Endorsements
Development
Rights (New York City)
Insures
that all "parties-in-interest" under the Zoning
Resolution are bounded by the Declaration of Zoning Lot
Restrictions and that the Zoning Lot and Development Agreement
("ZLDA") validly transfers floor area development
rights. It also insures an easement for light and air
and a negative covenant not to build over and above the
transferor's building if provided in the ZLDA.
Requirements:
All "parties-in-interest" under the New York
City Zoning Resolution must join in or consent to the
development rights transfer. The Declaration of Restrictions,
ZLDA, and any waivers are to be recorded. An easement
of light and air and a negative covenant not to build
must be granted by the ZLDA. Mortgages on the burdened
parcel(s) are to be subordinated to the easement of light
and air (Owner's and Loan Policies).
Premium:
$50.00
Fairway
Assures
that the post-policy transfer of an interest in an insured
partnership will not terminate policy coverage.
Requirements:
None (Owner's Policy).
Premium:
20% of the unreduced owners premium.
Fannie
Mae Balloon Mortgage
Insures
against loss of priority due to the exercise of the Conditional
Right to Refinance and the extension of the loan term.
Requirements:
Standard Fannie Mae mortgage form (Loan Policy).
Premium:
$50.00
First
Loss
For
losses exceeding ten percent of the Amount of Insurance,
the Company will not require, prior to making a claim,
either acceleration of the indebtedness or the exercise
of remedies against other collateral.
Requirements:
Insured in connection with multi-site transactions (Loan
Policy).
Premium:
10% of the unreduced mortgage premium.
Industrial
Development Agency or Similar Public Benefit Corporation
Transfer to Insured Beneficial Owner
Affords
the benefits of a policy issued to an IDA (or similar
Public Benefit Corporation) as of its original date to
its grantee provided that the grantee is the "Beneficial
Owner" of the property conveyed to the IDA (or similar
Public Benefit Corporation) or its nominee.
Requirements:
None (Owner's Policy).
Premium:
$50.00
Joint
and Several Liability
Coinsuring
title insurers jointly and severally assume up to a specified
amount of loss.
Requirements:
Coinsured transaction (Owner's and Loan Policies).
Premium:
$1.00 per $1,000 of the joint and several coverage
per coinsurer.
Junior
Loan Policy Endorsement 1
Endorsement
1 updates a Residential Limited Coverage Junior Loan Policy/Short
Form Residential Limited Coverage Junior Loan Policy to
include recording information for the mortgage and provide
limited gap coverage. Endorsement 2, intended to be issued
with each Policy, affords variable rate and revolving
credit insurance.
Requirements:
Issued in conjunction with a Residential Limited Coverage
Junior Loan Policy or Short Form Policy, which insures
a second or other junior mortgage lien on a one-to-four
family residence or condominium unit for an amount not
to exceed $150,000.
Premium:
$50.00 for Endorsement 1. No charge for Endorsement 2.
Junior
Loan Policy Endorsement 2
Endorsement
1 updates a Residential Limited Coverage Junior Loan Policy/Short
Form Residential Limited Coverage Junior Loan Policy to
include recording information for the mortgage and provide
limited gap coverage. Endorsement 2, intended to be issued
with each Policy, affords variable rate and revolving
credit insurance.
Requirements:
Issued in conjunction with a Residential Limited Coverage
Junior Loan Policy or Short Form Policy, which insures
a second or other junior mortgage lien on a one-to-four
family residence or condominium unit for an amount not
to exceed $150,000.
Premium:
$50.00 for Endorsement 1. No charge for Endorsement 2.
Land
Same As Survey
Insures
that the legal description of the insured land is the
same as that delineated on a specified survey.
Requirements:
An updated, certified survey (Owner's and Loan Policies).
Premium:
$50.00
Last
Dollar
Insured
mortgage secures less than the full amount of a credit
facility, payment made to reduce the amount of indebtedness
are deemed applied for the first portion of the indebtedness
that is in excess of the Amount of Insurance set forth
in Schedule A of the policy.
Requirements:
Mortgage must be reviewed to ensure that the secured amounts
are to be repaid last and are not to be readvanced. (Loan
Policy).
Premium:
10% of the unreduced mortgage premium.
Limited
Liability Company (LLC)
Limited Liability Partnership (LLP)
Extends
the benefits of the policy as of its original date to
a LLC or LLP succeeding to the interest of the Insured
by operation of law.
Requirements:
Need proof of conversion to a LLC or a LLP (Owner's Policy)
Premium:
$50.00
Manufactured
Housing Unit
The
term "land" as defined in the policy is amended
to include a manufactured housing unit.
