Bulletin: NY000271
Effective February 15, 2006, the Title Insurance Rate Service Association Rate Manual (“Rate Manual”) has been amended to change the criteria for calculation of the premium for reverse mortgages. The definition of the term “Reverse Mortgage” for purposes of the Rate Manual is the same as is found...
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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.
ADDENDUM TO BULLETIN No. NY000271
TIRSA RATE MANUAL EFFECTIVE FEBRUARY 15, 2006
SECTION 6 - MINIMUM INSURANCE: LOAN POLICY
(A) A loan policy shall not be issued for less than the
full unpaid principal amount of the
B) A loan policy insuring Negative Amortization may not be issued in an amount less than the maximum principal amount (including interest which may be added to principal) which may be secured by such mortgage.
SECTION 36 – LOAN POLICY – REVERSE MORTGAGES
(A) A loan policy insuring a Reverse Mortgage (as identified in Section 280 and 280-a of the Real Property Law) may not be issued in an amount less than the “Loan Amount” as shown on the HUD/VA Addendum to Uniform Residential Loan Application or the Direct Endorsement Approval for a HUD/VA- Insured Mortgage. In the event that neither the HUD/VA Addendum to Uniform Residential Loan Application of the Direct Endorsement Approval for a HUD/VA-Insured Mortgage are available, an amount equal to the “Loan Amount” as shown on the final loan application shall be used.
(B) Upon the request of the insured, the policy may be issued in an amount greater than the minimum amount of insurance set forth in (A) above, but: (i) no greater than the Maximum Claim Amount on Home Equity Conversion Mortgages (HECM) insured by HUD, or (ii) in all other types on Reverse Mortgages loans, no greater than the property's appraised value as used by the lender in connection with the making of the loan.