Guideline: ALTA Endorsement 20 and 20-06 (First Loss-Multiple Parcel Transactions)

Explanation:

This endorsement is effective if the Collateral (any real and personal property that secures the loan) includes at least two parcels of land. This endorsement, unlike many prior proprietary endorsements, contains no threshold or deductible (such as the commonly used 10% deductible), other than impairment that diminishes the value of the Collateral below the Indebtedness. Unlike many prior proprietary endorsements, this endorsement also does not require the lender to pursue its remedies against the insured land. This endorsement acknowledges that the title insurer will not require maturity of the Indebtedness, pursuit of remedies against any of the Collateral (including the land), or pursuit of its remedies against any guaranty, bond or insurance policy.

Endorsement 20 is issued with a 1992 ALTA Loan Policy.  Endorsement 20-06 is issued with a 2006 ALTA Loan Policy.

Underwriting Requirements:

We require the following:

  1. Verify the Indebtedness is secured by at least two tracts of land. We do not require that the Loan Policy insure all tracts.
  2. Issue only with a Loan Policy. This Endorsement is not designed for issuance with an Owner's Policy.
  3. This endorsement does not contain any blanks that must be completed.

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.