MI Disbursement Endorsement

Explanation:

The Disbursement Endorsement is issued with an ALTA Loan Policy when the Insured requests increased coverage as additional disbursements are made under its construction loan.  Each disbursement after the inital disbursement is insured by Disbursement Endorsement.  The Disbursement Endorsement does the following:

1. changes the original effective date of the policy for title matters;

2. increases the amount of title insurance coverage by the amount of the current loan disbursement;

3. changes the effective date for lien coverage (should be the date of the Swown Statement); and

4. sets forth instruments affecting the insured property that have been recorded since the last update.

The Disbursement Endorsement is issued until the contruction project is completed and the construction loan funds are fully disbursed.

MI Disbursement Endorsement 1 is issued with a 1992 ALTA Loan Policy.  MI Disbursement Endorsement 2006  is issued with a 2006 ALTA Loan Policy.

Underwriting Requirements:

You must review the required sworn statements and waivers and update title before issuing the Pending Disbursement Endorsement. Any instruments affecting the insured property must be added as an exception to the Policy

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