Mortgage industry experts recommend utilizing certain endorsements on all transactions in order to protect all loan originators and lenders involved. The ALTA 9-06 endorsement is one of the most important, with benefits including:

• Exoneration of all loan originators and lenders from any wrongs done by previous holders of the note
• Assurance that the transaction is not in violation of any recorded document
• Guarantee that the company that insured the loan will not cancel or revoke any part of the terms

Additionally, ALTA 10-06 is an endorsement commonly used to ensure that lender’s interests are adequately protected in the event of a dispute. The ALTA 10-06 Endorsement provides coverage to the lender for losses due to wrongful acts by predecessors in title including fraud and forgeries. Furthermore, it gives the lender the authority to record any applicable documents as part of the title process.

It is important for mortgage industry experts to keep up to date with changing endorsement rules in order to ensure that all parties in a loan transaction are adequately protected and compliant with regulations. Nonetheless, the ALTA 9-06 and 10-06 endorsements are universally recommended for all transactions to guarantee protection from fraudulent acts and to ensure all main terms remain in place.

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