Bulletin: MU000019

Date:
July 17, 1996
To:
All Issuing Offices in Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Georgia, Hawaii, Idaho, Illinois, Indiana, Kansas, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Nebraska, Nevada, New Hampshire, New Jersey, New York, North Carolina, North Dakota, Ohio, Oklahoma, Rhode Island, South Carolina, South Dakota, Tennessee, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin and Wyoming
RE:
ALTA Endorsement Forms 10 and 10.1 Guidelines

Dear Associates:

ALTA Assignment Endorsements

The American Land Title Association Endorsements Form 10 (Assignment) and Form 10.1 (Assignment and Date Down) may be issued in all states except Florida, Louisiana (form approval pending), Montana (approval pending), New Mexico, Oregon, Pennsylvania, and Texas. You may contact your district manager for the filed premium charge (where applicable). You may secure these forms from STGC's Forms and Information (800-719-1901). These forms are California Land Title Association (CLTA) forms 104.12 and 104.13.

ALTA Endorsement Form 10 Guideline (Assignment) (10/21/95)

Explanation:

This endorsement insures the transferee of the insured mortgage that the transfer of mortgage is valid, provided that the secured note has been properly endorsed and delivered to the transferee.


Underwriting Requirements:

  • The name of the transferee must be inserted in paragraph 1 of the endorsement.
  • The assignment must be described in paragraph 2(a).
  • Title must be examined to determine the existence of any full or partial release, reconveyance, or discharge of the insured mortgage, or any modification of the insured mortgage. These matters must be shown in paragraph 2(b) of the endorsement. Do not issue the endorsement if the insured mortgage is fully released or discharged.
  • You must determine that there are no inconsistent assignments of record.
  • The record must reflect an assignment from the record holder or beneficiary of the mortgage.
  • The assignment of the insured mortgage must be recorded.

ALTA Endorsement Form 10.1 Guideline (Assignment and Date Down) (10/21/95)


Explanation:

This endorsement insures the transferee of the insured mortgage that the transfer of mortgage is valid, provided that the secured note has been properly endorsed and delivered to the transferee. Unlike the Form 10 endorsement, this endorsement down dates coverage as to taxes and assessments, priority, and notices of federal tax liens or bankruptcies.



Underwriting Requirements:

  • The name of the transferee must be inserted in paragraph 1 of the endorsement.
  • The assignment must be described in paragraph 2(a).
  • Title must be examined to determine the existence of any full or partial release, reconveyance, or discharge of the insured mortgage, or any modification of the insured mortgage. These matters must be shown in paragraph 2(e) of the endorsement. Do not issue the endorsement if the insured mortgage is fully released or discharged.
  • You must determine that there re no inconsistent assignments of record. The record must reflect an assignment from the record holder or beneficiary of the mortgage.
  • The assignment of the insured mortgage must be recorded.
  • A tax and assessment search must be made. Any outstanding taxes or assessments that are due and payable must be excepted in paragraphs 2(b) and 2(c).
  • Any defects, liens, or encumbrances disclosed by the search that may have priority over the insured mortgage must be excepted in paragraph 2(c).
  • Any notices of federal tax liens or notices of bankruptcy against the owner disclosed by the public records must be excepted in paragraph 2(d). The notice of bankruptcy also must be excepted in paragraph 2(c).

THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER  AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.

References

Bulletins Replaced:
MU000005 This Bulletin has been replaced by MU000019.
Related Bulletins:
None
Underwriting Manual:
11.28 Loan Policies
 
12.28 Mortgages
Exceptions Manual:
Deeds of Trust
 
Mortgages
Forms:
ALTA Endorsement 10 (Assignment)
 
ALTA Endorsement 10.1 (Assignment and Date Down)