NY TIRSA Reverse Mortgage Endorsement Guideline 1995
Explanation:Purpose Of Endorsement:
This endorsement provides specific coverage with respect to reverse mortgages. The provisions are similar to parts of the residential revolving credit endorsement and the market value rider. Because reverse mortgages by their nature generally have a significant amount of negative amortization built in, policy coverage is based on the lender’s actual loss, subject to caps based on the fair market value of the insured premises at the time of loss and the face amount of the policy.
Underwriting Requirements:Requirements For Issuance:
(a) The mortgage to be insured must qualify as a Reverse Mortgage under §280 or §280-a of the Real Property Law and the regulations issued by the banking department. The statute specifically includes the federal Home Equity Conversion Mortgage (HECM) program, even though the requirements for a HECM vary from the state statute and regulations. One of the requirements is that the reverse mortgage can be made by persons 60 years of age or older (70 or older for a §280-a loan);
(b) Lender’s forms of loan documentation must be reviewed for compliance with statutory and regulatory requirements;
(c) Premises must be residential only.
Issued With The Following Policies:
Mortgage policies only.
The premium for this endorsement is $25.00, but the policy must be issued based on the greater of the present market value of the property or the face amount of the mortgage.
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