Chicago Title Endorsement Handbook - Chicago, IL

Non-ALTA 2006 • 285 CONVERSION ENDORSEMENT Conversion Endorsement is available for loan policies covering residential property. This endorsement insures the lender against loss or damage arising out of the invalidity or unenforceability of the Insured Mortgage. It also insures the Lender against loss of priority of the Insured Mortgage due to the presence of provisions in the Mortgage regarding changes in the rate of interest or the right of the borrower to convert from an adjustable rate loan to a fixed rate loan. Prior to issuance of the endorsement, the Mortgage to be insured must be reviewed to determine whether the provisions regarding the right to convert to a fixed rate loan and the changing of the interest rate are clearly detailed. Conversion Endorsement