CLTA Modification Endorsement Guideline 110.5

Explanation:
This endorsement provides assurances to an ALTA lender that after the deed of trust or mortgage has been modified by agreement, that said modification agreement is valid, that it properly modifies said deed of trust or mortgage and that as modified, said deed of trust or mortgage is prior to any liens or encumbrances other than those shown as superior liens on the policy or noted in the endorsement.
This endorsement provides broader coverage than the CLTA 110.4 Endorsement since it insures property of the deed of trust or mortgage as modified.
Underwriting Requirements:
(1) This endorsement may be issued after the following requirements are met:
(a) A search has been made to determine that:
      1.  there is no partial or full conveyance of the deed of trust or mortgage;
      2.  the parties to the modification agreement are the current record owners, the record trustee, and the record beneficiary under said deed of trust or mortgage and there is nothing of record affecting their status or ability to contract (the original trustor must also join if the present owner has not assumed the deed of trust with the consent of the beneficiaries); and
      3.  there are no record liens or encumbrances junior to the deed of trust or mortgage insured. If there are such junior lienholders they must either consent or subordinate to the modification.
(b) The property must be inspected and inquiry made of any parties in possession.  You must determine there has been no construction.
(2) This endorsement should not be used when the purpose of the modification is to add property as additional security.

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.

References
This guideline applies to the following form(s):
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