STG Secondary Market Endorsement Guideline 1
Explanation:This endorsement is issued only on:
This endorsement is not issued on subordinate mortgages, master loan policies, or short-form loan policies.
Underwriting Requirements:The endorsement insures against defects, liens, and encumbrances in Schedule B of the Policy that may violate the named insured lender's guidelines, the Federal Home Loan Mortgage Corporation Sellers' and Servicers' Guide, or the Federal National Mortgage Association Selling Guide in effect at Date of Policy.
FNMA reviewed this endorsement and, in its response, stated "We have reviewed the proposed Secondary Market Endorsement submitted to us by Stewart Title and find it to be acceptable. We agree there may be circumstances under which mortgage lending institutions would benefit from having this additional insurance protection on mortgage loans delivered to Fannie Mae. As we discussed, we do not view the availability of title insurance as an acceptable reason to deliver mortgages to us that are ineligible due to the title defects listed in our Selling Guide."
We have printed two forms of this endorsement: (1) an endorsement that refers to the FHLMC Sellers' and Servicers' Guide and the FNMA Selling Guide and (2) an endorsement that leaves blank space for reference to a particular lender's or investor's guidelines.
FNMA and FHLMC
In order to issue this endorsement which refers to "the Federal Home Loan Mortgage Corporation Sellers' and Servicers' Guide or the Federal National Mortgage Association Selling Guide", you must determine that the only Schedule B exceptions are:
covenants, conditions, and restrictions applicable to a residential subdivision which do not contain reverter or forfeiture provisions and which do not create an assessment lien superior to the insured mortgage;
utility easements and other servitudes along the boundaries of the land or servicing the home; and
mineral leases, reservations, and royalties.
In order to issue this endorsement which allows you to refer to another lender's instructions, you must (1) comply with the other requirements (relating to compliance with the FNMA and FHLMC Guides) for issuance of this endorsement, (2) review the lender's instructions, (3) verify that the Schedule B exceptions do not violate the instructions, and (4) add the name of the particular lender and refer to the lender's particular instructions (by date and name) in the endorsement.
Do not issue this endorsement if Schedule B excepts to other mortgages, judgment liens, tax liens, other liens, rights of owners of an interest in the fee, lis pendens, environmental notices, pipelines easements, contracts for deed, options to purchase the land, boundary conflicts or encroachments.
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):