Requirements:
Manufactured housing is to be located on the land at Date
of Policy. (Owner's and Loan Policies).
Premium:
$50.00
Market Value Rider (Owner's Extended Protection)
Policy
insures against loss or damage not exceeding the market
value of the premises at the time of loss.
Requirements:
The insured must be a natural person in occupancy of residential
property containing no more than four dwelling units,
including a residential condominium or cooperative unit
(Owner's Policy).
Premium:
10% of the ALTA Owner's policy premium or 5% of the policy
premium for an Owner's Extended Protection Policy.
Mezzanine
Financing
Provides
for payment of a loss under an Owner's policy insuring
a real property owning entity or lessee to be made to
a Mezzanine Lender pledged partnership or membership interests
in that entity. Affords the lender a form of "Fairway",
"First Loss", and "Non-Imputation"
endorsement coverage.
Requirements:
Attach to the Owner's policy insuring the real property
owner or lessee. The insured under the Owner's policy
must countersign the endorsement.
Premium:
30% of the premium paid for the related Owner's policy.
Mortgage
Tax
Insures
against loss or damage sustained by the insured if all
mortgage recording tax for the insured mortgage has not
been paid.
Requirements:
Mortgage and related documents must be reviewed (Loan
Policy).
Premium:
$50.00
Non-Imputation
Insures
that the Company will not deny liability to the insured
by reason of knowledge imputed to it through a partner,
shareholder, or member by operation of law.
Requirements:
Issued with an Owner's policy insuring the interest of
a person or entity purchasing an interest in a corporation,
partnership or other entity which owns real property.
The amount of insurance may not be less than the value
of the real property apportioned to the purchaser's percentage
interest in the entity. Affidavits of the persons whose
knowledge is in question and indemnities in support thereof
are required (Owner's Policy).
Premium:
20% of the Owner's policy premium.
Option
Insures
the validity and enforceability of an option to purchase.
Requirements:
The option or memorandum of option must be recorded
(Owner's policy).
Premium:
The policy to be issued at regular fee policy premium
rates must be in an amount not less than the down payment
specified in the contract to an amount not exceeding the
contract price and the cost of contemplated improvements
and other development and construction costs.
The
premium for the endorsement when issued with a policy
without a TIRSA Leasehold or TIRSA Cooperative endorsement
is computed at the regular Owner's policy rate. When the
policy includes a TIRSA Leasehold or TIRSA Cooperative
endorsement, the charge is 30% of the regular Owner's
policy rate for the insurance not exceeding the amount
of the Owner's policy. Continuation searches to downdate
the policies are $200 each.
Partial
Release of Mortgaged Premises
Affords
assurances that a previously insured mortgage remains
a valid and enforceable lien notwithstanding the release
of part of the mortgaged premises and that the priority
of the insured mortgage is not affected thereby.
Requirements:
Review of Release and existing policy (Loan Policy) .
Premium:
$150.00
Planned
Unit Development
Affords
assurances against outstanding common charges and assessments,
rights of first refusal to purchase, and against the consequences
of either an encroachment of a unit or a violation of
restrictive covenants.
Requirements:
Provide any required waiver of a right of first refusal
and consent to mortgage. Confirm that there are no outstanding
common charges or assessments. (Owner's and Loan Policies).
Premium:
$50.00
Residential
Mortgage
Affords
assurances in connection with recorded covenants and restrictions,
easements and rights of way.
Requirements:
Mortgage must encumber one-to-four family residential
property. An updated, certified survey is to be reviewed
in conjunction with recorded easements and restrictive
covenants (Loan Policy).
Premium:
$50.00
Reverse
Mortgage
Insures
the priority and enforceability of the lien of a Reverse
Mortgage as security for the payment of principal indebtedness,
shared appreciation, and accrued but unpaid or compound
interest. Provide a means to determine policy liability
in the event of a loss.
Requirements:
Compliance with Real Property Law Sections 280 or 280-a.
Mortgage recording tax exemption affidavit must be provided
(Loan Policy).
Premium:
$50.00
Revolving Credit (RCE-1) - Residential Revolving Credit
Endorsement
Assures
that a credit line mortgage will not, except as to matters
noted in each endorsement, lose lien priority as loan
proceeds are advanced and readvanced, so long as the insured
lender has no actual knowledge of the sale or transfer
of the property and there has been no event of default.
RCE-1
and RCE-3 afford protection against mechanics liens. RCE-1,
RCE-2 and RCE-3 insure against mortgage tax being imposed
after the aggregate amount of advances exceeds the face
amount of the mortgage.
