Why are the words “Open-End” on the Connecticut Mortgage?
If you look at Fannie Mae’s security instrument for Connecticut, they use “open-end” in the title (see here). To protect the lien priority of a mortgage intended to secure future advances; Conn. Gen. Stat. ยง 49-2(c) provides an optional statutory safe harbor that may be followed. In other words, if the lender, for some reason, makes advances on behalf of the borrower to protect the property, pay insurance, etc., having “Open-End” in the title of the mortgage deed would secure these advances, thereby allowing the lender to recover these costs.
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