Bulletin: MU000002

Date:
August 14, 1990
To:
All Issuing Offices in Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Georgia, Hawaii, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming
RE:
Balloon Mortgage Rider
Dear Associates:

Fannie Mae has developed a Balloon Mortgage Program which provides that the borrower may exercise an option of (1) a new note and a new mortgage at a fixed rate of interest or (2) a new note and modification of the existing mortgage at a fixed rate of interest. Fannie Mae has agreed with the ALTA Forms Committee that the Balloon Mortgage Endorsement (available through the forms reference at the end of this bulletin) is an acceptable endorsement. Fannie Mae states, "We do not require the use of these endorsements, but we recommend that lenders consider using them."

At the time of the modification of the mortgage, Fannie Mae guidelines specified that the policy should be modified by that Modification Title Endorsement. (See forms reference at the of bulletin)

Stewart is agreeable to issuance of the Balloon Mortgage Endorsement (referenced at the end of this bulletin) under the following conditions:

· The mortgage contains a Fannie Mae Balloon Rider (See forms reference at end of bulletin);

· The property is one-to-four family residential property;

· You should where possible and where allowed by state law charge the greater of $25 or the rate for the ALTA series 6 endorsements for this endorsement;

· If a rate or form filing is required by your state for use of forms and you are requested to issue this endorsement, please contact our district manager or national legal department to verify that a filing has been made.

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:
11.28 Loan Policies
Exceptions Manual:
None
Forms:
ALTA Loan Policy 1992
 
CLTA Variable Rate, FNMA 7 Year Balloon (06-03-05) 111.9
 
STG FNMA Balloon Mortgage Rider 1990
 
STG Modification Endorsement 1