STG Last Dollar Endorsement Guideline 2

Organizational Guidelines

STG Last Dollar Endorsement Guideline 2

Guideline Document
V 1


The 1992 Loan Policy provides under Section 9(b) of the Conditions and Stipulations that payment in part of the principal of the indebtedness shall reduce the amount of insurance pro tanto. This endorsement may be requested where the lien of the insured mortgage secures an amount in excess of the amount of insurance stated in the specific policy. We require an Explanation as to why the policy is being issued for an amount less than the amount of indebtedness.

Underwriting Requirements:

(1) Issuance of the endorsement will only be authorized if there is a reasonable explanation for issuance of the Policy for an amount less than the amount of the debt (such as where the value of the land is equal to the amount of insurance and there is other collateral). In the alternative, consideration could be given to a provision for pro rata liability equal to the ratio of the value of the land to the total collateral.
(2) A Senior Underwriter must approve issuance of the endorsement.

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):