Bulletin: NY000568

Date:
July 22, 2015
To:
All New York State Agents
RE:
TIRSA Rate Manual and Rate Changes; Section 14 and New Sections 14 A and B; Effective August 1, 2015

This Bulletin is to advise you of changes to the New York State TIRSA Rate Manual.  Attached to this Bulletin is the new revised Title Insurance Rate Manual for New York State: Fifth Revision, Effective AUGUST 1, 2015.  You should continue to use the Current Rate Manual for all transactions where the premium is paid prior to August 1, 2015

Section 14: Refinance and Subordinate Mortgage has been amended to include new sections 14A and 14B:

14A Refinance Loan Same Lender Same Borrower (Residential (1-4 Family) Property only)

(1)  Whenever a new loan policy (a “New Loan Policy”) is issued at any time insuring a new loan on property, when all of the following conditions are met and subject to only the conditions in (a) through (g) of this Section 14(A), the premium for the New Loan Policy shall be 70% (a 30% discount) of the applicable refinance premium calculated under Section 14 of this manual:

(a)  the New Loan Policy insures a new loan on Land improved only by an owner occupied residential (one to four family) property or an individual residential condominium unit or an individual residential cooperative apartment.  A residential (1 to 4 family) property may include one apartment, unit or space used by the owner of the property as a professional office;

(b)  the holder of the loan or the holder of the beneficial interest in the loan being refinanced is the same as the holder of, or the holder of the beneficial interest in the new loan, including an affiliated entity or successor by merger, but not including a holder by assignment, unless the assignment is to an affiliated entity or successor by merger;

(c)  the new loan is a refinance of an existing loan by replacement with a new loan or a new loan consolidated with an existing loan;

(d)  the New Loan Policy is applied for at any time during the ownership of the property by the person or persons making the new loan; 

(e)  all of the same or some of same persons executing the new loan are the same as those persons who executed the existing loan being refinanced; 

(f)   the source of title into the parties who executed the loan being refinanced is the same as for the parties making the new loan; and

(g)  the New Loan Policy describes the same property or less as is set forth in the loan being refinanced.

New Section 14B provides:

14B Refinance Loan Same Borrower New Lender (Residential (One to Four Family) Property)

(1)  Whenever a new loan policy (a “New Loan Policy”) is issued at any time insuring a new loan, when all of the following conditions are met and subject to only the conditions in (a) through (g) of this Section 14(B), the premium for the New Loan Policy shall be 85% (a 15% discount) of the applicable refinance premium calculated under Section 14 of this manual

(a)  the New Loan Policy insures a new loan on Land improved only by an owner occupied residential (one to four family) property or an individual residential condominium unit or an individual residential cooperative apartment which may include one apartment, unit or space used by the owner of the property as a professional office;

(b)  the holder of the loan or the beneficial interest in the loan being refinanced is NOT the same as the holder of the new loan.  However, if the holder of the loan being refinanced is a successor by merger or by an assignment to an affiliated entity or a successor by merger of the holder of the loan being refinanced, section 14A will apply; 

(c)  the new loan is a refinance of an existing loan by replacement with a new loan or a new loan consolidated with an existing loan;

(d)  the Loan Policy is applied for at any time during the ownership of the property by the person or persons making the new loan;

(e)  all of the same or some of same persons executing the new loan are the same as those persons who executed the existing loan being refinanced;

(f)   the source of title into the parties who executed the loan being refinanced is the same as for the parties making the new loan; and

(g)  the New Loan Policy describes the same property or less as is set forth in the loan being refinanced.

To qualify for this new rate, the borrower must first satisfy the conditions (except for the 10 year rule) of existing section 14 as well as the conditions of 14A or 14B.  Section 14 was not amended except to change some of the verbiage to allow for new sections 14A and 14B.

The rate was changed to afford the owner of a 1-4 family dwelling, condominium unit or cooperative apartment, with an appurtenant non-residential accessory unit, such as parking space, maids quarters or professional office, an additional 30% or 15% off the already reduced rates of section 14. 

The  new 14A and 14B rates are applicable up to full loan rate based upon the greater of the full consideration paid for the vesting instrument, computed from the amount of New York State Real Estate Transfer Tax stated on the Vesting Instrument, or otherwise shown on the Vesting Instrument, or shown in the public records, or the face amounts of all existing mortgages (including the consolidated amount of consolidated or modified mortgages) made by the owner of the fee estate created by the Vesting Instrument.  Liability above the discounted insurance amount is calculated at the full premium rate.

With regard to Sections 14A(1)(e) and 14B(1)(e) please refer to Stewart Bulletin No. NY000483.   When at least one of the original mortgagors remains in title, and there have been no additional owners added, Stewart requires the refinance rate be given. When a new mortgagor is added, Stewart requires the full rate be given.

The Stewart rate calculator will be updated on August 1, 2015 to reflect these changes.  Attached are examples of the changes that you can expect to see.  The changes are to the Refinance with Payoff and Refinance with Consolidation transaction types for 1-4 family property types.

Data Entry Page:


Specific amounts to be insured:

Please pay attention to the Notice section on this page.  In the event the transaction qualifies for Rate sections 14A or 14B, disregard the 10 year limitation period required in Rate section 14 and include the full consideration paid for the “Vesting Instrument” and/or the face amount(s) of all unsatisfied mortgage made by the owner of the estate created by the “Vesting Instrument” in the boxes below the notice. 

NEW: Conditions page:  To determine of either 14A or 14B rate is applicable, you must have all or some of the same borrowers, all or some of the same property (without adding new parties to the transaction), and you must determine if the new lender is the holder of the mortgage being refinanced or consolidated holds a beneficial interest in the loan being refinanced (see examples)



The appropriate condition is checked:



The results page will show result for the overall discount. 

Please review the examples provided in the rate new rate manual or contact Agency Legal Services in the event you have any questions. 

Attachments: Section 14; Section 14A and 14B; Examples for Section 14A and 14B; Updated TIRSA Rate Manual

 

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.