Security Title Endorsement Guide

ONE TO FOUR FAMILY SHARED APPRECIATION MORTGAGE ENDORSEMENT COMMERCIAL PARTICIPATION INTEREST

ALTA 30-06 (07-26-10) ALTA 30.1-06 (08-01-12)

These endorsements are designed to provide additional coverage to the lender when the loan

documents provide that the lender will participate in the appreciation in value of the property or a

share of the cash flow (as additional interest). The residential version (30-06) was developed for

use with government programs that modified and reduced the outstanding debt of homeowners in

the face of the downturn of the housing market. These programs allow the recapture of

appreciation up to the amount of forgiveness of previously outstanding debt. The commercial

version (30.1-06) is for use only with commercial transactions and includes, in addition to the

increase in the value of the property (appreciation), a share of the cash flow from the property

and any increase in the equity of the borrower in the property. These endorsements provide

coverage in the event of an attack on the validity, priority or enforceability of the Insured Mortgage

based upon the provisions regarding shared appreciation and participation.

NYSE:FNF