NJRB 5-65 Modifiable Mortgage Option Endorsement

MODIFIABLE MORTGAGE OPTION ENDORSEMENT

Attached to Policy No. ______

Issued By

STEWART TITLE GUARANTY COMPANY

                        The Company hereby insures the owner of the indebtedness secured by the insured mortgage against loss or damage sustained or incurred by the insured by reason of:

1.       The invalidity or unenforceability of the lien of the insured mortgage resulting from the provisions contained in the (Modifiable Mortgage Option Rider or other name which this product is marketed) ("Agreement") attached thereto which provide for changes in the rate of interest and extension of the maturity date of the loan;

2.       Loss of priority of the lien of the insured mortgage as security for the unpaid principal balance of the loan together with interest as changed in accordance with the provisions of the Agreement, which loss of priority is caused by said changes in the rate of interest and extension of the maturity date of the loan; and

3.       The invalidity, unenforceability, or loss of priority of the lien of the insured mortgage as to Future Advances (as defined in the Agreement) which the insured makes pursuant to the provisions of the Agreement; provided, however, that no coverage is given by this paragraph 3 as to any Future Advances made after the insured has actual knowledge of any sale or transfer of all or any portion of the estate or interest encumbered by the insured mortgage.

                        This policy shall provide insurance coverage for the amount of all Future Advances that are outstanding and unpaid at any given time (up to the Amount of Insurance) notwithstanding the fact that prior Future Advances may have been made and previously repaid.

                        This endorsement is made a part of the Policy and is subject to all of the terms and provisions thereof and of any prior endorsements thereto.  Except to the extent expressly stated, it neither modifies any of the terms and provisions of the Policy and any prior endorsements, nor does it extend the effective date of the Policy and any prior endorsements, nor does it increase the face amount thereof.

                        STEWART TITLE GUARANTY COMPANY

                                                                                                                                                                        BY:                                                                                                                                                                    

                                Authorized Signatory

Date: