ALTA Endorsement 6.2 (Variable Rate - Negative Amortization) (7-1-21)

ALTA Endorsement 6.2 (Variable Rate - Negative Amortization) (7-1-21)

This Endorsement is Issued as Part of Policy Number ______________________

Issued By
Stewart Title Guaranty Company

1.      As used in this endorsement, “Changes in the Rate of Interest” mean those adjustments in the rate of interest calculated pursuant to the formula provided in the Insured Mortgage or the loan documents secured by the Insured Mortgage at the Date of Policy.

2.      The Company insures against loss or damage sustained by the Insured by reason of:

a.      the invalidity or unenforceability of the lien of the Insured Mortgage resulting from:

i.       Changes in the Rate of Interest;

ii.       interest on interest; or

iii.      the addition of unpaid interest to the principal balance of the loan.

b.      the loss of priority of the lien of the Insured Mortgage as security for the principal balance of the loan, together with interest as changed in accordance with the provisions of the Insured Mortgage or the loan documents secured by the Insured Mortgage, interest on interest, or any unpaid interest which was added to the principal balance in accordance with the provisions of the Insured Mortgage, which loss of priority results from:

i.       Changes in the Rate of Interest;

ii.       interest on interest; or

iii.      the addition of unpaid interest to the principal balance of the loan.

3.      This endorsement does not insure against loss or damage, and the Company will not pay costs, attorneys’ fees, or expenses, based upon usury law or Consumer Protection Law.

Date: ______________________