Assignments: Underwriting Guidelines

In the issuance of a loan policy insuring a mortgage or deed of trust which has been assigned, the assignment must be placed of record and the assignee named as the insured under Schedule A of the policy. The requirements are the same for the issuance of a policy insuring the original mortgage or deed of trust but, in addition, the note secured by the mortgage or deed of trust must be examined to determine that the chain of endorsements on the note from the original beneficiary to the proposed insured is unbroken and not in conflict with any assignments which may have been recorded. Furthermore, satisfactory evidence of the authority of the individual executing the assignment must be obtained. A search of the public records must be made to disclose prior assignment, partial releases, modifications or other matters that could affect the deed of trust.


If the assignee requests an endorsement to an existing loan policy, care must be taken to review the underwriting requirements for each specific endorsement. If the endorsement being requested includes a change of the effective date, extreme care must be taken to verify that no matters could affect other provisions of the policy, such as unfiled mechanicís liens.


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