1. Common Endorsements for Lenders

2. Definition of Endorsement
Provision added to an insurance contract altering its scope or application
Issues that are not covered or insured over in a standard or extended policy

3. LTAA 3R, CLTA 100 Protects lender against loss resulting from
CC&R’s which can impair the lien of the mortgage
Present violations of CC&R’s
Encroachments onto or off of the insured land

4. LTAA 3R, CLTA 100 (cont.)
Future violations of CC&R’s occurring prior to foreclosure of the insured deed of trust
Damage to improvements due to encroachment onto easements or due to extraction of minerals
Final court order requiring removal of any of insured’s improvements from adjoining lands

5. LTAA 5, CLTA 116 (modified)
Provides assurance to lender as to nature of improvements (e.g. vacant, existing residential, etc.)
CLTA 116 shows the purported street address − LTAA 5 does not

6. ALTA 9, CLTA 100.2
Much the same as the LTAA 3R, but adds coverage as to
Violation of set backs
Liens and easements created by CC&R’s
Environmental liens

7. ALTA 3, CLTA 123.1: Zoning − Vacant
States applicable zoning ordinances and amendments
Shows uses allowed under the stated classification
Title company requires a zoning letter to issue this endorsement

8. ALTA 3.1, CLTA 123.2: Zoning − Improved
Same as the ALTA 3 plus
Covers loss resulting from a court order prohibiting use or forcing removal or alteration of improvements
Title company requires a zoning letter to issue this endorsement

9. CLTA 103.7: Access, Land Abuts Street
Insures that property abuts or has access to a specified physically open street

10. CLTA 116.1: Survey
Guarantees that insured property is exactly same property as described on specified survey
Eliminates risk that survey inadvertently describes wrong property

11. AZ Form 226, 227, 228: Patent
Insures against loss resulting from the exercise of rights under the patent

12. CLTA 103.5: Water
Insures against damage to existing improvements due to the extraction of water through the surface of the land

13. ALTA 5, CLTA 115.2: PUD
Insures lender that mortgage has priority over HOA liens
Covers against loss resulting from violation of CC&R’s and certain encroachments

14. ALTA 6, CLTA 11.5: Variable Rate
Insures lender against the invalidity, unenforceability or loss of priority of the insured mortgage as a result of changes in interest rate
This endorsement may help avoid having to do a modification later

15. ALTA 8.1, CLTA 110.9: Environmental
Insures lender against any loss or damage sustained by reason of loss of priority of the insured mortgage to any environmental protection lien
Recorded at the recorder’s office
Filed in the records for the clerk of the US District Court
Provided for by Arizona statute
Note: ALTA 8.1 (modified) & CLTA (modified) are for non-residential properties

16. AZ Form 211.1, CLTA 110.1: Modified Creditor’s Rights
Removes the creditor’s rights exclusion from the policy