Bulletin: IN000021

Date:
June 22, 2006
To:
All Issuing Offices in Indiana
RE:
New Recording Requirements and Title Insurance Enforcement Fund
Dear Associates:

New Indiana legislation (House Enrolled Act 1114) was signed by the Governor on March 24, 2006.  The new law provides that, upon passage, the State Board of Accounts, County Form 170, is no longer required to be attached to a document submitted for recording.  Also, effective immediately, the county recorder will charge a two dollar ($2.00) county identification security protection fee for each document submitted for recording or filing. This fee is in addition to the customary recording fees.  Effective July 1, 2006, the following affirmation must be contained in each document submitted for recording and filing:

"I affirm, under the penalties of perjury, that I have taken reasonable care to redact each Social Security number in this document, unless required by law (name)."

The affirmation requirement does not apply to a: 1) judgment, order or writ of court; 2) will or death certificate; 3) an instrument executed or acknowledged outside Indiana; or 4) federal lien on real or personal property.[1]  Additionally, a federal lien on real or personal property is not subject to the redaction of social security number requirement. We have been informed that the county recorders will accept the affirmation language in the body of the document in the same place as the required "Prepared By" statement and that a separate form can be attached with the affirmation.  There will be an additional charge of $2.00 for the separate form in addition to the $2.00 county identification security protection fee.  We have also been informed that an actual signature is not required.  A typed name of an individual, not an entity, will be acceptable.  It is still advisable for each agent to check with the county recorder in the counties they do business in to determine what will be acceptable to satisfy the affirmation requirement. Agents are advised to add the following or a substantially similar requirement to their commitments:

Any documents recorded after June 30, 2006 that are executed and acknowledged in Indiana must contain the following affirmation: "I affirm, under the penalties of perjury, that I have taken reasonable care to redact each Social Security number in this document, unless required by law (name)." The affirmation must be contained within the document or on a separate form attached to the document for recording.

House Enrolled Act also creates the Title Insurance Enforcement Fund to provide supplemental funding for Department of Insurance operations related to title insurance and to pay for the costs of hiring and employing staff in the area of enforcement.  After June 30, 2006, any person that purchases a title insurance policy must pay a fee of five dollars ($5.00) for the title insurance enforcement fund at the time premium is paid for the title insurance policy. Therefore, the $5.00 fee must be charged as a line item on the 1100 series on theHUD for any transaction closing after June 30, 2006. The Title Insurance Enforcement Fund Fee should be reflected on the HUD as the "TIEFF". If your office is not conducting the closing, an additional $5.00 fee must be collected in addition to the premium payable for any policies to be issued.  The fee applies to both commercial and residential title insurance policies. If a loan and owners policy is issued simultaneously, a $5.00 fee must be collected for each policy.  The $5.00 fee is payable to the underwriter upon which the policy is issued and is to be remitted separately from the Policy Premium Check to the underwriter.  The underwriter shall retain two dollars ($2.00) of the fee collected as an administrative fee. The underwriter shall be responsible for remitting the remaining three dollars ($3.00) to the Department of Insurance.  Agents are advised to immediately add the following or a substantially similar requirement to their commitments:

By virtue of I.C. 27-7-3.6, a fee of $5.00 payable to the title insurance underwriter will be collected from the purchaser of the policy for each policy issued in conjunction with a closing occurring on or after July 1, 2006.  The fee should be designated in the 1100 series of the HUD form as a TIEFF (Title Insurance Enforcement Fund Fee) charge.

More specific instructions from our office concerning remittance of the Title Insurance Enforcement Fund fee will be forthcoming.    

For a complete copy of HB1114, go to: http://www.ingov.legislative/bills/2006/HE/HE 1114/.1.html



[1] I.C. 36-2-11-15

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:
IN000016 This Bulletin has been replaced by IN000021.
 
IN000019 This Bulletin has been replaced by IN000021.
Related Bulletins:
None
Underwriting Manual:
None
Exceptions Manual:
None
Forms:
IN Recording Declaration 2005