Guideline: ALTA Endorsement 38-06 (Mortgage Tax) (12-03-12)
Upon payment of any deficiency in the Mortgage Tax, including interest and penalties, by the Insured, this endorsement insures against loss or damage sustained by reason of: (a) the invalidity or unenforceability of the lien of the Insured Mortgage as security for the Indebtedness resulting from the failure to pay, at the time of recording, any portion of the Mortgage Tax; or (b) the lack of priority of the lien of the Insured Mortgage as security for the Indebtedness resulting from the failure to pay, at the time of recording, any portion of the Mortgage Tax.
1. Issue this endorsement on loan policies only, in jurisdictions where there is a mortgage tax.
2. Confirm that the mortgage tax calculation appears to be correct and that the appropriate amount of mortgage tax was paid at the time of recording of the Insured Mortgage or the recording of any mortgage modification.
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):