Mortgage lenders are now increasing the demand for lenders’ ALTA policies (American Land Title Association) due to a greater potential for the loan amount to be greater than the insured amount. In an effort to secure adequate coverage, attorneys are recommending that Lender’s ALTA be requested from the title insurer in an amount that is 125% of the loan amount. This creates a buffer should an uncovered claim occur which would allow for a greater potential for recovery.

The abbreviations ALTA and Lender’s ALTA stand for American Land Title Association and Lender’s American Land Title Association respectively, and are often used interchangeably in the mortgage industry. ALTA policies are designed to protect the lender, and the lender’s interest in the property, from any title defects via title insurance coverage. This provides security against various potential problems that may arise from a title defect that could prevent the lender from foreclosing on the property.

• Mortgage Lenders: Increasing demand for Lender’s ALTA policies
• Requested in amount that is 125% of loan amount: Creates buffer for uncovered claims
• Abbreviations: ALTA and Lender’s ALTA
• ALTA policies: Protect lender and lender’s interest in property from title defects
• Title Insurance Coverage: Provides security for various potential problems that may arise from title defect

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