CLTA Trustor's Conveyance Endorsement Guideline 111.4

Explanation:

This endorsement provides an ALTA lender and the Secretary of Housing and Urban Development with assurances as to continued validity and priority of the insured deed of trust after a conveyance of an FHA project by the original trustor. FHA lenders consider this endorsement essential where title to an FHA project has been conveyed by the original trustor since there are covenants contained in the FHA regulatory agreement which provide for immediate default in the absence of an assumption agreement by the new owner approved by HUD.

Underwriting Requirements:

(1) The deed transferring the title must be of record.
(2) A search and examination of the title subsequent to the loan policy date must be made. If any intervening liens are found, they must be subordinated to the HUD lien.

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):

CLTA Mortgage Impairment After Conveyance (06-03-05) 111.4