A mortgagee clause is a provision in a homeowners insurance policy that names your mortgage lender as a party with a secured interest in the home. It protects the lender's stake if a covered loss damages or destroys the property.
The lender's name is usually followed by ISAOA/ATIMA. ISAOA means “its successors and/or assigns,” and ATIMA means “as their interests may appear.” The clause doesn't make the lender the owner of your home.
Mortgagee Clause Basics
| Term |
What It Means |
| Mortgagee |
The mortgage lender or holder of a security interest |
| Mortgagee Clause |
Insurance policy language recognizing and protecting the mortgagee's interest |
| ISAOA |
Its successors and/or assigns |
| ATIMA |
As their interests may appear |
| Where It Appears |
Homeowners insurance declarations, binder or other proof of insurance |
| Why It Matters |
Helps preserve coverage for the mortgage holder's insurable interest, subject to policy terms |
| Mortgagee Address |
Mailing address specified by the mortgage holder for insurance notices |
What Is a Mortgagee Clause?
When you buy with a mortgage, you own the home and the lender holds a security interest in it. If the house is badly damaged before the loan is repaid, that collateral loses value. A mortgagee clause protects the lender against that risk.
The exact protection depends on the policy wording. Listing a lender's name doesn't guarantee every loss is covered.
Who Is the Mortgagee on Homeowners Insurance?
The mortgagee is the lender or the entity holding the loan's security interest. You are the named insured, or policyholder.
Your mortgage servicer, the company that collects your payments, may not own the loan. It often supplies the name and address that go in the clause anyway.
What Does Mortgagor Mean?
The mortgagor is the borrower who grants the mortgage lien, and the mortgagee is the party that receives it. Our guide to mortgagee vs. mortgagor roles covers the distinction.
What Does ISAOA ATIMA Mean?
Insurance documents often show the lender's name followed by “ISAOA/ATIMA.” The two abbreviations define who holds the insured interest and how far it extends.
ISAOA: Its Successors and/or Assigns
ISAOA stands for “its successors and/or assigns.” It extends the mortgagee's protection to any company that later buys or takes over the loan. Mortgages are often sold after closing, so the loan holder can change while your policy stays put.
Fannie Mae's Selling Guide mortgagee clause rules require this wording on the loans it buys. The clause must show the lender's or servicer's name, then “its successors and/or assigns,” then a mailing address.
ATIMA: As Their Interests May Appear
ATIMA stands for “as their interests may appear.” It ties the mortgagee's rights to the financial interest it actually holds. A lender owed a large balance has a bigger interest than one whose loan is paid off.
ATIMA doesn't mean every insurance payment must equal the loan balance.
What Does ISAOA ATIMA Look Like on a Policy?
A mortgagee entry shows the lender's official name, the ISAOA/ATIMA notation and its insurance mailing address.
| Sample Field |
Illustration |
| Mortgagee |
Example Mortgage Company, ISAOA/ATIMA |
| Mailing Address |
The insurance address supplied by the lender |
| Loan Reference |
The reference number requested by the lender |
| Insured Property |
The home's correct street address |
Your insurer should use the exact name and address provided for your loan, not a sample.
Why Do Mortgage Lenders Require a Mortgagee Clause?
Lenders require hazard insurance because the home secures the loan. If a fire or storm damages it, the house has to be repaired. The clause puts the lender on claim checks so it can make sure the money goes to repairs.
If your premium is paid from an escrow account managed by your servicer, insurance is part of your monthly PITI mortgage payment.
What Is a Standard Mortgage Clause?
A standard mortgage clause, also called a union clause, protects the lender even if the homeowner's own acts or neglect void the homeowner's coverage. In return, the lender must meet conditions such as notice requirements.
Fannie Mae requires a standard or union clause on one- to four-unit homes. It does not accept a loss payable clause instead.
Who Gets the Insurance Money After a Claim?
For a large covered loss, the check usually names both you and the lender. The mortgage holder then releases funds in stages as repairs are completed. Smaller claims follow a simpler process. Either way, the clause doesn't entitle the lender to keep all the proceeds.
Where Can You Find Your Mortgagee Clause?
Look on your homeowners insurance declarations page, insurance binder, evidence of insurance or a policy endorsement. The declarations page also lists the insurer, policy number, coverages and interested parties.
Before closing, your lender will ask for an insurance binder showing the correct mortgagee. Wrong details can delay your clear to close.
How Do You Get the Correct Mortgagee Clause?
