Bulletin: FL2012005

Dear Associates:

The Florida Office of Insurance Regulation has approved for use in Florida, effective immediately, the American Land Title Association (ALTA) Endorsements listed below.  These forms are largely designed to better coordinate with the 2006 ALTA Loan and Owner’s Policies already approved for use in the state.  They should also be easier for consumers to understand.

ALTA 14-06 (Future Advance - Priority)
This endorsement insures against (1) invalidity or unenforceability of the insured mortgage as security for Advances; (2) lack of priority of the lien of the insured mortgage as security for Advances; and (3) invalidity or unenforceability of the mortgage because of Re-Advances and repayments, lack of outstanding debt before an Advance, and failure to comply with legal requirements for Advances; (4) invalidity or unenforceability of the insured mortgage because of adjustment of interest or addition of interest to principal, and (5) loss of priority of the insured mortgage caused by adjustment of interest rates and addition of interest to principal.

ALTA 14.2-06 (Future Advance - Letter of Credit)
This endorsement is designed for insurance of a mortgage securing a letter of credit or letter of credit reimbursement agreement.

This endorsement insures against (1) invalidity or unenforceability of the insured mortgage as security for Advances; (2) lack of priority of the lien of the insured mortgage as security for Advances; and (3) invalidity or unenforceability of the mortgage because of Re-Advances and repayments, lack of outstanding debt before an Advance, and failure to comply with legal requirements for Advances.

ALTA 14.3-06 (Future Advances - Reverse Mortgage)
This endorsement insures against (1) invalidity or unenforceability of the insured reverse mortgage as security for Advances; (2) lack of priority of the lien of the insured reverse mortgage as security for Advances; and (3) invalidity or unenforceability of the reverse mortgage because of Re-Advances and repayments, lack of outstanding debt before an Advance, and failure to comply with legal requirements for Advances; (4) failure of the insured mortgage to state the term for Advances, (5) failure of the insured reverse mortgage to state the maximum amount secured by the insured mortgage, (6) failure of the mortgagors to be at least 62 years old at Date of Policy, (7) invalidity or unenforceability of the insured mortgage because of adjustment of interest or addition of interest to principal, and (8) loss of priority of the insured mortgage caused by adjustment of interest rates and addition of interest to principal.  For purposes of the endorsement, interest includes lawful interest based on net appreciation.

For any agents that use AIM+ or AFW, please contact PropertyInfo Customer Care so they may implement these forms into your system.

If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.

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