STG Reverse Mortgage Endorsement 1

This form should not be used if a comparable ALTA version is available. If a comparable ALTA version is available, the most current version of the ALTA form available in each state should be used, unless approved by a Stewart underwriter.

ENDORSEMENT ATTACHED TO AND MADE A PART

OF POLICY OF TITLE INSURANCE

SERIAL NUMBER ____________

STEWART TITLE GUARANTY COMPANY

HEREIN CALLED THE COMPANY

Order No:

The Company insures the owner of the indebtedness secured by the insured mortgage against loss or damage sustained by reason of:

1. The invalidity or unenforceability of the lien of the insured mortgage resulting from the provisions therein which provide for:

a. interest on interest;
b. changes in the rate of interest; or
c. the addition of unpaid interest to the principal balance of the loan.

2. Loss of priority of the lien of the insured mortgage as security for the principal balance of the loan, including any unpaid interest which was added to principal in accordance with the provisions of the insured mortgage, interest on interest, advances of principal for payment of interest as defined in the mortgage loan agreement or note, or interest as changed in accordance with the provisions of the insured mortgage, which loss or priority is caused by:

a. changes in the rate or interest;
b. interest on interest; or
c. increase in the unpaid principal balance of the loan resulting from the addition of unpaid interest.

"Changes in the rate of interest:, as used in this endorsement shall mean only those changes in the rate of interest calculated pursuant to the formula provided in the insured mortgage at Date of Policy.

The insurance provided by this Endorsement is not subject to Paragraph 3(d) of the Exclusions from Coverage.

The Company hereby insures the insured against loss or damage which the insured shall sustain due to the failure of subsequent advances to have the same priority over liens, encumbrances and other matters disclosed by the public records as do advances secured by the insured mortgage as of the Date of Policy, except for the following matters, if any, occurring subsequent to the Date of Policy:

a. Federal tax liens.
b. Taxes, assessments, costs, charges, damages and other obligations to the government secured by statutory liens;
c. Bankruptcies affecting the estate or interest of the vestee prior to date of the advances.
d. Liens, encumbrances, conveyances and other matters actually known to the insured prior to the advance;

This endorsement does not insure against loss or damage based upon (a) usury, or (b) any consumer credit protection or truth-in-lending law.

The total liability of the Company under said Policy and any endorsements thereof shall not exceed, in the aggregate, the Amount of Policy stated in Schedule A and costs, attorney's fees and expenses which the Company may become obligated to pay by the terms of the Conditions and Stipulations of this Policy.

This Endorsement is made a part of the Policy and is subject to all the terms and provisions thereof and all endorsements thereto. Except to the extent expressly stated herein this Endorsement does not modify any of the terms and provisions of the Policy and does not change the Date of Policy or increase the Amount of Policy shown in Schedule A. This Endorsement is subject to and does not modify the Exceptions from Coverage in the Policy and terms of any Endorsements to the Policy.

Stewart title Guaranty Company