Title: ENDORSEMENT
Author: Roger Therien

State: California

Endorsement No.215	Date: November 1, 1998
Foreign Currency

Subject:

This Endorsement provides a lender which is making a loan in foreign currency, e.g., Japanese yen, which is secured by an insured mortgage on United States real property with coverage against loss or damage sustained by reason of the invalidity or unenforceability of the insured mortgage resulting from the provisions therein for revaluation of the indebtedness, and loss of priority of the insured mortgage lien caused by changes in the conversion rate. Unlike variable interest rate mortgages, this type of mortgage provides for variations in the amount of principal secured based on changes in the conversion rate between the U.S. dollar and the stated foreign currency. It is intended to be issued with an ALTA Loan Policy.

Requirements for Issuance:

1.	The mortgage or deed of trust must clearly disclose:
a.	the index to be used in establishing the conversion rate, and
b.	the amount of foreign currency secured at the effective date.

This will provide holders of intervening liens and encumbrances record notice of the possibility of increases in the principal indebtedness secured by the insured mortgage as a result of changes in the conversion rate.

2.	The policy must be issued in U.S. dollars at least equal to the number of dollars that the foreign currency converts to at the Date of Policy.

3.	Approval of Regional Underwriting personnel is required for issuance of this Endorsement.