- April 13, 1992
- All Region E Advisory Title Officers
- 110.5 Modification
By now, some of you may be aware of requests coming from customers, particularly on commercial transactions, for a modification of the 110.5 endorsement to be issued, insuring the lender's priority where only an extension of the loan is being made and no further modification is being done. Please see form referenced at the end of this bulletin. Apparently, two of our major competitors are issuing such an endorsement based upon the theory that a mere extension would not prejudice the rights of an intervening lienholder.
Although, there was much debate amongst the senior Stewart underwriters about the merits of whether or not an intervening lienholder is or is not prejudiced by the mere extension, nevertheless, it was agreed that Stewart would consider issuing said endorsement as requested strictly under the following guidelines:
- A full review of the loan modification be made by the title officer to satisfy
themselves that the only modification being done to the deed of trust is an
extension of the loan. If there are any other modifications, the modified
110.5 may not be used.
- A full datedown be done.
- If the datedown shows any intervening liens, the endorsement may not be
- Verification from the lender that the loan is not in default.
If you are able to satisfy the requirements of (1) through (4) above, the modified 110.5 endorsement may be issued without further approval from the Underwriting Department. If all the requirements are not met as set forth above, please contact either myself, Tom Thompson or Tim Salisbury for further discussion. A charge of not less than $350 and not more than $750 will be the required premium for the endorsement. The final premium will depend on the fact amount of the deed of trust.
If there are any questions in regard to the guidelines in issuing the modified 110.5 endorsement as attached, please call me as soon as possible.
THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.