(logo) Attorneys' Title Guaranty Fund Inc.

NOTES:

Coverage: This endorsement insures against 1) the invalidity, unenforceability, or loss of priority of the insured mortgage as security for advances (as defined in the endorsement); 2) the invalidity or unenforceability of the mortgage because of re-advances and repayments, lack of outstanding debt before an advance, and failure to comply with legal requirements for advances; 3) the invalidity, unenforceability, or loss of priority of the insured mortgage because of adjustment of interest or addition of interest to principal; and 4) the failure of the mortgagors to be at least 62 years of age at the Date of Policy.

The endorsement excludes the following from coverage:

1) Advances made after a bankruptcy has been filed;

2) the loss of priority of the insured mortgage over

a) real estate taxes and assessments;

b) federal tax liens of which the Insured has actual knowledge or that are filed more than 45 days before the Advance;

c) federal or state environmental protection liens; or

d) mechanics' lien claims; and

3) usury, consumer credit protection, or truth-in-lending laws.

Procedure: This endorsement is for Loan Policies only for residential transactions involving property in states other than Illinois or Wisconsin. Because this endorsement is designed to insure the priority of advances regardless of whether the lender knows of any intervening liens and other matters, it may be issued only in those states in which advances will have absolute priority based upon state law.

Examine the mortgage to be sure that it is actually a future advances reverse mortgage and not a revolving credit mortgage, and verify that the mortgage expressly secures future advances and complies with applicable state requirements for disclosure of future advances. Also verify that the mortgage establishes a maximum time for advances and a maximum amount of advances. Secure government issued photo identification for each mortgagor and verify that each mortgagor is at least 62 years of age.

If the reverse mortgage is a HUD HECM (Home Equity Conversion Mortgage), there will be two mortgages: a first lien mortgage to a lender and a second lien mortgage to HUD. Generally, only the mortgage to the lender will be insured, with the HUD mortgage listed as a subordinate matter on Schedule B. At the request of the lender, you may issue one Loan Policy that insures both mortgages on Schedule A and names both the lender and HUD as their interests may appear and issue the Multiple Mortgage Endorsement (ATG Form 2058-06) in addition to this endorsement.

For the property in the state of Indiana, future advances have absolute priority (IC 32-29-1-10), and the endorsement may readily be issued on loan policies insuring future advance mortgages.

For the property in the state of Michigan, future advances have absolute priority (M.C.L.A. 565.902), but if the mortgage is a "residential future advance mortgage" (defined as a mortgage on a one-to-four family residence, condominium or cooperative, or mobile home, or a construction mortgage in which the proceeds will be used to construct such a structure, any of which are located on land of 25 acres or less), then the mortgage must contain the following:

1. The first page of the mortgage must contain, in a conspicuous manner (such as larger font size than the remainder of the document, or all in upper case), the statement "This is a future advance mortgage;"

2. The mortgage must contain a statement of the maximum principal amount that may be secured by the mortgage.

M.C.L.A. 565.903a.

Any mortgage will have priority over construction liens if the mortgage is recorded prior to the first actual physical improvement to the property is made. Any future advances made subsequent to the first actual physical improvement shall have priority over a construction lien if, for that advance, the mortgagee has received a contractor's sworn statement, has made disbursements pursuant to the contractor's sworn statement, and has received waivers of lien from the contractor and all subcontractors, laborers, and suppliers who have provided notices of furnishing and any other contractors who have supplied notices of furnishing or have recorded a claim for lien. M.C.L.A. 570.1119.