Bulletin: MU2008002

Date:
January 16, 2008
To:
All Issuing Offices except in the states of Florida, New Mexico, New York and Texas.
RE:
New ALTA Forms

Dear Associates:

NEW FORMS

The American Land Title Association (ALTA) has recently adopted the following new or revised forms:

  • ALTA Short Form Residential Loan Policy (6/16/07). This Policy replaces the ALTA Short Form Residential Loan Policy (6/17/06). This policy may be printed in two versions: (1) the first version that automatically incorporates the ALTA Endorsements 4.1-06, 5.1-06, 6-06, 6.2-06, and 8.1-06 and allows specific selection of other ALTA Endorsements; (2) the second version that allows specific selection of ALTA Endorsements. Schedule B is modified to include an exception for taxes and special assessments that are not yet due and payable. For simplicity, we recommend use of the second version that allows specific selection of each ALTA Endorsement.

  • ALTA Expanded Coverage Residential Loan Policy (1/1/08). This policy has been modified to improve coverage by incorporating the changes made in the 2006 ALTA Loan Policy. No substantive changes were made to the Schedules.

  • ALTA Short Form Expanded Coverage Residential Loan Policy (1/1/08). This policy incorporates the terms of the ALTA Expanded Coverage Residential Loan Policy (1/1/08). Because the ALTA Expanded Coverage Residential Loan Policy automatically incorporates certain ALTA Endorsements, this policy does not provide for selection of additional endorsements.

  • ALTA Homeowner’s Policy of Title Insurance (1/1/08). This policy also has been modified to improve coverage by incorporating the changes made in the 2006 ALTA Owner’s Policy.

  • ALTA Endorsement 23-06 (Co-Insurance – Single Policy) (1/1/08). This endorsement may be issued by a co-insurer, such as Stewart Title, and attached to a policy issued by another co-insurer. Please call Stewart Underwriting personnel if you are asked to issue this endorsement.

We are in the process of filing these forms where filing is required.

DE-CERTIFICATION OF 1992 POLICIES AND APPLICABLE ENDORSEMENTS

The ALTA Loan Policy (10/17/92), ALTA Owner's Policy (10/17/92), Short Form Loan Policy (10/21/00), and endorsements applicable only to the 1992 Policies were de-certified as ALTA Forms on June 17, 2007. These forms may be issued if available in the state and if specifically requested by the customer.

The ALTA has not amended the Residential Title Insurance Policy, the Recorded Document Guarantee, the Master Residential Loan Policy, the Limited Coverage Junior Loan Policy, the Short Form Limited Coverage Junior Loan Policy, or the U.S. Policy. These forms will not be de-certified and the endorsements applicable to those Policies will not be de-certified.

STATUS OF 2006 POLICIES

The ALTA Owner's Policy (6/17/06) and ALTA Loan Policy (6/17/06) are now available (with modifications in some states) in all states except Florida, New Mexico, and Texas. A modified version of these forms has been published for proposed adoption as of April 1, 2008 in Texas, and adoption also is expected in New Mexico.

REQUIRED USE FOR FANNIE AND FREDDIE

Fannie Mae and Freddie Mac require issuance of the 2006 ALTA Loan Policies (or Short Form) where available in the state, commencing January 1, 2008.

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.