Bulletin: FL000026

Date:
May 10, 1993
To:
All Florida Offices and Agents
RE:
Mortgage Modification Agreements and Substitution Loan Rate

Dear Associates:

There has been considerable confusion over the last several years as to the applicability of the substitution loan rate and mortgage modification agreements.

At a recent meeting of the Florida Title Underwriters Bureau, which was attended by Wally Senter of the Department of Insurance, Mr. Senter announced that the Department would, in fact, enforce the requirement that substitution loan rates be charged on mortgage modifications which did not fall into one of the four categories itemized in the regulation as exceptions.

Subsequent to the meeting, Mr. Senter put out a release.

Accordingly, when a mortgage modification does not fall into one of the four exception categories, a substitution loan rate should be charged.

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.

References

Bulletins Replaced:
None
Related Bulletins:
None
Underwriting Manual:
12.28 Mortgages
Exceptions Manual:
FL Mortgages
Forms:
None