T-33 Guideline - Variable Rate Mortgage

Organizational Guidelines

T-33 Guideline - Variable Rate Mortgage

Guideline Document
V 1


This endorsement insures against invalidity, unenforceability or loss of priority of the lien of the insured mortgage by reason of provisions for changes in the rate of interest. The endorsement does not increase the face amount of the Policy. Each endorsement excludes usury and consumer credit protection.

Endorsement T-33 is issued with a T-2 Loan Policy.  The endorsement does not have to be issued simultaneously with the T-2 Loan policy to which it is attached.  

Please also see P-9b(6) and R-11d as applicable to endorsement T-33.

Underwriting Requirements:

(1)        On residential transactions, the endorsement may be issued endorsing the Loan Policy so long as the mortgage or mortgage rider refers to the variable rate features of the interest rate and, where applicable, to the negative amortization provisions. 

(2)         The interest rate should be determined by an objective formula not within the control of the lender (e.g., its own "prime rate").

(3)        If negative amortization is provided, we generally require that the mortgage state the maximum amount of amortization possible.


For further guidance, refer to the applicable subsections in Section 11.04 of the National Underwriting Manual on Virtual Underwriter http://www.vuwriter.com/vumanuals.jsp?displaykey=UM00000208

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):