Lender Representation

All lenders, as it relates to lending money on residential properties will require a mortgageeā€™s title insurance policy, to be paid for, by the borrower. A standard mortgagee title insurance policy does not cover everything. Many things are erroneously left unprotected.

 

Most lenders will require that you also obtain endorsements to your standard mortgagee title insurance policy. The endorsements that Georgia lenders most commonly require property owners to purchase are as follows:

  • ALTA 9.0 (Restrictions, Easements, Minerals) It protects against loss or damage sustained as a result of present violations of enforceable covenants, notices of violations of covenants or restrictions relating to environmental protection that have been recorded and filed in the public records, encroachments unto land by existing buildings that are located on adjoining land.
  • ALTA 8.1 (Environmental Protection Lien Endorsement) When a loan is secured by a Security Deed on property that is used primarily for residential purposes, this endorsement provides the insured lender with protection against loss or damage sustained by reason of loss of priority of the lien of the insured Security Deed over environmental protection liens recorded in the public records or created pursuant to certain state statutes.
  • ALTA 6.1 (Variable Rate Mortgage Endorsement) It affords the insured lender protection against loss or damage sustained by reason of invalidity, loss of priority or unenforceability of the lien of the insured mortgage due to changes in the rate of interest.