Bulletin: NL000025

Date:
April 27, 1993
To:
All Issuing Offices
RE:
ALTA Form 6\HUD Adjustable Mortgage Loans

Dear Associates:

The revised HUD Single-Family Mortgage does not contain an Adjustable Rate Rider.

You may issue the ALTA Form 6 (or similar adjustable loan endorsement such as the Texas Form T-33, where available) on HUD single-family adjustable loan mortgages. You do not need to require an Adjustable Rate Rider.

The mortgage should describe any negative amortization if you issue the ALTA Form 6.2. This form is not available in Texas and some other States. On commercial property, the mortgage should refer to any adjustable rate and negative amortization features.

THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER  AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.

References

Bulletins Replaced:
None
Related Bulletins:
None
Underwriting Manual:
12.28 Mortgages
Exceptions Manual:
Mortgages
Forms:
ALTA Endorsement 6 (Variable Rate Mortgage)
 
ALTA Endorsement 6.1 (Variable Rate Mortgage-Regulations)