NY TIRSA Last Dollar Endorsement Guideline 1995
Explanation:Purpose Of Endorsement:
The policy mount will not be reduced as the loan is paid, until the balance remaining due on the loan becomes less than the policy coverage.
Underwriting Requirements:Requirements For Issuance:
(a) Underwriter approval is required prior to issuance in every case (this is a requirement of the New York State Insurance Department);
(b) Company Counsel must review the loan documentation;
(c) The amount secured by the mortgage (and the amount of title insurance purchased) is smaller than the total amount of the loan, and the loan documents provide that payments are to be applied first to reduce the portion of the loan obligation which are unsecured (or secured by other types of property or out-of-state real property); in addition, there are also mortgage recording tax issues which must be reviewed by counsel.
Issued With The Following Policies:
Applicable to loan policies only.
10% of the unreduced (straight) mortgage premium.
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):None