§14.25 - ALTA Short Form Policies

• Jurisdiction: Washington

§14.25 ALTA SHORT FORM POLICIES

The ALTA has adopted "short form" loan policies designed for the residential loan market. One form is shown in Form 14-11 on the CD accompanying this deskbook. Some are designed for first lien loans and some for second lien mortgages made for home equity loans.

A short form policy incorporates by reference all of the provisions of a full ALTA loan policy. It is designed to reduce the amount of paper included in loan packages sent to the secondary market and reflects the amount of insurance, the borrower's name, the property address, and the lender's loan document. There is no specific recital of the recording information for the mortgage, although in practice many insurers will include it. The form requires the insurer to provide a complete policy to be issued if later...