STG Pari Passu Endorsement Guideline 2
Explanation:"Pari Passu" is a latin phrase meaning "by equal progress; equably; ratably; without preference". This phrase is used where two or more mortgages or beneficiaries agree to equal priority and to share ratably out of the collateral. The documentation must be carefully reviewed to verify such agreement between or among the lenders and to verify the disclosure of priority in the documents to be recorded.
Underwriting Requirements:(1) A Senior Underwriter must review the loan documents to verify the equal nature of the priority of the mortgages.
(2) We should issue a Pari Passu Endorsement providing for the modification of insurance as to priority and provision addressing payment in the event of loss.
(3) In Schedule B or a notation should refer to the loan document agreement providing for the nature of priority.
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):