NJRB 5-23 CONVERTIBLE ADJUSTABLE RATE MORTGAGE LOAN ENDORSEMENT
THIS ENDORSEMENT IS ISSUED AS PART OF POLICY NUMBER _________________
STEWART TITLE GUARANTY COMPANY
The Company insures the Insured against loss or damage by reason of:
1. The invalidity or unenforceability of the lien of the Insured Mortgage resulting from the provisions therein which provide for changes in the rate of interest or the right of borrower to convert to a fixed rate mortgage.
2. Loss of priority of the lien of the Insured Mortgage as security for the unpaid principal balance of the loan not exceeding the Amount of Insurance shown in Schedule A, together with interest as changed in accordance with the provisions of the Insured Mortgage which loss of priority is caused by said changes in the rate of interest or exercise of the right to convert to a fixed rate mortgage.
"Changes in the rate of interest", as used in this endorsement, shall mean only those changes in the rate of interest calculated pursuant to the formula provided in the Insured Mortgage at Date of Policy.
There is no liability under this endorsement based on the invalidity or unenforceability of the lien of the Insured Mortgage that arises out of the transaction evidenced by the Insured Mortgage and is based upon usury law or Consumer Protection Law.
This endorsement is issued as part of the policy. Except as it expressly states, it does not (i) modify any of the terms and provisions of the policy, (ii) modify any prior endorsements, (iii) extend the Date of Policy, or (iv) increase the Amount of Insurance. To the extent a provision of the policy or a previous endorsement is inconsistent with an express provision of this endorsement, this endorsement controls. Otherwise, this endorsement is subject to all of the terms and provisions of the policy and of any prior endorsements.
No guidelines are available for this form at this time.