CLTA Collateral Assignment Endorsement Guideline 104.4

Explanation:

Provides the collateral assignee of a mortgage or deed of trust insured under a CLTA Standard Coverage Policy or an ALTA Loan Policy with assurances concerning (a) the validity of the assignment to evidence the transfer of the entire beneficial interest to the named assignee as collateral security; and (b) that no full or partial reconveyance or modification or subordination of the insured mortgage or deed of trust appears of record.

Underwriting Requirements:

DO NOT ISSUE THIS ENDORSEMENT(S) IF THERE ARE MULTIPLE BENEFICIARIES UNLESS YOU SECURE THE APPROVAL OF A STEWART SENIOR UNDERWRITER.

(1) This endorsement is to be utilized for collateral assignments of the deed of trust or mortgage.
(2) The liability under this endorsement is limited to the obligation amount of the transfer being made or the amount of the obligation being assigned, whichever is the lesser amount.
(3) If the original note has not been furnished for examination or the note is not properly endorsed to the assignee, the CLTA 104.11 Endorsement should be used.
(4) The following elements are requirements for issuance of this endorsement:
(a) A review of the original note and deed of trust must be made in order to preclude conflicts between the record assignor and true owner of the note. If the original note is not furnished for examination purposes or if the note is not properly endorsed to the assignee, the CLTA 104.10 Endorsement should be used;
(b) A search for reconveyances, subordinations, modifications, etc. of the insured deed of trust or mortgage; and
(c) A general index search of the assignor and all intervening assignors for federal tax liens, bankruptcies, incompetencies, etc..