- August 21, 2002
- All Issuing Offices in Texas
- Texas Supplement to National Legal Bulletin NL000128 Electronic Production of Short Form Mortgagee Policies
As you know, the Texas Department of Insurance has approved the use of Short Form Mortgagee policies in Texas. Accordingly, we have changed our policies so that if you wish to laser print policy jackets you will simply notify your District Manager and our Policy Department will provide you with a block of numbers to add to the jackets you produce. If you laser print schedules only (and not policy jackets), you do not need further approval. If you use AIM for Windows or VAX AIM for policy production, you also do not need further approval.
We can also authorize you to produce and deliver Mortgagee policies electronically. Please notify your District Manager if you wish to do so. Again, our policy department will provide you with the appropriate block of numbers. If you wish to deliver residential owner policies, you must still comply with revised rule P-17. If the form is electronically produced, the information set forth in the stored form must be as originally generated in its final form and must remain unaltered and accessible. You do not need to retain a hard copy of the form as long as you retain an electronic copy.
In January 2002 Fannie Mae issued Announcement 02-01 stating that it no longer requires paper copies of documents, including insurance policies. In a letter to Stewart Title, Fannie Mae confirmed that this announcement also applied to title insurance policies. Fannie Mae requires that the title insurance policy must not be subject to unauthorized alteration. Please see National Legal Department Bulletin NL000128 Fannie Mae and Electronic Production of Policies, dated August 21, 2002 and attached to this Supplement. P-17 complies with the regulation.
Electronically produced forms do not have to have a printed official corporate seal or president's signature. You still must countersign them for them to become effective. Electronically delivered forms do not require a "hard" countersignature.
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.
- Bulletins Replaced:
- Related Bulletins:
- NL000128 Fannie Mae and Electronic Production of Policies
- Underwriting Manual:
- Exceptions Manual: