Bulletin: MD2008006

Date:
December 02, 2008
To:
All Maryland Issuing Offices
RE:
Owners Title Insurance Policy Exceptions

Dear Associates:

Many Stewart Title Guaranty Company (STGC) policy issuing agents have relied on "Starter" policies to perform abbreviated title searches in Maryland. All such searches must conform to the bulletins listed at the bottom of this bulletin and any related subsequent requirements. It appears that some Starter policies fail to contain reference to the purchase money mortgages/deeds of trust associated with the purchase transaction. As such, STGC is now requiring that all STGC Owners and Homeowners policies contain a specific exception in Schedule B for any purchase money mortgage(s)/deed(s) of trust and contemporaneously executed subordinate mortgage(s)/deed(s) of trust associated with the transaction for which the policies are being issued.

If you have any questions, please contact the below Stewart Underwriting Personnel.

Shawn A. Goldfaden
Maryland State Counsel
Stewart Title Guaranty Company
609 Global Way, Suite 122
Linthicum Heights, Maryland 21090
(410) 789-8400
(800) 827-9108
Fax: (410) 789-8407
sgoldfad@stewart.com

For on-line viewing of this and other bulletins, please log onto www.vuwriter.com.

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:
MD000010 Limited Searches; Insured Closing Protection Letter
 
MD000022 Guidelines for Residential Refinance and Second Mortgage Title Searches
Underwriting Manual:
None
Exceptions Manual:
None
Forms:
None