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Affirmative Language Endorsement (CATIC Form E-15-06)
Purpose of Endorsement
The CATIC E-15-06 Affirmative Language Endorsement is available for a Loan Policy insuring a mortgage on residential property, and insures against loss or damage resulting from any inaccuracy in the following affirmative representations made in the endorsement:
taxes or municipal assessments are current and the next installment is not yet due and payable;
there are no existing violations of any covenants, agreements, conditions, restrictions, reservations or rights set forth in the Loan Policy’s Schedule B, and the instruments creating such matters do not contain provisions for forfeiture or reversion; and
none of the improvements located on the Land at Date of Policy encroach upon any easements or rights of way set forth in the Loan Policy’s Schedule B, and the exercise of any rights pursuant to such easements or rights of way does not interfere with the use of those improvements.
Underwriting Requirements
As to taxes and assessments:
- Identify all taxes and assessments affecting the property and verify that these taxes and assessments are current and that the next installment will not be due on or before the Date of Policy. Any delinquent taxes or assessments must be paid in full and any recorded tax liens released.
As to covenants, agreements, conditions, restrictions, reservations and rights: - Review the covenants and restrictions appearing as numbered Exceptions in the policy’s Schedule B to verify that none of these provide for forfeiture or reversion under any circumstances.
- Obtain a completed CATIC (A-100) Owner’s Affidavit confirming that there are no existing violations of any covenants or restrictions.
As to easements or rights of way: - Review the completed Owner’s Affidavit and any available survey to verify that no improvements encroach into any of the easements reflected in the policy’s Schedule B.
If any of the representations in the endorsement are incorrect, contact a member of VATC’s underwriting staff prior to issuing the endorsement.
Construction Endorsement (CATIC Form E-16-06)
Gap Endorsement (CATIC Form E-24-06)
Purpose of Endorsement
The CATIC E-24-06 Gap Endorsement covers loss when a lien or encumbrance is recorded between the date of the last title search or title bringdown and the date of the Insured Mortgage’s recording, and as a result that intervening lien or encumbrance gains priority over the Insured Mortgage.
Underwriting Requirements
This endorsement should be issued only upon request of the lender or the lender’s attorney.
- The title search must be updated to as close to the date and time of actual closing as possible to verify that no additional encumbrances have been recorded which may interfere with the priority of the mortgage to be insured. Up to 10 business days before closing is usually acceptable, provided you are not aware of any financial problems or disputes or lawsuits pending involving the owner of the property or the transaction. If you are aware of potential problems, a title update will need to be performed immediately prior to the closing.
- The title and mortgage documents creating the insured interest must be recorded on the day of the closing or as soon as possible the next business day.
- A Gap Indemnity from the property owner may be required by a member of VATC’s underwriting staff if the most recent search is more than ten days prior to closing or there is some other cause for concern. The Gap Indemnity form is included with these instructions.
- Insert the date and time of the closing into the open fields in the first paragraph of the endorsement.
Please contact a member of VATC’s underwriting staff if there are questions about the issuance of this endorsement.
Correction Endorsement (CATIC Form E-60-06)
Purpose of Endorsement
This endorsement allows for the correction of certain common errors made in the issuance of a Loan Policy without the need to order an endorsement from CATIC.
Limitations of Use
This endorsement can be used to endorse only Mortgagee Policies insuring 1-to-4 family residential property, including common interest community units and individual vacant building lots. If you need to have corrections made to a policy issued for industrial or commercial property, you must contact CATIC’s Industry Relations Department.
This endorsement can be used to correct certain common errors and/or to validate the policy coverage notwithstanding certain errors or actions. Those errors and actions are
(a) the omission or incorrect variation of “successors and assigns” language after the name of the Insured;
(b) the addition or correction of the Date of Policy by the Insured rather than the issuing agent;
(c) the absence of recording information for the Insured Mortgage;
(d) the absence of any reference to an assignment of mortgage recorded as part of the closing; and
(e) the omission of certain endorsements required by the lender.
If any other changes or corrections are needed, you must contact CATIC’s Industry Relations Department.
Underwriting Requirements
1. Fill in the number of the Loan Policy being endorsed.
2. If the lender has requested the correction or insertion of the mortgage recording information, complete subparagraph c. with that information.
3. If the lender has requested that the policy reference an assignment of mortgage that was recorded as part of the closing, complete the information in subparagraph d.
NOTE that if an assignment of mortgage was made at any time AFTER the closing and the lender is requesting an endorsement, contact CATIC’s Industry Relations Department.
4. Send the original endorsement to the requesting lender. Send a copy of the endorsement to:
Industry Relations Department
CATIC
101 Corporate Place
Rocky Hill, CT 06067
Phone: (860) 529-8855 or (800) 842-2216
Fax: (860) 563-4833
e-mail: []
Conformity Endorsement (CATIC Form E-61-06)
Purpose of Endorsement
This endorsement allows for the correction of certain common errors made in the issuance of a title policy in order to have the policy conform to the information available from the Public Records regarding the transaction and the interest being insured.
Limitations on Use
This endorsement may be used to correct errors in both Owner Policies and Mortgagee Policies insuring either residential, commercial or industrial property; but it can be used to correct only the specific errors or omissions referred to in the endorsement.
Underwriting Requirements
1. Fill in the number of the policy being endorsed.
2. If the Date of Policy is incorrect or missing, complete subparagraph a. with the correct date. The correct date is normally the date of recording of the insured instrument.
3. If the name of the Insured(s) is missing or incorrect in the policy, complete subparagraph b. with the correct name(s). The correct name(s) is/are the name(s) that appear in the insured instrument.
4. If the property address or parcel reference is incorrect in the policy, complete subparagraph c. with the correct address or reference. The correct address or reference is the one used in the legal description attached to the insured instrument.
5. FOR A MORTGAGEE POLICY ONLY, if the Amount of Insurance is incorrect, complete subparagraph d. with the correct amount which should be the principal amount of the mortgage.
NOTE that if the Mortgagee Policy was not issued simultaneously with an Owner Policy in a greater amount than the correct amount of the mortgage, and the corrected Amount of Policy is greater than the amount for which the policy was originally issued, you must contact CATIC for a calculation of any additional premium that might be due.
6. The use of this endorsement to replace or correct the Property Description attached to the policy is limited to the situation where the Property Description attached to the policy does not contain the same description as the insured instrument.
If the insured instrument, whether deed or mortgage, was recorded with an incorrect description, steps must be taken to correct the instrument BEFORE the policy can be endorsed. In this instance, you must contact a member of VATC’s underwriting staff prior to issuing the endorsement.
7. Send the original endorsement to the Insured and a copy to CATIC at the following address:
Industry Relations Department
CATIC
101 Corporate Place
Rocky Hill, CT 06067
Phone: (860) 529-8855 or (800) 842-2216
Fax: (860) 563-4833
e-mail: