Bulletin: MI2012008

Date:
November 08, 2012
To:
All Michigan Issuing Offices
RE:
REO Sales/ Michigan State Tax Liens

Dear Associates:

In furtherance of Stewart Bulletin MI2012007, please be advised that the Company has determined that it will be willing, on a go-forward basis, to insure REO sale transactions reflecting and insuring over state tax liens recorded against the U.S. Department of Housing and Urban Development (HUD) and the Veteran Affairs (VA) for failure to rescind the homestead exemption after mortgage foreclosure. The Company requires the use of a covenant or warranty deed from HUD or the VA to the proposed purchaser.

Likewise, please be advised that the Company is willing to insure REO sale transactions reflecting and insuring over state tax liens recorded against Freddie Mac when the Company or its Agent is in receipt of an indemnity in a form substantively identical to the attached sample indemnity. The indemnity from Freddie Mac must identify the Stewart Agent or Affiliate though Stewart Title does not need to be specifically identified because the generic language in the indemnity covers "its underwriter".

Fannie Mae has settled its liens with the State of Michigan and the State has recorded a series of discharges to release those liens of record. We shall not require any type of indemnification from Fannie Mae in light of this development.

For all national banks (Bank of America, Wells Fargo or Flagstar) that may have state tax liens recorded against them, show any liens recorded in the county where the property is located. The Company would entertain insuring over same based upon an indemnity from the seller/lender submitted to the Company for review and approval.

You may use the Adverse Interests Endorsement E-3579 to insure over the state tax lien interests on the owner's or loan policy.

If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.

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:
MI2012007 REO Sales/ Michigan State Tax Liens
Underwriting Manual:
None
Exceptions Manual:
None
Forms:
None