Variable Rate Endorsement (Negative Amortization) (ALTA 6.2)

ALTA 6.2 is designed for use when negative amortization is a feature as it provides for the loss of priority of the lien of the insured mortgage by reason of “interest on interest” or where unpaid interest is to be added to the unpaid balance of the loan. Because the charging of “interest on interest” may not be permitted in a number of states, lenders require specific assurances for that matter. The use of this endorsement, however, is limited to states in which interest on interest is legal. If you have any further question in the use of any of these endorsements, contact Agents National Title’s underwriting counsel.

A sample ALTA Endorsement 6.2 form.



Variable Rate Endorsement (Negative Amortization) (ALTA 6.2): Underwriting Guidelines