- February 16, 1996
- All Issuing Offices in Michigan
- Home Equity Policy
Stewart Title Guaranty is pleased to introduce the Home Equity Policy (H.E.P.) program. This program was developed to provide value-priced title insurance coverage for institutional equity loans and is to be issued only to institutional commercial lenders making equity loans on 1-4 residential dwellings. This produce should prove useful when marketing to lenders who specialize in equity financing.
The policy consists of: (1) a policy jacket; (2) a Schedule "A"; (3) a continuation endorsement; and, (4) a revolving credit/variable rate endorsement. Please see referenced forms at the end of this bulletin.
1. Policy jacket
There are no traditional insuring clauses. The coverage is limited to loss due to any incorrectness of the assurance made in Schedule "A".
2. Schedule "A"
The only items needed are the legal description, property address, tax information, last conveyance, mortgage and lien information. You will need to search for these items. You do not have to search other title matters.
3. Continuation Endorsement
This form can be used either to "down date" title prior to closing and recording of the equity loan documents or, subsequent to the recording of the loan documents to reflect the recording.
4. Revolving Credit/Variable Rate Endorsement
This form can be used when the loan has a revolving credit feature, a variable rate feature, or both.
The filed rate in Michigan is $2.00 per $1000 of liability and includes the continuation endorsement and the revolving credit/variable rate endorsement. The charge does not include search and settlement fees.
Should you have any questions, please contact the Stewart personnel with whom you customarily deal with or any Senior Underwriter in Houston.
Practices for Home Equity Policy
Customer Group. Applications or orders for HEP should only be accepted from institutional commercial equity lenders making consumer loans.
Included in this identified group are banks, savings and loan associations, and credit unions.
Type of Property. The HEP can be used only for 1-4 residential dwellings.
Lending Limitations. Loans in excess of $200,000 must be approved by approved underwriting personnel.
Underwriting and Legal Decisions. Questions relating to underwriting are to be referred to Senior Underwriters in Houston.
Type of Loans. The HEP is available only for secondary financing, not for first mortgages.
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.
- Bulletins Replaced:
- Related Bulletins:
- Underwriting Manual:
- 11.28 Loan Policies
- Exceptions Manual:
- Tax Deed - Administrative (Nonjudicial) Tax Foreclosure or Potential Defect in Judicial Proceeding