Use the exact instructions from your lender or servicer: legal name, ISAOA/ATIMA wording, mailing address and loan number. Give them to your insurer or agent, then check the declarations page or binder.
Never guess the insurance address from the lender's headquarters or branch address.
Is the Mortgagee Clause the Same as a Mailing Address?
No. The clause is contract language recognizing the lender's interest. The address is just where the insurer sends notices.
What Is the Difference Between a Mortgagee Clause and a Loss Payee?
A mortgagee holds a security interest in the property. A loss payee is simply named to receive insurance proceeds up to its interest.
A loss-payable clause gives fewer independent protections than a standard mortgage clause. That matters if the policyholder's conduct voids coverage, so don't assume a loss-payee listing satisfies your mortgage.
What Happens When Your Mortgage Is Sold or Transferred?
If a new loan holder or servicer sends different instructions, update the mortgagee on your policy so notices and claim mail reach the right place. ISAOA covers successors, but it doesn't replace accurate records.
Confirm changes against an official transfer notice before you request an endorsement.
What Happens After You Pay Off the Mortgage?
Once the lien is released, send the insurer proof of payoff and ask it to remove the former lender. Paying off your mortgage doesn't cancel your homeowners insurance, so keep your coverage.
What If You Refinance?
A refinance replaces your old loan with a new one. Your policy must list the new mortgagee before closing, with no gap in coverage.
Can You Remove a Mortgagee Clause?
Not while you owe on the mortgage, because the loan requires it. After payoff, the insurer removes the listing based on your release documents. A second mortgage lender may still need to be listed.
What Happens if the Mortgagee Clause Is Wrong?
A lender will reject proof of insurance with the wrong mortgagee name or an outdated address. That delays closing and claims.
Ask your insurer or agent for an amended binder, declarations page or endorsement. If a claim is open, you'll need to coordinate the fix with the insurer and your mortgage servicer.
Mortgagee Clause vs. Deed of Trust vs. Promissory Note
These documents serve different functions in a financed home purchase.
| Document or Term |
Purpose |
| Mortgagee Clause |
Recognizes the lender's insured interest in the property |
| Promissory Note |
Establishes the borrower's obligation to repay the loan |
| Mortgage or Deed of Trust |
Creates the security interest supporting the debt |
| Property Deed |
Transfers an ownership interest in real estate |
You hold title through the deed, as explained in our deed vs. title guide.
The Bottom Line
A mortgagee clause puts your lender's interest on your homeowners insurance policy. ISAOA means “its successors and/or assigns,” and ATIMA means “as their interests may appear.” Use the exact mortgagee details your servicer supplies, and recheck them after a refinance or servicing transfer.
Frequently Asked Questions
What Is a Mortgagee Clause?
It's homeowners insurance policy language that protects your mortgage lender's interest in the home.
What Does ISAOA Mean?
ISAOA stands for “its successors and/or assigns.” It covers any company that buys or takes over the loan.
What Does ATIMA Mean?
ATIMA stands for “as their interests may appear.” It limits the mortgagee's protection to its actual interest.
What Does ISAOA ATIMA Mean on Homeowners Insurance?
The notation follows the mortgagee's name. It covers the lender's successors and assigns, each to the extent of its interest.
Where Do I Find the Mortgagee Clause?
Check your declarations page, insurance binder, evidence of insurance or a policy endorsement.
Is the Mortgagee the Lender or Borrower?
The lender is the mortgagee, and the borrower is the mortgagor.
Does the Mortgagee Clause Make the Lender a Homeowner?
No, it recognizes the lender's security interest but doesn't transfer ownership.
Can I Change the Mortgagee Clause Address?
Yes, but use only verified instructions from your servicer.
What Happens if the Mortgagee Name Is Wrong?
It can delay closing or a claim, so ask your insurer for a correction.
Does ISAOA Automatically Update My Insurance Policy After a Loan Transfer?
No. Update the mortgagee name and address when your servicer tells you to.
Is a Mortgagee Clause the Same as a Loss Payee?
No. A standard mortgagee clause gives the lender stronger protection than a loss-payable provision.
Does a Mortgagee Clause Cover Flood Insurance?
Standard homeowners policies exclude flood. A separate flood policy carries its own mortgagee clause, and Fannie Mae requires one on flood policies too.
Can I Remove the Mortgagee Clause After Paying Off My Home?
Yes, once the lien is released, but keep your property insurance in place.
Will an Insurance Claim Check Include My Lender?
Often, especially for larger losses. Your policy and mortgage documents set the process.
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