Bulletin: SLS2017005

Date:
December 08, 2017
To:
All Issuing Offices
RE:
UNDERWRITING - HAMP * Loans and Sales by Borrower ( * the Home Affordable Modification Program (HAMP®)

Dear Associates:

          We call your attention to sales of property subject to Home Affordable Modification Program (HAMP) loans and the necessity of careful review of the underlying recorded mortgage modification and its details. The modified loan is subject to a balloon payment at the time of sale of the property.

           HAMP loans were designed to allow financially struggling homeowners to avoid foreclosure by modifying loans to an affordable level. The loan program is now closed but owners who took advantage of it are now selling and it is important to carefully review the modification agreement. These loans were modified by the recording of Loan Modification Agreement and filing of a new second mortgage at the time of modification, which requires a balloon payment upon future sale or refinance of the property. Do not rely on a zero balance statement from a lender.  

If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.

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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.

References

Bulletins Replaced:
None
Related Bulletins:
None
Underwriting Manual:
None
Exceptions Manual:
None
Forms:
None