§14.24 - Equity Loans

• Jurisdiction: Washington

§14.24 EQUITY LOANS

Some lenders making so-called home equity loans, such as a line of credit loan secured by a second mortgage lien on the borrower's residence, may not require extended coverage. These lenders assume that most issues addressed by an extended coverage policy have been dealt with by the lender holding the first mortgage lien.

These loans can be insured with an ALTA "short form" policy (see §14.25). Some title companies offer a standard coverage ALTA Loan Policy but with additional...