NY TIRSA Additional Interest Endorsement Guideline 1995

Organizational Guidelines

NY TIRSA Additional Interest Endorsement Guideline 1995

Guideline Document
V 1


Purpose Of Endorsement:
This endorsement provides assurances to the lender that the provision calling for additional interest is valid, and shares the same priority as the principal of the loan secured by the mortgage. The amount of the additional interest is not insured, although the amount of additional coverage purchased provides a ceiling for what the Company can be held to cover.

Underwriting Requirements:

Requirements For Issuance:
(a) Underwriter approval is required prior to issuance (this is a requirement of the New York State Insurance Department). If a lender is offering a shared appreciation mortgage (SAM) program, a blanket approval can be obtained, provided the loan documentation is on standardized forms which have been reviewed by the Company;
(b) Company Counsel must review the loan documentation since the circumstances which would permit the issuance of this endorsement are diverse, and underwriter approval is required, specific requirements are not set forth;
(c) The loan documentation must provide for additional interest which is not a prepayment penalty, and the transaction is not a reverse mortgage or swap.
Issued With The Following Policies:
Mortgage policies only where a mortgage contains provisions for shared appreciation, a so-called equity kicker, a percentage of receipts, or other type of additional interest, but not including a reverse mortgage or swap, which have special endorsements.
Regular rate per thousand of insurance for coverage over the face amount of the loan.

Any revision to this form requires approval of a Stewart Title Guaranty Company underwriter. 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):
  • None