There are many different types of endorsements that can be used when underwriting title insurance. In this article, we are going to talk about a few things to know about SWAP endorsements in the realm of title insurance.
What is a SWAP Endorsement?
First, thing’s first – what exactly is a SWAP Endorsement? In the realm of title insurance, a SWAP endorsement is a way to insure the priority of a mortgage in the event that a swap occurs. Now, what exactly does a “swap” mean in this instance? A swap arises when a borrower takes out a mortgage at either a fixed or adjustable interest rate and enters into a swap agreement with another party to protect themselves against potential interest rate fluctuations in the future.
The SWAP endorsement makes sure that the mortgage priority doesn’t change if and when the interest rate swap occurs.
In order to provide a SWAP endorsement, your title company will need to review a range of documents related to the mortgage and the swap agreement itself. It can be a lengthy process so it’s a good idea to start things early by contacting a title insurance company well in advance of the closing date.
Commercial Partners Title Company – Minneapolis, MN
Come to Commercial Partners Title Company for top tier commercial title services. Our team has over two hundred years of collective experience working with people and organizations of all sizes. No project is too big or small for our team of experts. We can guide you through the commercial title insurance process and answer the many questions that crop up along the way. Reach out to our commercial title specialists today to learn more about the title services we provide. You can find us at our offices located in the heart of downtown Minneapolis.