Guideline: ALTA Master Residential Loan Policy Schedules A and B, Residential Loan Certificate and Addendum 1992
ALL VERSIONS OF THE ALTA MASTER RESIDENTIAL LOAN POLICY HAVE BEEN DECERTIFIED AND SHOULD NOT BE ISSUED.
The Master Residential Loan Policy is issued to a lender making a loan secured by a one-to-four family residential lot or condominium. The policy insures against the invalidity or unenforceability of the lien of the mortgage and against loss or damage should the priority of the mortgage be other than as shown in the policy. The insuring provisions of the policy are broad. However, their coverage is limited by the Exceptions in Schedule B, the Exclusions from Coverage and the Conditions and Stipulations of the policy.
In other ALTA policy forms (except the Short Form Residential Loan Policy) all of the provisions of the policy are contained within the policy itself. The Master Policy uses a different format.
One Master Policy is issued to a lender customer. This Master Policy contains all of the Exclusions and Conditions and Stipulations contained in a standard ALTA Loan Policy form. It also contains a Schedule B which excepts to certain defects, liens and encumbrances. However, certain specific coverage is given with regard to these matters. Coverage may include violation of building restrictions, damage from the use of easements, encroachments and damage to the land from the exercise of mineral rights. Title risks that are unacceptable to the insurer are shown in an Addendum to the policy.
Additional coverage by certain standard endorsements may be added merely by checking appropriate boxes on the Certificate.
When a loan has been closed a lender receives a Certificate of Title relating to that specific loan. The Certificate supplements the Master Policy to complete insurance coverage as to that loan.
A desirable feature of the Master Policy is that the Certificate may be easily reviewed by the lender and requires reduced file space.
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.