March 2010 Vol. 3, No. 2

Underwriters' Bulletin

Claims Corner


Creditors' Rights Coverage Eliminated

ATG has joined Fidelity National Title Group and First American Title Insurance Company in eliminating Creditor Rights Endorsement Coverage from Owner and Mortgagee Policies, effective immediately.

The American Land Title Association (ALTA) has withdrawn the ALTA 21-06 Endorsement form effective March 8, 2010, and the California Land Title Association (CLTA) also has decertified the form as of February 5, 2010.

ATG will no longer delete the creditors' rights exclusion, issue ATG Endorsements 2071, 2071-06, 2072, 2088, 2122-06, the ALTA 21-06 or similar endorsement, or modify in any other way the basic policy form to provide affirmative coverage for creditors' rights issues. This endorsement was very difficult to underwrite because it was based upon information from the purchaser that lenders are in a better position to evaluate with all the credit information the lender has gathered from the purchaser to approve their loan application.

If you have questions or concerns about this change, please contact the ATG Commercial Department at 312.752.1988.

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[Last update: 3-24-10]