Guideline: ALTA Endorsement 8.1 and 8.1-06 (Environmental Protection Lien)

Explanation:

This endorsement is only issued in conjunction with a Loan Policy covering primarily residential property.
Paragraph (a) insures that there are no environmental protection liens filed in the public records which have priority over the lien of the insured mortgage unless excepted in Schedule B.
Paragraph (b) insures that there are no state statutes which provide that liens filed after the Date of Policy would have priority over the lien of the insured mortgage, except for those specifically excepted under paragraph (b).

Endorsement 8.1 is issued with a 1992 ALTA Loan Policy.  Endorsement 8.1-06 is issued with a 2006 ALTA Loan Policy.

Underwriting Requirements:

(1) This endorsement may be issued only on property which is improved, zoned, restricted, or under construction for, residential purposes.

(2) You are required only to review your local records for liens filed. You are not required to check the federal district court clerk's office.

(3) Because some states have not enacted the Uniform Federal Lien Registration Act or similar legislation, Stewart Title Guaranty Company may periodically mail to you liens filed by the EPA. You should consider these liens in the examination of the title.

(4) Our endorsement contains excluded matters agreed to by Fannie Mae. Therefore, it is not necessary to except to various state statutes. Our forms either state "No Exception" or contain one of the following additional exceptions:

Arizona- A.R.S. Sections: 48-309; 49;

Arkansas - Arkansas Code Annotated, Sections: 8-7-501 through 8-7-525; 14-54-901 through 14-54-904; 15-57-301 through 15-57-321; 15-58-101 through 15-58-510; 8-7-801 through 8-7-815; and 8-7-901 through 8-7-908;

Connecticut - Conn. Gen. Stat. §22a-452a (may be deleted if the land is exclusively residential real estate);

Georgia - Ga. Code Ann. §12-13-12;

Illinois- . 65 ILCS 5/11-31-1-F;

Iowa - Iowa Code Ann. §455B.396;

Louisiana - La. Rev. Stat. Ann. §13:2575 (applicable only to municipalities of 300,000 or more); R.S. 30:2281; R.S. 30:2204; R.S. 30:2225; R.S. 33:1236(21) (grass cutting);

Maine - 38 M.R.S.A. Sections 1370 and 1371;

Maryland - Md. Environ. Code Ann. §7-266;

Massachusetts - Mass. Gen. Laws Ann. ch. 21E §13 (may be deleted if greater part of land devoted to single or multi-family housing);

Michigan -  the following citations should be reflected in paragraph (b) of the endorsement: MCL 324.11143 et seq.; MCL 324.20101 et seq.; MCL 324.21301 et seq. Also, upon request by FNMA, the citations may be shown as follows:

MCL 324.11143(3) also codified as MSA 13A.11143(3)
MCL 324.20138(2)(a), (4) and (6) also codified as MSA 31A.20138(2)(a), (4) and (6)

Minnesota - Minn. Stat. Ann. §§514.67; 115B.41; 115B.412;

New Hampshire - N.H. RSA 147-B;

New Jersey - "This Endorsement will not insure against liens recorded pursuant to the Spill Compensation Control Act, N.J.S.A. §58:10-23.11 et seq. subsequent to the issuance of this Policy";

New Mexico - 3-48-7 NMSA 1978; 69-25B-8 NMSA 1978;

North Dakota - N.D. Cent. Code Sec. 38-14.2-14 (Liens for reclamation on private lands.)

Ohio - Ohio Rev. Code Ann. §3767.41; §§3734.122, 3734.20, and 3734.22 (applicable only if not a single family residence; may be deleted if improved single family residence);

Pennsylvania - 32 P S Sec. 5101 et seq.;

South Carolina - S.C. Code Ann. §48-1-350;

Texas - Tex. Health & Safety Code §§361.194, 342.007, 342.008; Texas Local Gov't. Code §214.0015(b), (d), and (e), 214.001; and Tex. Nat. Res. Code §134.150, if applicable;

Washington - RCW 70.121.140;

Wisconsin - W.S.A. Chapter 292.81 (may be removed if needed as appropriate for residential property: for residential property, the statutory lien would not affect a “valid prior lien” as that is defined in the statute (purchase money and second mortgages (including as refinanced))

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.