CLTA Impairment of Lien by Subordination Agreement Endorsement Guideline 111.2

Organizational Guidelines

CLTA Impairment of Lien by Subordination Agreement Endorsement Guideline 111.2

Guideline Document
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This endorsement provides an insured lender with assurance against loss by reason of any impairment of their lien as a result of the execution of the subordination agreement subordinating the lender's lien to another lien except to the extent of such subordination.

Underwriting Requirements:

(1) The issuance of this endorsement requires a full title search.
(2) If the title search reveals either of the following items, underwriting personnel at Stewart Title Guaranty must be consulted:
(a) A lender subordinates his lien to some other interest such as an easement, lease, or lien which only affects a portion of the land secured by the insured deed of trust or mortgage, without reasonable consideration for the subordination. The lenders right to enforce the lien on the balance of the obligation against the remaining land may be challenged; or
(b) Circuitry of the lien situation (i.e., A has first lien deed of trust or mortgage; B has a lease subordinate to A's deed of trust or mortgage but prior to a subsequent deed of trust or mortgage to C. If A subordinates his deed of trust or mortgage to C's deed of trust or mortgage there is no satisfactory rule of law as to the priority relationship between A's deed of trust or mortgage and B's lease).

Any revision to this form requires approval of a Stewart Title Guaranty Company underwriter. 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