ALTA Endorsement 6.2 (Variable Rate Mortgage - Negative Amortization) (7-1-21)

ALTA 6.2 VARIABLE RATE MORTGAGE—NEGATIVE AMORTIZATION ENDORSEMENT

This endorsement is issued as part of

Policy Number __________

issued by

STEWART TITLE GUARANTY COMPANY

1.      As used in this endorsement, “Changes in the Rate of Interest” mean those adjustments in the rate of interest calculated pursuant to the formula provided in the Insured Mortgage or the loan documents secured by the Insured Mortgage at the Date of Policy.

2.      The Company insures against loss or damage sustained by the Insured by reason of:

a.      the invalidity or unenforceability of the lien of the Insured Mortgage resulting from:

i.       Changes in the Rate of Interest;

ii.       interest on interest; or

iii.      the addition of unpaid interest to the principal balance of the loan.

b.      the loss of priority of the lien of the Insured Mortgage as security for the principal balance of the loan, together with interest as changed in accordance with the provisions of the Insured Mortgage or the loan documents secured by the Insured Mortgage, interest on interest, or any unpaid interest which was added to the principal balance in accordance with the provisions of the Insured Mortgage, which loss of priority results from:

i.       Changes in the Rate of Interest;

ii.       interest on interest; or

iii.      the addition of unpaid interest to the principal balance of the loan.

3.      This endorsement does not insure against loss or damage, and the Company will not pay costs, attorneys’ fees, or expenses, based upon  usury law or Consumer Protection Law.

This endorsement is issued as part of the policy. Except as it expressly states, it does not (i) modify any of the terms and provisions of the policy, (ii) modify any prior endorsements, (iii) extend the Date of Policy, or (iv) increase the Amount of Insurance. To the extent a provision of the policy or a previous endorsement is inconsistent with an express provision of this endorsement, this endorsement controls. Otherwise, this endorsement is subject to all of the terms and provisions of the policy and of any prior endorsements.

[Witness clause]

[Date]

STEWART TITLE GUARANTY COMPANY

By: ______________________________
         [Authorized Signatory]