LA ALTA Endorsement 2 (Truth-in-Lending)
This endorsement may be attached to mortgage policies only. It protects the insured lender against rescission under the Federal Truth in Lending Act. This endorsement is rarely requested. In fact, if you are requested to issue one, I would recommend calling underwriting counsel to discuss the situation.
The right of rescission may apply if
- the lien is a security interest in the borrower's principal dwelling
- the loan is not a purchase money mortgage
- the borrower is a natural person.
The underwriting requirements are as follows:
- Verify that property is not residential.
- Determine whether mortgagor-owner is a corporation, limited liability company, or partnership.
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