T-39 Guideline - TX Balloon Mortgage Endorsement

Explanation:

Texas Procedural Rule P-9b10 provides the regulatory basis for the issuance of this form.

Please also see R-11h for more information on this endorsement. 

A balloon rider is attached to a residential loan that provides for a conditional right to refinance the loan and for changes in the rate of interest.  

Underwriting Requirements:

1.    The original deed of trust that created the lien insured must have attached to it a balloon rider.

2.    The balloon rider must contain a conditional right to refinance

For further guidance, refer to the applicable subsections in Section 11.04 of the National Underwriting Manual on Virtual Underwriter http://www.vuwriter.com/vumanuals.jsp?displaykey=UM00000208

The underwriting guidelines contained herein have been provided for general reference. The facts, circumstances, and location of the subject property should be considered when determining the issuance of the requested form or endorsement. Please note that all of the forms and endorsements included in this system may not be available in all states. Accordingly, please contact the appropriate Stewart Title Guaranty Company underwriting personnel in order to determine availability.

Compliance with the underwriting guidelines contained herein in no way obligates Stewart Title Guaranty Company to issue any form or endorsement.

This guideline applies to the following form(s):

T-39 TX Balloon Mortgage Endorsement