NM First Loss Endorsement Guideline 58
Explanation:The First Loss Endorsement (NM 58) may be attached to a Loan Policy on land that is not one to four-family residential property to insure a loan with collateral consisting of multiple tracts. The endorsement is designed to provide coverage on a loss (as defined) in excess of a stated percentage of the Loan Policy, even though the lender has not attempted to collect against other collateral. This endorsement is typically issued in connection with the Loan Policy Aggregation Endorsement (NM 60).
Underwriting Requirements:We require the following:
1. Do not issue on one to four family residential property.
2. The percentage in the endorsement should be at least 10% of the policy.
3. A Senior Underwriter must approve issuance of the endorsement.
4. The endorsement premium shall be $25.00.
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):