Bulletin: TX000044

Date:
June 30, 1998
To:
All Issuing Offices in Texas
RE:
Commissioner's Order for 1996 Rate Hearing

Dear Associates:

The Commissioner has signed an order based on the 1996 Biennial Rate Hearing. The order is effective August 1, 1998. The following are the matters covered in the order.

RATES

The Basic Rates are reduced 3%. The charges for endorsements which have a flat charge (except those whose rates are tied to the minimum Basic Rate) are not changed. Please call the National Legal Department in Houston for a copy of the rates, effective August 1, 1998.

Note:The new minimum Basic Rate will be $270. That means that the charge for the Binder, Assignment Endorsement, and Extra Chain Charge will be $270.

PREMIUM SPLIT

The premium split is not changed. It will remain 17.75% to the underwriters and 82.25% to the title insurance agents.

LIMITED PRE-FORECLOSURE POLICY

The Commissioner previously approved the Limited Pre-Foreclosure Policy (Form T-40), Limited Pre-Foreclosure Policy Down Date Endorsement (Form T-41) and Procedural Rule P-43 (all of which are available through the references section at the bottom of this bulletin). This order adopts Rate Rule R-26 (also available through the references section at the bottom of this bulletin). Limited Pre-Foreclosure Policies and Down Date Endorsements may be issued on or after August 1, 1998. You may secure these forms from us.

The Limited Pre-Foreclosure Policy is issued to lenders whose liens are in default and who will foreclose or acquire title by deed in lieu of foreclosure. The Policy insures as to: (1) certain matters recorded in the public records on or after the date of the recording of the Foreclosing Mortgage; (2) taxes, standby fees and governmental assessments; and, (3) general (involuntary) tax and judgment liens against the mortgagor and successors in ownership. The Policy has a Combined Schedule (no Schedule A and B). You must include a special "Schedule D" disclosure with this Policy. (Available through form T-40 in the reference section at the end of this bulletin.)

The following are our guidelines to issue the Limited Pre-Foreclosure Policy (T-40).

You may issue this Policy naming any or all of the following as insured upon request: the lender; an assignee of the loan; an attorney handling the foreclosure; and, the trustee or substitute (successor) trustee.

You may issue this Policy in the amount requested in writing by the proposed insured. We will assume this amount reflects the land value or loan balance.

Do not issue a Commitment prior to issuing this Policy.

Do not provide Express Insurance as to Exceptions.

You may delete the Arbitration provision upon request by the insured by adding the following to the Combined Schedule, Down Date Endorsement to the Policy, or T-3 Endorsement to the Policy: "Item 9 of the Conditions and Stipulations is hereby deleted."

Do a record title search of the land from the Date of Filing of the Foreclosing Mortgage. Show all matters recorded on or after the Date of Filing of the Foreclosing Mortgage in the Exceptions From Coverage of the Combined Schedule. Recorded matters to be shown would include easements, restrictions, minerals, Lis Pendens, mortgages (even if later released), mortgage assignments, mortgage modifications, releases, and title conveyances.

Do a record search of the name of the Mortgagors and any successors in title for federal tax liens (recorded within 10 years and 30 days), U.S. judgment liens, other judgment liens (recorded within 10 years), state tax liens (recorded within 3 years), and Notices of Bankruptcy (recorded on or after the Date of Recording of the Foreclosing Mortgage).

Do a search for taxes, standby fees and assessments.

Attach a Schedule D. See the format which is available through from T-40 in the reference section at the end of this bulletin.

The premium is 40% of the Basic Rate for the Amount of Insurance. The premium may not be less than $270.

The Date of Policy will be the date through which you examine title.

The following are our guidelines to issue the Limited Pre-Foreclosure Policy Down Date Endorsement (T-41).

Do a record search of the land from the Date of Policy or Date of your last Down Date Endorsement. Except to recorded matters under Paragraph 5 of the Endorsement.

Do a record search of the name of the Mortgagors and prior successors in title for federal tax liens, judgment liens, state tax liens and notices of bankruptcy since the Date of Policy or Date of your last Down Date Endorsement. If there has been a title conveyance, check the names of the grantees for federal tax liens (recorded within 10 years and 30 days), U.S. judgment liens, other judgment liens (recorded within 10 years), state tax liens (recorded within 3 years), and Notices of Bankruptcy (recorded on or after the Date of Recording of the Foreclosing Mortgage).

You do not need to do a search for taxes, standby fees and assessments. The Down Date Endorsement does not down date tax coverage.

If requested, you may do a Down Date Endorsement after the recordation of a Trustee's Deed or Deed in lieu of Foreclosure and show the deed under paragraph 5.

The premium is $50 for each Down Date Endorsement.

The Date of Policy is changed in Paragraph 3 to the date through which you examine title.

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:
None
Underwriting Manual:
TX 6.26 Foreclosures - Deed Of Trust
Exceptions Manual:
None
Forms:
T-98 TX Limited Pre-Foreclosure Policy
 
T-99 TX Limited Pre-Foreclosure Policy Down Date Endorsement