Title Insurance for Mortgage Lenders: Zoning, Usury, Easement, Future Advances, Comprehensive, Other Endorsements

Assessing Risks and When to Require Certain Coverages: Title Updates and Modifications

A live 90-minute premium CLE video webinar with interactive Q&A

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Tuesday, March 7, 2023

1:00pm-2:30pm EST, 10:00am-11:30am PST

Early Registration Discount Deadline, Friday, February 10, 2023

or call 1-800-926-7926

This CLE webinar will analyze various title issues of particular concern to lenders, and the title endorsements which can be obtained to address various risks and contingencies. The panel will also discuss the types of loan modifications that require endorsement to an existing loan policy.

Description

Title insurance can figure heavily in the closing of a commercial mortgage loan. Lender's counsel must have a thorough understanding of the endorsements that are available to cover various title issues at the property level. Certain features or modifications of a loan can also affect title insurance coverage, so counsel must ensure that appropriate endorsements or title policy modifications are obtained to address those contingencies.

The ALTA 9 or "Comprehensive" endorsement insures against loss or damage resulting from violations of the deed restrictions, encroachments, and set back lines. Certain endorsements address other property-specific title issues, such as the ALTA 3.3 endorsement for improved property where there is known nonconforming use, the ALTA 8.1-06 endorsement relating to environmental protection liens, and the ALTA 28 endorsement which provides coverage against forced removal or alteration of improvements under existing easements.

Endorsements relating to the financing structure must also be considered. There are future advances endorsements for credit line loans and for obligatory and nonobligatory advances. Construction loan endorsements are available in most states, but title updates may be necessary prior to each disbursement. A balloon mortgage endorsement protects the lender against the unenforceability of the lien due to the exercise of a conditional right to refinance, an extension of the loan term, or a change in the rate of interest.

Listen as our authoritative panel discusses the foregoing title endorsements and the legal due diligence which must be conducted to determine the need for each. The panel will also discuss when title endorsements are needed in connection with assignment or amendment of an existing loan.

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Outline

  1. How loan title policies differ from owners policies
  2. ALTA 9 comprehensive endorsement: conditions for issuance
  3. Property-specific endorsements
    1. ALTA 3.3 -- zoning; nonconforming use
    2. ALTA 8.1-06 -- environmental protection liens
    3. ALTA 28 -- forced removal or alteration of improvements under existing easements
    4. ALTA 7 -- manufactured housing
    5. ALTA 5 -- planned unit development
  4. Endorsements relating to financing terms
    1. Usury endorsement
    2. ALTA 32 and 33 -- construction advances
    3. Future advances endorsements
    4. Baloon mortgage endorsement
  5. Title updates and endorsements in connection with loan assignments and modifications

Benefits

The panel will review these and other important issues:

  • What does the ALTA 9 comprehensive endorsement cover, and what other types of endorsements should be part of every loan policy?
  • What are the prerequisites for a zoning endorsement, and how should nonconforming uses be addressed?
  • When should an ALTA 28 endorsement be required?
  • What kinds of loan amendments might require an endorsement or update to a loan policy?

Faculty

Escobar, Jeffrey
Jeffrey R. Escobar

Partner
Locke Lord

Mr. Escobar focuses his practice on advising lenders, sponsors, investors, project companies, public and private...  |  Read More

Glosser, Lawrence
Lawrence S. (Larry) Glosser

Attorney
Ahlers Cressman & Sleight

Mr. Glosser’s primary focus is real estate, business, and corporate law.  His practice combines transaction...  |  Read More

Halverson, Micah
Micah J. Halverson

Partner
Kutak Rock

Mr. Halverson represents commercial lenders and developers in a variety of financial transactions and developments. He...  |  Read More

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Early Discount (through 02/10/23)

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Early Discount (through 02/10/23)

You may pre-order a recording to listen at your convenience. Recordings are available 48 hours after the webinar. Strafford will process CLE credit for one person on each recording. All formats include course handouts.

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