Bulletin: NM000004

Date:
May 29, 1998
To:
All Issuing Offices in New Mexico
RE:
New Rules and Forms (1998)

Dear Associates:

The Superintendent of Insurance has ordered the following changes in New Mexico effective June 1, 1998.

Notice to Purchaser/Insured Form (NM Form 35)

This form has been amended in order to request future policyholders to initial a provision acknowledging that they may increase their policy amount by requesting an increase and paying the applicable premium. This form is updated to include currently available coverages. [13 NMAC 14.2.A.12]

Underwriter/Agency Split

The underwriter/agency split is not changed.

Basic Rates

The Basic Rates Schedule is not changed.

Title Insurance Commitment

The rules for Standard Exceptions (also known as General Exceptions) 6 and 7 are amended to note that they can be deleted. [13 NMAC 14.5.9.10]

Standard Exception 6 (navigable streams, etc.) may be deleted if a survey shows not streams, lakes, arroyos, or ponds (at a charge of $32).

Standard Exception 7 (mining claims and water) may be deleted, except for "water rights, claims or title t water" if: (1) you review the patent and except to matters in the patent; and , (2) the land is within the city limit, or is residential real property (one-to-four family), or is improved residential or commercial land of 5 acres or less. Otherwise, please call our underwriting personnel.

Availability of Increased Coverage in Future Years Form (NM Form 49)

This new form should be attached to all newly issued owner's policies. We are printing this form for your use. [13 NMAC 14.1]

ALTA Endorsement Form 9 (NM Form 50)

This new form may be issued with Loan Policies only. It may not be issue don land if the intended use of the land is residential use with four or fewer units. It may be issued on the land. The premium is 10% of the full Basic Premium Rate. The premium may not be less than $250. The remittance to the underwriter is set by the new rule - 13 NMAC 14.10.34. Our underwriting instructions (guidelines) are available through the forms reference section at the end of this bulletin. [13 NMAC 14.2.9] [13 NMAC 14.8.16]

Minimum Rate

The premium for the reissue Owner's or Leasehold Policy shall not be less than the regular minimum promulgated rate ($193) for an Owner's Policy [13 NMAC 14.9.12.1]. The premium for the second mortgage or subsequent issue Loan Policy shall not be less than the regular minimum promulgated rate ($174) for a Loan Policy. [13 NMAC 14.9.12.2]

Commitment Premium

The premium for any Commitment to Insure is $50. Each extension of the Commitment for an additional six months is $32. [13 NMAC 14.9.9.1]

Endorsement Premium

The premium for the following endorsements is $32.

Construction Loan Extension Endorsement [13 NMAC 14.9.13.2]

Construction Loan Endorsement A [13 NMAC 14.9.13.4]

Construction Loan Endorsement D [13 NMAC 14.9.13.5]

Pending Disbursement Clause insertion subsequent to issuance of policy [13 NMAC 14.9.13.6]

Deletion of Mechanic' Lien Exception on Loan Policy where evidence of priority [13 NMAC 14.9.13.7]

Assignment of Mortgage within 6 months of policy [13 NMAC 14.10.8]

Mechanic's Lien Exception Deletion in Owner's Policy where statutory period for filing has expired [13 NMAC 14.10.9]

Additional Advance [13 NMAC 14.10.11]

Variable Rate, Negative Amortization and Revolving Credit Endorsement [13 NMAC 14.10.12]

Manufactured Housing [13 NMAC 14.10.13]

Condominium [13 NMAC 14.10.14]

Planned Unit Development [13 NMAC 14.10.15]

U.S. Policy Date Down [13 NMAC 14.10.16]

Correction Endorsement caused by Insured [13 NMAC 14.10.17]

Down Date Endorsement to Loan Policy with Pending Disbursement Clause, to Construction Loan Policy, or to Foreclosure Guarantee Policy [13 NMAC 14.10.20]

Environmental Protection Lien [13 NMAC 14.10.22]

Pending Improvements Endorsement [13 NMAC 14.10.23]

Continuation Endorsement to Limited Title Search Policy [13 NMAC 14.10.25]

Revolving Credit Variable Rate Endorsement to Limited Title Search Policy [13 NMAC 14.10.26]

Owner's Creditor's rights Endorsement after issuance of Policy (no longer relevant due to use of 1992 policy) [13 NMAC 14.10.27]

Lender's Creditors' Rights Endorsement after issuance of Policy (no longer relevant due to use of 1992) [13 NMAC 14.10.28]

Deletion of Standard Exception Number 6 (Navigable streams, etc.) (prior rate was $50.) [13 NMAC 14.10.29]

Revolving Credit - Increased Credit Limit Endorsement (Plus premium for increase in coverage) [13 NMAC 14.10.30]

ALTA Residential Limited Coverage Junior Loan Policy (NM Form 45); Down Date Endorsement to Residential Limited Coverage Junior Loan Policy (NM Form 46); Revolving Credit/Variable Rate Endorsement to Residential Limited Coverage Junior Loan Policy (NM Form 47)

This policy was approved in 1997. The endorsements are effective June 1, 1998.

When you may issue

You may issue this policy if all of the following conditions are met:

the land is one-to-four family residential;

the land is in a county recorded subdivision;

you receive a copy of any title company's owner's policy issued to the person shown as Grantee in the Policy (grantee in last recorded deed);

the loan to be made is not greater than $75,000; and,

the loan is a junior equity line of credit or junior mortgage. [13 NMAC 14.7.23]

Premium

The premium for the Residential Limited Coverage Junior Loan Policy is 40% of the full Basic Premium Rate (original owner's rate). In not event may the premium be less than $65. The premium for each endorsement to the Policy is $32.

New Endorsement to Junior Policy: Approved

The Down Date (Supplemental Coverage) Endorsement (JR1) (NM For 46) and the Revolving Credit/Variable Rate Endorsement (JR2) (NM Form 47) may be issued on or after June 1, 1998.

Guidelines for these endorsements are available through the forms reference at the end of this bulletin.

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.