SECTION 16 - MODIFICATION
OF AN INSURED LOAN
(including Construction Loan Insurance)
-
For endorsements to existing loan policies, or new policies insuring
previously insured mortgages modified or assigned within ten years
from the date of closing, where there has been no change of ownership
of the mortgaged interest and the property is identical and no increase
in the outstanding principal balance, the charge shall be fifty
percent (50%) of the applicable loan rate based on the outstanding
principal balance of the mortgage. The provisions of this sub-section
DO NOT apply to the final conversion of a Construction Loan Mortgage
as outlined in Sections 12 (B), (C) or (D).
-
A 30% of the applicable loan policy rate (or 70% discount) and a
ten year period shall apply to a mortgage modification transaction,
where ALL of the following conditions are met:
- The Borrower
is a Public Benefit Corporation or a Not-For-Profit IRC Section
501(c)(3) Organization;
- The Lender
does not change, is a Public Benefit Corporation, and requires
only assurance that its mortgage priority, validity and enforceability
have not changed because of the modification;
- The mortgage
is neither sold nor packaged but, throughout the life of the
loan, remains in the Lender's portfolio;
- The amount
of the mortgage loan modified exceeds $1 million, measured by
its outstanding principal balance; and
- The only
modification is a change in the mortgage loan interest rate,
and any accompanying changes necessary to reflect that change
in interest rate.
-
An existing loan policy may be endorsed by issuance of the TIRSA
Successor in Ownership of Indebtedness Endorsement (Loan Policy)
(8/15/94) at a charge of $25, upon application of a party representing
that it has succeeded to the ownership of the indebtedness secured
by the insured mortgage. Such endorsement, however, shall not extend
the effective date of the policy nor insure the validity, form,
or sufficiency of the assignment.
|