Guideline: ALTA Endorsement 30 (One-to-Four Family Shared Appreciation Mortgage)

Explanation:

This endorsement provides coverage for a shared appreciation mortgage.  “Shared Appreciation” is defined to mean “increases in the Indebtedness secured by the Insured Mortgage by reason of shared equity or appreciation in the value of the Land.”  A shared appreciation mortgage may be used in connection with loan workouts or other finance transactions. 

This endorsement insures against loss or damage sustained by reason of: (a) the invalidity or unenforceability of the lien of the Insured Mortgage as security for the Indebtedness caused by the shared appreciation provisions in the Insured Mortgage; or (b) loss of priority of the lien of the Insured Mortgage as security for the Indebtedness caused by the shared appreciation provisions in the Insured Mortgage.

This endorsement is available only for loan policies insuring mortgages that encumber a one-to-four family residential property.

ALTA 30-06 is designed to be issued with a 2006 ALTA Loan Policy.  ALTA 30 (07-01-21) contains modifications to align the endorsement to the terms of the 2021 ALTA Loan Policy and is designed to be issued with the 2021 Loan Policy.  Where available, use the version of the endorsement designed for the applicable policy, unless approved by a Stewart Title Guaranty Company underwriter.  It is not necessary to indicate “-06” or the parenthetical (date) on the endorsement attached to the policy.

Underwriting Requirements:

1. Confirm that the property to be insured is a one-to-four family residential property.

2. Secure and review a copy of the proposed mortgage.  Confirm that the mortgage contains provisions for shared equity or appreciation in the value of the Land.

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.

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.