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ALTA 11.1

Mortgage Modification with Subordination

The ALTA 11.1 is issued with the standard ALTA Loan Policy in those cases where a mortgage or deed
of trust is modified after its original date by agreement of the parties.

The ALTA 11.1 insures against loss or damage due to invalidity or unenforceability of the mortgage as
a result of the terms of the modification agreement. It also insures that priority of the mortgage, as

modified, continues over any defects, liens, and encumbrances on the title, other than those listed
as exceptions in either the policy or the endorsement. Finally, this endorsement is issued when
an intervening lien appears in the title search and is subordinated by agreement to the insured

mortgage. It includes a paragraph that lists subordinate matters to the insured mortgage or deed of
trust.

The endorsement does not insure against the Modification being set aside as a fraudulent
conveyance, fraudulent transfer, or voidable transfer under the Uniform Voidable Transactions Act.

In addition, it does not insure against a Modification being set aside as a preferential transfer to the
extent the transfer made is not being made for contemporaneous value, and except to the extent that

the preferential transfer results from the failure to timely recorded the instrument of transfer or the
failure of such recording to impart notice to a purchaser for value or to a judgment or lien creditor.

This endorsement is different from a “date-down” endorsement as it does not extend all the
coverages under the policy to the date of recording of the mortgage modification agreement.

However, it is typically issued in conjunction with a date down endorsement bringing forward the
date of policy to the recording date of the modification as permitted by state statute or regulation.

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