STG GOLD Comprehensive Protection Loan Policy (East Coast) Guideline 1997
Explanation:The Stewart Title Guaranty Company GOLD Loan Policy provides substantially more coverage to lenders on 1-4 family residential and condominium properties than has ever been offered before. Endorsement coverages that are incorporated in the GOLD policy provisions are the ALTA Form 9 (Restrictions, Encroachments, and Minerals), ALTA form 6 (Variable Interest Rate), and ALTA Form 6.2 (Variable Rate, Negative Amortization). Since the coverage are extensive, they require additional underwriting guidelines as set forth below. Additionally, an affidavit executed by the seller/borrower must be executed at closing.
Underwriting Requirements:(1) Issue only on one-to-four family residence or residential condominium.
(2) Issue only if improved. Verify by review of tax/assessment search. If search does not reflect improvements, do inspection.
(3) Issue on first liens only.
(4) Issue only if lender is institutional lender commonly making residential loans. Do not issue if lender is individual.
(5) Do not issue if loan for construction or repair of improvements.
(6) Issue only on (1) platted lot within a city or not exceeding one acre, or (2) condominium unit. Do not issue on metes and bounds or other property without underwriter approval.
(7) Verify by tax/assessment search that separately assessed.
(8) Verify with homeowner's association that assessments paid current and that any right of first refusal will not be exercised in current transaction (if there is a right of first refusal).
(9) Verify no pending or current construction ongoing.
(10) If builder sale, verify that certificate of occupancy or local equivalent issued, so that house can be occupied.
(11) Verify that all bills paid on any prior construction within lien period.
(12) If sale, require sellers to execute affidavit and your customary affidavit of debts and liens. If no sale, require borrowers to execute affidavit and your customary affidavit of debts and liens.
(13) Verify by review of restrictions/convenants that the land may be used as a residence.
(14) Except as provided above, no inspection or survey required.
(15) Verify homeowners assessment liens subordinated to insured mortgage (e.g. as purchase money or first lien). If condominium or uniform act subordinates lien to some assessments, specific exception in Schedule B must be required. If the assessment lien of a covenant is not subordinate, specifically state in Schedule B.
(16) Separately and specifically except to easements, assessment liens, and options or first refusals set forth in covenants.
(17) Do not issue this loan policy if examination reflects unusual exceptions such as notices of violations of law or restrictions, lis pendens, adverse ownership.
(18) Policy may be dated and issued on date of settlement/closing if your requirements have been met, funds disbursed, and you are in a position to promptly record, absent lender instructions otherwise, you may show that date as date of policy and you do not need to show recording information in Schedule A.
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):