CO Collateral Assignment Endorsement Guideline 104.4

Explanation:

Provides the collateral assignee of a mortgage or deed of trust insured under an ALTA Loan Policy with assurances concerning (a) the validity of the assignment to evidence the transfer of the entire beneficial interest to the named assignee as collateral security; and (b) that no full or partial release or modification or subordination of the insured mortgage or deed of trust appears of record.

Underwriting Requirements:

(1) This endorsement is to be utilized for collateral assignments of the deed of trust or mortgage.
(2) The liability under this endorsement is limited to the obligation amount of the transfer being made or the amount of the obligation being assigned, whichever is the lesser amount.
(3) The following elements are requirements for issuance of this endorsement:
(a) A review of the original note and deed of trust must be made in order to preclude conflicts between the record assignor and true owner of the note.
(b) A search for release, subordination, modifications, etc. of the insured deed of trust or mortgage; and
(c) A general index search of the assignor and all intervening assignors for federal tax liens, bankruptcies, incompetencies, etc..