STG Reconveyance Fee Endorsement Guideline 1
Explanation:Where issuing a Loan Policy, the insurer may be requested to insure the priority and validity of the lien of the insured mortgage to the extent it secures a special fee such as prepayment penalties, reconveyance fees or other similar charges. This will typically be possible provided that the mortgage adequately discloses the fees and provided that no insurance is given as to the enforceability of the fees.
Underwriting Requirements:(1) A Senior Underwriter must approve issuance of the endorsement.
(2) The mortgage must refer to the special fee.
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):