FL Balloon Mortgage Endorsement Guideline 1
Explanation:This endorsement insures against loss due to the insured mortgage being deemed invalid because it contains a conditional right to refinance or the insured mortgage losing its priority due to the mortgagor exercising such right. The conditional right to refinance would involve an extension of the loan term and changes in the rate of interest.
Underwriting Requirements:The terms of the conditional right to refinance must be set forth in the balloon mortgage rider and all conditions must be met prior to its exercise.
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):