STG Convertible Variable Mortgage Endorsement Guideline 1
Explanation:This endorsement is similar to the ALTA Form 6 series. It insures against invalidity, unenforceability, or loss of priority of the mortgage because of an option to convert the loan to a fixed rate mortgage.
Underwriting Requirements:(1) The mortgage must refer to the right to convert the loan to a fixed rate.
(2) The fixed rate must be determined by a formula beyond the subjective control of the lender.
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):