Mortgage Clauses
In addition to protecting your property, most property insurance policies include clauses that will also protect your lender. Because your lender has a financial interest in your home until the mortgage is fully paid, they also require compensation for any property insurance policy payouts. In these property insurance clauses, your lender will be referred to as the mortgagee. Wherever you see the term "mortgagor," that means you, the property owner.
What is a Mortgage Clause?
A mortgagee clause is a property insurance provision granting special protection for a mortgagee (e.g., financial institution that has an interest in the property) named in the policy that, in effect, sets up a separate contract between the insurer and the mortgagee.
The clause establishes that loss to mortgaged property is payable to the mortgagee named in the policy and promises advance written notice to the mortgagee of policy cancellation. It also grants continuing coverage for the benefit of the mortgagee in the event that the policy is voided by some act of the insured (e.g., arson). The Mortgagee Clause specifies the obligations of the mortgagor in continuing coverage. The mortgagor would be expected to notify the insurer of any changes in ownership, occupancy, or exposure; pay any due premium; and submit a signed, sworn statement of loss within the appropriate time frame. Without the protection of the mortgagee clause, financial institutions would be unlikely to loan the large amounts of money necessary to purchase homes.
When you obtain your property insurance policy, you must ensure that the mortgagee is named using our legal name of Santander® Bank, N.A. and the appropriate address, listed below.
| Product Type | Required Loss Payee/Mortgagee Clause |
|---|---|
| Conventional | Santander Bank, N.A. ISAOA ATIMA PO Box 200060 Kennesaw, GA 30156-9246 |
| FHA | Santander Bank, N.A. and the secretary of HUD, ISAOA ATIMA PO Box 200060 Kennesaw, GA 30156-9246 |
| CHFA | Connecticut Housing Finance Authority, Santander Bank, N.A. ISAOA ATIMA PO Box 200060 Kennesaw, GA 30156-9246 |
| NH Housing | Santander Bank N.A. and the New Hampshire Housing Finance Authority ISAOA ATIMA PO Box 200060 Kennesaw, GA 30156-9246 |
| MHFA | Massachusetts Housing Finance Agency ISAOA ATIMA 1 Beacon Street Boston, MA 02128 |
| MHP 1st and 2nd mortgagee |
Santander Bank, N.A. ISAOA ATIMA PO Box 200060 Kennesaw, GA 30156-9246 |
| MHP Closing with a subsidy 3rd mortgagee |
MHP Funds Board, ISAOA ATIMA 160 Federal Street 2nd Floor, Boston, MA 02110 |
| PHFA | Pennsylvania Housing Finance Agency, Its Successors and/or Assignees 211 North Front Street PO Box 15057 Harrisburg, PA 17105 - 5057 |
| RI Housing | Rhode Island Housing ISAOA ATIMA 44 Washington Street Providence, RI 02903 |
| SONYMA | State of New York Mortgage Agency, c/o M & T Bank PO Box 5738 Springfield, OH 45501 |
| VA | Santander Bank, N.A. and the Secretary of Veteran Affairs ISAOA ATIMA PO Box 200060 Kennesaw, GA 30156-9246 |
| Home Equity Line of Credit | Santander Bank, N.A. 10-421-CT2 450 Penn Street Reading, PA 19601 |
| MHP Closing with North Suburban Consortium/Malden Redevelopment as 3rd or 4th mortgagee |
Malden Redevelopment Authority, as Representative Member and Agent for the North Suburban Consortium 200 Pleasant Street Malden, MA 02148 |
| NJHMFA | New Jersey Housing and Mortgage Finance Agency 637 South Clinton Avenue P.O. Box 18550 Trenton, NJ 08650 |
| MMP | Santander Bank, and MD CDA and/or their Successors and Assignees CDA/Single Family Housing 100 Community Place 4th Floor, Room 4.300 Crownsville, MD 21032-2023 |
Other Types of Mortgage Clauses
While the term “mortgagee clause” typically refers to the mortgagee clause in your property insurance, there are clauses that are also directly part of your mortgage agreement. A common clause that will likely be included as part of your mortgage is an alienation clause.
Alienation Clause
Also referred to as a due-on-sale clause, an alienation clause requires you to make full payment of your mortgage if you sell or otherwise transfer the property. This prevents a new owner from assuming the mortgage under its current terms without the lender’s knowledge. Many mortgages are not assumable, so read your mortgage carefully and contact your lender if you plan to make any changes in ownership of your property.
Have additional mortgage questions? Check out our Mortgage FAQs, glossary of common mortgage terms, or contact a Mortgage Specialist.
