Bulletin: MU000039

Dear Associates:

Revised ALTA Short Form Residential Loan Policy

The American Land Title Association has amended the ALTA Short Form Residential Loan Policy. The changes were made 10/21/2000.

The ALTA also amended the Master Residential Loan Policy and Certificate.

These changes made technical changes in the language in the forms, and also added the ALTA Endorsement Form 9 (Restrictions, Encroachments, Minerals) as an additional optional endorsement.

These changes also provide that the ALTA Short Form Residential Loan Policy can be printed to incorporate all applicable ALTA endorsements, without checking a box.

We are in the process of preparing and filing these revised forms, where filing is necessary.

We recommend that you use the ALTA Short Form Residential Loan Policy form that automatically incorporates the endorsements. This will reduce the possibility of error in marking the endorsement boxes. An example of this form is available through the references section at the end of this bulletin.

Errors in Policy Preparation

Use of the ALTA Short Form Residential Loan Policy will reduce the possibility of errors. That means you will spend less time correcting policies after closing. Be aware of some of the common errors that still may occur if you use the revised

ALTA Short Form Residential Loan Policy: (1) amount of insurance less than loan amount; (2) mortgage amount incorrect; (3) insured's name incomplete or incorrect; and, (4) borrower's name does not match mortgage.

Market the ALTA Short Form Residential Loan Policy

This form reduces time and expenses for both you and the lender in preparation and review. We recommend you market it to your lenders: many will want it once they understand it.

An example of a lender that requires the ALTA Short Form Residential Loan Policy, where it is available is World Savings. Please be aware of this when closing World Savings loan transactions.