Bulletin: NJ000058

Dear Associates:

The New Jersey Department of Banking and Insurance has approved the use of a new Modifiable Mortgage Option Endorsement effective as of July 1, 2001. The form carries a form number of NJRB-5-65, and will be available from our forms department shortly. A sample of the endorsement is attached for your review, as is a copy of the revised pages from the rate manual adding section 10.40. Please insert the new pages into your manual.

The endorsement provides protection to the insured against invalidity, loss of priority, or unenforceability of the lien of the insured mortgage due to changes in the rate of interest, extension of the maturity date, or for the making of any future advances. The protection substantially tracks the content of N.J.S.A. 46:9-8.1. This endorsement may be requested by out-of-state lenders who are unfamiliar with the New Jersey statute.

This endorsement should be issued only in connection with a loan policy, providing the mortgage states a maximum amount that may be loaned to the borrower.

There is a charge of $50.00 for issuance of this endorsement.

If you have any questions or concerns in connection with the issuance of this endorsement, please call the state office for underwriting approval.