CLTA Variable Rate Mortgage Endorsement Guideline 111.7
Explanation:This endorsement provides an insured lender, at the time of policy issuance, with insurance as to the validity, enforceability, and priority of a deed of trust which provides for a renegotiated interest rate.
Underwriting Requirements:(1) In order to issue this endorsement, the loan documents must be reviewed in order to insure:
(a) that the deed of trust clearly indicates that the interest rate may vary;
(b) that there is a maximum interest rate established; and
(c) that there is an established "external index" which will control the movement of the interest rate.
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