STG Assignment of Rents Endorsement Guideline 1
Explanation:Lenders occasionally request that the loan policy insure certain recorded interests that are taken as additional security to the insured mortgage. The most common additional security interest, other than a security interest under the Uniform Commercial Code, is an assignment of rents (leases).
Underwriting Requirements:(1) This endorsement is to be used to provide certain coverages with respect to a separate assignment of rents (leases). If the assignment appears in the mortgage instrument, the "Assignment of Rents Endorsement (contained in mortgage)" should be used.
(2) The endorsement provides insurance that the assignment of rents (leases) is properly executed and that the public records do not disclose any prior assignments of these same rents (leases).
(3) The assignment of rents (leases) must be properly executed by the owner of the estate or interest covered by the insured mortgage and there must not be any prior assignment of rents of record or same must be excepted in Schedule B of the policy.
(4) Prior mortgages or deeds of trust must be examined to determine if they contain assignments of rents or leases. Separate Schedule B Exceptions should be made for such assignments.
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):