Stewart Mortgage Information, Houston, has launched a Stewart Master Residential Junior Loan Policy designed to provide lenders with a lower-cost title insurance product offering limited coverage for junior-lien mortgage loans.The eQuick Policy, which conforms to the American Land Title Association standard form, can be used for primary residences of one to four units and second homes of one unit, but not for commercial or multifamily properties, Stewart said. Other criteria include a maximum loan amount of $500,000, fee-simple property ownership, and a property size of 25 acres or less. "As the refinance market has fallen off, lenders continue to push their home equity and second-lien loan products to generate new business," said Kevin Gugenheim, SMI president and chief operating officer. "Their dilemma has been whether to pay first-lien title coverage rates or go uncovered with traditional uninsured title products. Our new eQuick Policy offers a significantly lower-cost title insurance solution for those junior-lien loans and it is generated electronically to provide more efficient customer service."