Requirements:
Compliance with Tax Law Section 253-b and Real Property
Law Section 281. To issue RCE-1, and to comply with the
Tax Law, the mortgage must encumber a one-to-six family,
owner-occupied residential property. To issue RCE-3, the
mortgage must be for a term of no more than three years
and not be a building loan mortgage (Loan Policy).
Premiums:
10% of the unreduced mortgage premium to issue RCE-1,
RCE-2 or RCE-4. 20% of the unreduced mortgage premium
to issue RCE-3
Revolving
Credit (RCE-2) - Commercial Revolving Credit Endorsement
for Commercial Credit Line Mortgages Which Secure a Maximum
Principal Indebtedness of Less Than $3,000,000
Assures
that a credit line mortgage will not, except as to matters
noted in each endorsement, lose lien priority as loan
proceeds are advanced and readvanced, so long as the insured
lender has no actual knowledge of the sale or transfer
of the property and there has been no event of default.
RCE-1
and RCE-3 afford protection against mechanics liens. RCE-1,
RCE-2 and RCE-3 insure against mortgage tax being imposed
after the aggregate amount of advances exceeds the face
amount of the mortgage.
Requirements:
Compliance with Tax Law Section 253-b and Real Property
Law Section 281. To issue RCE-1, and to comply with the
Tax Law, the mortgage must encumber a one-to-six family,
owner-occupied residential property. To issue RCE-3, the
mortgage must be for a term of no more than three years
and not be a building loan mortgage (Loan Policy).
Premiums:
10% of the unreduced mortgage premium to issue RCE-1,
RCE-2 or RCE-4. 20% of the unreduced mortgage premium
to issue RCE-3
Revolving
Credit (RCE-3) - Commercial Revolving Credit Endorsement
(Limited Term Special Coverage) for Commercial Credit
Line Mortgages Which Secure a Maximum Principal Indebtedness
of Less than $3,000,000
Assures
that a credit line mortgage will not, except as to matters
noted in each endorsement, lose lien priority as loan
proceeds are advanced and readvanced, so long as the insured
lender has no actual knowledge of the sale or transfer
of the property and there has been no event of default.
RCE-1
and RCE-3 afford protection against mechanics liens. RCE-1,
RCE-2 and RCE-3 insure against mortgage tax being imposed
after the aggregate amount of advances exceeds the face
amount of the mortgage.
Requirements:
Compliance with Tax Law Section 253-b and Real Property
Law Section 281. To issue RCE-1, and to comply with the
Tax Law, the mortgage must encumber a one-to-six family,
owner-occupied residential property. To issue RCE-3, the
mortgage must be for a term of no more than three years
and not be a building loan mortgage (Loan Policy).
Premiums:
10% of the unreduced mortgage premium to issue RCE-1,
RCE-2 or RCE-4. 20% of the unreduced mortgage premium
to issue RCE-3
Revolving
Credit (RCE-4) - Commercial Revolving Credit Endorsement
for Commercial Credit Line Mortgages Which Secure a Maximum
Principal Indebtedness of $3,000,000 or More
Assures
that a credit line mortgage will not, except as to matters
noted in each endorsement, lose lien priority as loan
proceeds are advanced and readvanced, so long as the insured
lender has no actual knowledge of the sale or transfer
of the property and there has been no event of default.
RCE-1
and RCE-3 afford protection against mechanics liens. RCE-1,
RCE-2 and RCE-3 insure against mortgage tax being imposed
after the aggregate amount of advances exceeds the face
amount of the mortgage.
Requirements:
Compliance with Tax Law Section 253-b and Real Property
Law Section 281. To issue RCE-1, and to comply with the
Tax Law, the mortgage must encumber a one-to-six family,
owner-occupied residential property. To issue RCE-3, the
mortgage must be for a term of no more than three years
and not be a building loan mortgage (Loan Policy).
Premiums:
10% of the unreduced mortgage premium to issue RCE-1,
RCE-2 or RCE-4. 20% of the unreduced mortgage premium
to issue RCE-3
Successor
in Ownership of Indebtedness
Affords
the benefits of the policy as of its original date to
the purported assignee of an insured mortgage.
Requirements:
None (Loan Policy).
Premium:
$50.00
Survey
Loan Policy
One To Four Family
Insures
against loss or damage by any violation, variation, encroachment
or adverse circumstance that would have been disclosed
by an accurate survey.
Requirements:
Land must be used as a one-to-four family residence.
A survey affidavit is required (Loan Policy).
Premium:
10% of the unreduced mortgage premium
