STG Non-Merger Endorsement Guideline 1
Explanation:This endorsement insures against invalidity of a lien because of acquisition of title by the mortgagee or a related person.
Underwriting Requirements:(1) A Senior Underwriter must approve issuance of the endorsement.
(2) The conveyance should be made to a separate related person, if possible, and not to the lender.
(3) The conveyance must contain clear non-merger language and the debt must not be extinguished.
(4) All possible subordinate interests must be considered, and as a general rule, must be released. These include tenants, lien claimants, and other mortgagees. If not released, the Endorsement should not insure against a claim of merger by such person.
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.
This guideline applies to the following form(s):