Mortgagee Clause and ISAOA/ATIMA Explained

The mortgagee clause is the line on a policy that names the lender. It is the most common reason a lender sends an evidence of insurance back before closing - usually for a missing word.

What it does

Naming the lender as mortgagee protects the lender's interest in the property. A claim check for the building is made out to the lender as well as the owner, and the lender is notified if the policy is cancelled.

What ISAOA/ATIMA means

ISAOA stands for "its successors and/or assigns"; ATIMA for "as their interests may appear". Together they keep the protection in place when the loan is sold or its servicing moves, which happens often with private and DSCR loans. Lenders treat the abbreviation as part of their legal name, so it must appear exactly as they wrote it.

What a full clause looks like

Lender name, ISAOA/ATIMA, then the mailing address for insurance notices - often a different address from the lender's office, and sometimes a servicer's. The loan number goes in its own field.

Mortgagee, loss payee, additional insured

Mortgagee is the lender on a building. Loss payee is used for a lender's interest in personal property or equipment. Additional insured belongs on a liability policy. Lenders occasionally ask for more than one - the requirements sheet says which.

When the loan is sold

The new owner or servicer sends its own clause. The policy is endorsed to show it and a new evidence of insurance goes to them; the old clause should not simply be left on.

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