Guideline: ALTA Junior Loan Policy Endorsement JR 1 (Supplemental Coverage) 1996

Explanation:

This form is a continuation endorsement to the Junior Loan Policy. It is generally requested at the time the insured's mortgage is executed. It will show intervening liens or deeds recorded after the Policy and it will show the insured's mortgage.

Underwriting Requirements:

You issue this Endorsement after you issue the Junior Loan Policy.

(1) Paragraph A(1): Under this paragraph you show deeds and other conveyances of the title recorded subsequent to the Date of Policy of the Junior Loan Policy. You examine title from the Date of Policy to provide this coverage.

(2) Paragraph A(2): Under this paragraph you show monetary liens found in the search of the title and in the general name search against the "Grantor" after the Date of the Junior Loan Policy. You also do your customary general name search for liens against the name of any subsequent grantee shown in a document excepted in Paragraph A(1).

(3) Paragraph B: Under this paragraph you show the insured's mortgage which has been recorded or which is furnished to you for recording. You do not need to show recording information if the insured furnishes the original mortgage to you for recording and if the insured requires immediate issuance of the Endorsement. If you receive the original mortgage for recording, you may issue Endorsement JR 2 immediately after doing your search to the most recent date possible and prior to receipt of the recording information of the insured's mortgage if the insured requires such immediate issuance. If you are requested to issue this Endorsement before the execution of the insured's mortgage, you should delete Paragraph B. If you then issue a second or later Endorsement JR 1, you should include all exceptions appearing in the prior Endorsement(s) JR 1.

(4) Paragraph C: If the insured request issuance of the Endorsement JR 2 (Revolving Credit/Variable Rate), you may mark this box. You do not need to attach a copy of Endorsement JR 2, unless the insured requires a copy. If your state law requires that the mortgage contain specific language (such as a heading) in order to secure future advances, verify that the mortgage contains the required language.

(5) Date of Endorsement: This is the date through which your examination is made. You may date the Endorsement as of the date of the insured's mortgage and subsequent to the most recent date of examination possible, if (1) the insured requires that the Endorsement be issued before the recording information is possible and before an examination through that date is possible and (2) you receive the original mortgage for immediate recording. If you are requested to issue this endorsement before the execution and delivery of the insured's mortgage for recording, delete the phrase "Date of Endorsement is the date shown above or the date of recording of the insured's mortgage."

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):

ALTA Junior Loan Policy Endorsement JR 1 (Supplemental Coverage) 1996