NM Truth In Lending Endorsement Guideline 48

Explanation:

This endorsement may be issued with a Loan Policy, a Construction Loan Policy, or a Leasehold Loan Policy. It insures a Lender against loss resulting from a determination either (1) that the lien of the mortgage has been terminated or (2) that the title acquired by the lender through foreclosure has been defeated by a valid exercise of the right of recission pursuant to the Federal Truth-in-Lending Act. It further insures against loss if the right of recission existed because neither the credit transaction nor the right of recission was exempted or excepted by Regulation X. The right of recission exists if (1) the mortgage is a security interest in the borrower's principal dwelling, (2) the loan is not a purchase money mortgage, and (3) the borrower is a natural person.

Rate: 9 percent of the full basic (original owner's) premium rate (13 NMAC 14.10.31).

Underwriting Requirements:

Determine that the borrower is not an individual (natural person) or trust mortgaging the principal residence (one-to-four family improved) of the borrower or unimproved property. (The borrower may be a corporation, limited liability company, or partnership.)