STG Balloon Mortgage Endorsement Guideline 2
Explanation:There are two Balloon Mortgage Endorsements:
(1) The endorsement issued at the time the balloon mortgage is created. The mortgage provides for a balloon payment and modification of the interest rate and financing in accordance with the FNMA Rider;
(2) The endorsement issued at the time of recordation of the subsequent modification agreement.
Underwriting Requirements:(1) The Balloon Mortgage Endorsement may be issued at the time of the Loan Policy if the mortgage on one-to-four family property contains a Balloon Mortgage Rider.
(2) The (modification) Balloon Mortgage Endorsement may be issued upon recordation of the modification if the policy is down dated. Verify that the mortgagor remains the owner and is not subject to a bankruptcy.
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):