ALTA 21 Creditors Rights Endorsement: List Grows of Companies NOT Issuing It
As noted in my posting this morning [link], the ALTA Board of Governors voted to withdraw and de-certify the use of the ALT 21endorsement form. It removes creditors rights issues from certain title insurance policies.
So, what is the next step?
The title companies seize the opportunity, and stop issuing it. (You're not surprised.)
Here's the list of title companies (by my count) that have done so since the ALTA announcement:
- Stewart Title
- Chicago Title*
- Fidelity National Title*
- Ticor Title*
- Lawyers Title*
- Commonwealth Land Title*
- Security Union Title*
- Alamo *
*= all part of the Fidelity National Title Group underwriters
More title insurance companies will follow, lenders will accept the change, and this endorsement will be fondly remembered - as a unique attribute of the "old economy."
If you can add to this list, please add it by posting a comment below.
First American stopped issuing them as of Tuesday 2/8/10.I received the following email from a National Account Manager at FATIC on that day: "Effective immediately, First American will no longer provide creditors’ rights coverage. The Company will no longer delete the creditors’ rights exclusion, issue the ALTA 21-06 or similar endorsements, or modify in any other way the basic policy form to provide affirmative coverage for creditors’ rights issues"