$ASQConvertedTOPDF 060731104037 Date Down …

1 date down . ENDORSEMENTS. (NON-CONSTRUCTION). date down Endorsements extend the effective date of a previously-issued loan policy. They most frequently are requested when a mortgage is being assigned or modified. An underwriter should be consulted if a date down endorsement to an owner's policy has been requested. The issuance of a date down endorsement is typically a two-step process. 1. Issuance of a preliminary date down endorsement (which extends the effective date , reflects the updated status of title and requests needed clearance); followed - as part of or after the closing - by: 2. Issuance of a final date down endorsement (which extends the effective date to cover the recording of the mortgage assignment/modification, reflects the updated status of title and deletes references to clearance which has been received.)

2 When preparing a date down endorsement , it is essential that new exceptions, waivers and modifications be reflected both in regular Schedule B on the office opinion and on the date down endorsement . This is necessary so that the title examination remains complete and the file accurate for future reference as a prior. Billing issues should be considered and addressed with the customer, if necessary, as soon as practical. Payment of the title premium and recording charges, if at all possible, should occur prior to or simultaneously with the issuance of the final endorsement . 1 date down Endorsements 7/2000. I. NOTE A copy of the policy to which the date down endorsement is to apply is required for this process.

3 If not available internally, the customer should be asked to provide a copy of the policy. If no copy of the policy can be obtained you should contact an underwriter of the company. If a prior date down endorsement already has been issued, verify that a copy of the prior date down endorsement is in the file and that the appropriate changes have been noted. II. Order the updated searches. The tax records should be consulted in order to verify that the tax number(s) have not changed, or been discontinued since the date of the policy/prior endorsement . Searches, documents, etc., should be requested in the usual manner.

4 Remember to search additional names, if any. III. Examine the searches, documents, etc., as if you were performing a standard later date examination. SCHEDULE A - Make any changes as may be appropriate for the particular file. All modifications should be properly documented so that those who subsequently deal with the file can determine what was done. Take particular care to determine if part of the land has been released from the lien of the insured mortgage or if part of the land has been taken by condemnation since the original date of the policy. Typically a date down endorsement is ordered for a mortgage policy to cover a modification of the mortgage.

5 This modification should be shown on schedule A with the mortgage insured. SCHEDULE B - Beginning with the new tax exception, raise, waive and modify exceptions as appropriate. Document all changes by use of office notes. 2 date down Endorsements 7/2000. Creditors' Rights and the 1970 ALTA Loan Policy: The 1970 form of ALTA Loan Policy did not contain a creditors' rights exclusion. As a result, when a date down endorsement is being issued to a 1970 ALTA Loan Policy and the mortgage modification presents a creditors' rights risk, a creditors' rights exception should be raised both on Schedule B and on the endorsement .

6 An assignment of mortgage or a mortgage modification which only extends the maturity date and makes no other change does not present a creditors' rights risk. Mortgage modifications which do or may present a creditors' rights risk include modifications which: Increase the amount of the indebtedness;. Increase the interest rate or add new forms of interest;. Capitalize unpaid interest;. Add real estate to the lien of the mortgage;. Add previously-existing and unrelated obligations to the borrower's obligation under the mortgage; and Direct new or previously undisbursed funds to persons other than the borrower. In most instances, it will be helpful to consult with an underwriter before actually raising the creditors' rights exception.

7 In any event, an underwriter must be consulted if the customer requests that the exception, once raised, be waived or endorsed over. IV. endorsement FORMS Select the appropriate date down endorsement . The endorsement forms and a description of their general uses are as follows: date down 1L - date down endorsement For Loan Policy/Modification of Mortgage (see page 10). date down 1A - date down endorsement For Loan Policy/Assignment Of Mortgage/Change Of Insured (see page 11). date down 1B - date down endorsement For Loan Policy/Modification Of Mortgage to Increase Amount Of Mortgage (see page 12). date down 1 - date down endorsement For Owner's Policy (see page 13).

8 V. Complete the text of the endorsement , as appropriate for the file. 3 date down Endorsements 7/2000. Schedule A Changes: PRIOR EFFECTIVE date OF POLICY. Enter the policy effective date . If, however, a prior final date down endorsement was previously issued, enter the new effective date from the last such endorsement . NEW EFFECTIVE date OF POLICY. Enter the date being covered by the updated searches. If a final date down endorsement is being prepared, the extended effective date should be the date of the recording of the instrument(s) which the customer has requested be covered. PARTY IN TITLE. Show the name of the PARTY IN TITLE, as applicable from: The policy The most recently issued date down endorsement The examination of the updated searches.

9 AMENDMENT(S) TO MORTGAGE. If issuing a preliminary date down endorsement , TO COME normally should appear. When issuing the final date down endorsement , amend the language to reflect the recording information and make any other appropriate changes (for example, to reflect the precise name of the instrument or to provide a brief description of how the mortgage has been amended). 4 date down Endorsements 7/2000. Schedule B Changes: Add or delete any schedule B exceptions or notes as would be appropriate based on the examination of the updated searches. Don't forget to change the real estate tax exception. Additional Information: The following paragraphs are the requirements and clearance that are suggested to be included in the date down endorsement if appropriate: THE COVERAGE AFFORDED BY THIS endorsement WILL NOT.

10 COMMENCE PRIOR TO THE date ON WHICH ALL CHARGES. PROPERLY BILLED BY THE COMPANY HAVE BEEN PAID. THE PROPOSED MORTGAGE MODIFICATION/ASSIGNMENT. SHOULD BE RECORDED AND A LATER date COVERING THE. RECORDING SHOULD BE REQUESTED SO THAT WE MAY. UPDATE OUR SEARCHES AND ISSUE A REVISED date down . endorsement . THIS endorsement IS SUBJECT TO SUCH. FURTHER EXCEPTIONS AS THEN MAY BE DEEMED NECESSARY. WE SHOULD BE FURNISHED THE FOLLOWING AND THIS. endorsement IS SUBJECT TO SUCH FURTHER EXCEPTIONS. AS MAY BE DISCLOSED THEREBY: (1) AN ALTA LOAN AND EXTENDED COVERAGE OWNER'S. POLICY STATEMENT EXECUTED BY ALL PARTIES HOLDING. TITLE TO THE LAND DURING THE SIX MONTHS PRECEDING THE.