STG Convertible Variable 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.

CONVERTIBLE VARIABLE RATE MORTGAGE ENDORSEMENT

Attached to and Made a Part of

Policy of Title Insurance

Serial Number __________

Issued by

STEWART TITLE GUARANTY COMPANY

The Company hereby 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 change in the rate of interest and/or the borrower's option to convert the loan to a fixed rate mortgage.

(2) Loss or priority of the lien of the insured mortgage as security for the unpaid principal balance of the loan, together with interest as changed in accordance with the provisions of the insured mortgage, which loss of priority is caused by the changes in the rate of interest and/or the borrower's exercise of the borrower's option to convert the loan to a fixed rate mortgage.

"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.

"Option to convert the loan", as used in this endorsement, shall mean only the option to convert the loan to a fixed rate of interest calculated pursuant to the formula provided in the insured mortgage at Date of Policy.

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

This endorsement is made a part of the policy and is subject to all of the terms and provisions thereof and of any prior endorsements thereto, except that the insurance afforded by this endorsement is not subject to Section 3(d) of the Exclusions From Coverage. Except to the extent expressly stated, it neither modifies any of the terms and provisions of the policy and any prior endorsements, nor does it extend the effective date of the policy and any prior endorsements, nor does it increase the face amount thereof.

Signed under seal for the Company, but this Endorsement is to be valid only when it bears an authorized countersignature.