Guideline: NM 60 - Loan Policy Aggregation Endorsement

Explanation:

The Loan Policy Aggregation Endorsement (NM 60, ALTA 12) also is called the Tie-In, Cluster or Spreader Endorsement. The endorsement is designed to aggregate the liability of multiple Loan Policies (whether issued in New Mexico or elsewhere) covering multiple tracts.  This endorsement may be attached to a Loan Policy if (1) multiple policies are simultaneously covering separate mortgages (in New Mexico or other states) to secure the mortgage debt, and (2) the land is not residential property containing four or fewer dwelling units.

Please contact a Stewart Title Guaranty Company underwriter if you are asked to issue the NM 60.1.  

Underwriting Requirements:

We require the following:

1. Do not issue on one to four family residential property.

2. The percentage in the endorsement should be at least 10% of the policy.

3. Issuance of the endorsement will only be authorized if there is a reasonable explanation for issuance of the Policy for an amount less than the amount of the debt (such as where the value of the land is equal to the amount of insurance and these is other collateral).  In the alternative, consideration could be given to a provision for pro rata liability equal to the ratio of the value of the land to the total collateral.

4.  If the aggregate limit of liability exceeds the Company’s self-imposed or statutory limits for single risks in New Mexico, you must contact the Reinsurance Department of the Company.

5.  We prefer to show allocated amounts for the “Amount” of each policy, rather than the aggregate (generally the loan amount) liability for the separate Amount of Insurance for each Policy.

6.  Underwriter must approve issuance of the endorsement.