45.

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 62 Assignment of Rents or Leases Endorsement (ALTA 37-06, Rev. 2012)