Guideline: ALTA Endorsement 10.1 and 10.1-06 (Assignment and Date Down)
This endorsement insures the transferee of the insured mortgage and the secured note that the transfer of mortgage is valid, provided that the note has been properly endorsed and delivered to the transferee, or if the note or notes are transferable records, the insured has "control" of the single authoritative copy of each "transferable record" as these terms are defined by applicable electronic transaction laws. Unlike the Form 10 endorsement, this endorsement down dates coverage as to taxes and assessments, priority, and notices of federal tax liens or bankruptcies. Version 02/03/10 includes a definition of Assignee and a creditors’ rights exception.
Endorsement 10.1 is issued with a 1992 ALTA Loan Policy.
Endorsement 10.1-06 is issued with a 2006 ALTA Loan Policy.
DO NOT ISSUE THIS ENDORSEMENT(S) IF THERE ARE MULTIPLE BENEFICIARIES UNLESS YOU SECURE THE APPROVAL OF A STEWART SENIOR UNDERWRITER.
(1) The name of the transferee should be inserted in paragraph 1 of the endorsement
(2) The assignment must be described in paragraph 2(a).
(3) Title must be examined to determine the existence of any full or partial release, reconveyance, or discharge of the insured mortgage, or any modification thereof. Any such matter must be shown in paragraph 2(e) of the endorsement.
(4) You must determine that there are no inconsistent assignments of record. The record must reflect an assignment from the record holder or beneficiary of the mortgage.
(5) The assignment of the insured mortgage must be recorded.
(6) A tax and assessment search must be made. Any outstanding taxes or assessments that are due and payable must be excepted in paragraphs 2(b) and 2(c).
(7) Any defects, liens, or encumbrances disclosed by the search that may have priority over the insured mortgage must be excepted in paragraph 2(c).
(8) Any notices of federal tax liens or notices of bankruptcy against the owner disclosed by the public records must be excepted in paragraph 2(d). The notice of bankruptcy also must be excepted in paragraph 2(c).
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):