CLTA Obligatory Advance Endorsement Guideline 111.11
Explanation:Provides the lender with insurance as to the validity of a deed of trust or mortgage containing a revolving line of credit providing for obligatory advances.
Underwriting Requirements:(1) Title personnel must review the loan agreement, promissory note and/or deed of trust or mortgage to make sure that the documents disclose that a revolving line of credit is being created.
(2) The loan agreement must provide that the lender is obligated to make advances as long as the borrower is not in default under the terms of the loan.
(3) Any questions should be directed to the appropriate Stewart Title Guaranty underwriting personnel.
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):