Bulletin: LA2017002

Date:
June 02, 2017
To:
All Louisiana Issuing Offices
RE:
RATES AND/OR FORMS UPDATE - New and Revised ALTA Form and Rates Effective June 1, 2017

Dear Associates:

The Louisiana Department of Insurance has approved a Form Filing made by LATISSO effective June 1, 2017, for the commitment, policy and endorsements referenced below.

ALTA Commitment for Title Insurance Adopted 06-17-06 Technical Corrections 08-01-16

ALTA has revised the ALTA Commitment for Title Insurance to recognize court decisions holding title insurers and agents liable for negligence or negligent misrepresentation in the preparation of title insurance commitments and to provide a better-integrated document with clearer provisions, to-wit:

  • The addition of a “Notice” at the top of the document which is also incorporated into Condition 3(a), in an effort to encourage courts to uphold the limitations contained in the Notice. 
  • The incorporation of the “gap” exception into Conditions paragraph 4 (b) as well as the option to include it in Schedule B, Part II - Exceptions. 
  • The requirement for both a named Proposed Insured and a specified dollar amount of coverage to underscore the contractual nature of the business relationship with the Proposed Insured. 
  • The revision of headings, reordering and restating of certain Conditions to streamline the document. 
  • The addition of some definitions of terms included in the ALTA 2006 Owner’s and Loan policy forms for consistency. 
  • The revision of Schedule B, Part II - Exceptions to incorporate language usually added to exceptions for covenants and restrictions denying publication of an unlawful discriminatory matter. 
  • The addition of language to the introductory paragraph to Schedule B, Part II - Exceptions, to take exception for the terms and provisions of any lease or easement set forth in Schedule A as an estate or interest to be insured. 
  • The addition to Subsection 6. (d) of the Conditions, which states that the deletion or modification of a Schedule B, Part II Exception does not create an obligation to provide coverage beyond the terms of the Commitment or policy. 
  • The revision of Schedule A to add transaction identification data and issuing agency information to address issues related to the delivery system.

The prior version of the Commitment for Title Insurance (revision date 06-17-06) has not been withdrawn. However, it is anticipated that it will be withdrawn in the early part of 2018. All issuing agencies should issue the updated ALTA Commitment for Title Insurance (08-01-16 revision date) beginning June 1, 2017.

The ALTA Commitment for Title Insurance Adopted 08-01-16 has been assigned the form number LA008UN. It should be noted that a serial number is not required for this Commitment form. Jacket and Schedules that accompany will be posted to www.stewart.com/louisiana in the Forms and Policy Section. Please contact your software support team for assistance with set up.

Rate:  No Charge

ALTA Residential Limited Coverage Mortgage Modification Policy - Modified LA 12-01-14 Technical Corrections 08-01-16 (effective 06-01-17)

This is a revision to the 12-01-14 version of this policy to make technical corrections in the Conditions, Definition of Terms, Paragraph (d) (i) (A) to make reference to Section 11(b) instead of Section 12(d). 

The ALTA Residential Limited Coverage Mortgage Modification Policy - Modified LA 12-01-14 Technical Corrections 08-01-16 has been assigned the form number M-3164. The updated Schedules that accompany will be posted to www.stewart.com/louisiana in the Forms and Policy Section. Please contact your software support team for assistance with set up.

Rate has not changed and remains at $0.50 (fifty cents) per thousand of the balance of the mortgage with a minimum premium of $125.

ALTA 9-06 Restrictions Encroachments Minerals - Loan Policy 08-01-16 (effective 06-01-17)

This is a revision to the ALTA 9-06 endorsement version of 04-02-12 to address technical corrections deemed appropriate by ALTA. In Paragraph 5. (d) the words “flooding, vibration” were added and “vibration” was relocated.

The ALTA 9-06 Restrictions Encroachments Minerals - Loan Policy 08-01-16 has been assigned the form number E-9178. 

Rate has not changed and remains at 10% of the Original Rate with a minimum premium of $150.

ALTA 9.7-06 Restrictions Encroachments Minerals - Land Under Development - Loan Policy 08-01-16 (effective 06-01-17)

This is a revision to the ALTA 9.7-06 endorsement version of 04-02-12 to address technical corrections deemed appropriate by ALTA. In Paragraph 5. (d) the word “flooding” was added.

The ALTA 9.7-06 Restrictions Encroachments Minerals - Land Under Development - Loan Policy 08-01-16 has been assigned the form number E-9183. 

Rate has not changed and remains at 20% of the Original Rate, or fraction thereof, with a minimum premium of $150.

ALTA 9.10-06 Restrictions Encroachments Minerals - Current Violations - Loan Policy 08-01-16 (effective 06-01-17)

This is a revision to the ALTA 9.10-06 endorsement version of 04-02-13 to address technical corrections deemed appropriate by ALTA. In Paragraph 5. (d) the word “fracturing” was relocated and the word “flooding” was added.

The ALTA 9.10-06 Restrictions Encroachments Minerals - Current Violations - Loan Policy 08-01-16 has been assigned the form number E-9140. 

Rate has not changed and remains at 10% of the Original Rate, or any fractions thereof of the Policy amount. The minimum premium is $150.

ALTA 10.1-06 Assignment and Date Down 08-01-16 (effective 06-01-17)

This is a revision to the ALTA 10.1-06 endorsement version of 02-03-10 to address technical corrections deemed appropriate by ALTA. In Paragraph 2. (b) the words “affecting the Title” were added.

The ALTA 10.1-06 Assignment and Date Down 08-01-16 has been assigned the form number E-9245. 

Rate has not changed and remains at $100.

ALTA 18.2-06 Multiple Tax Parcels 08-01-16 (effective 06-01-17)

This is a new endorsement. It is similar to the ALTA 18.1-06 endorsement except it does not insure against loss or damage by reason of an easement, if any, described in Schedule A being cut off or disturbed by the nonpayment of real estate taxes assessed against the servient estate.

The ALTA 18.2-06 Multiple Tax Parcels 08-01-16 has been assigned the form number E-9233. 

Rate is $50.

ALTA 29-06 Interest Rate Swap - Direct Obligation 08-01-16 (effective 06-01-17)

This is a revision to the ALTA 29-06 endorsement version of 02-03-10 and 04-02-14 to address technical corrections deemed appropriate by ALTA. In Paragraph 1., the word “Policy” was changed to “policy”. In Paragraph 1. (a), the word “and” was deleted and a line was added. In Paragraph 2., the word “repayment” was changed to “payment”. In Paragraph 3., in each of the sections (a) through (e) the first word in each section was changed to lower case.

The ALTA 29-06 Interest Rate Swap - Direct Obligation 08-01-16 has been assigned the form number E-9247.  

Rate has not changed and remains, if issued at the Date of Policy, ten percent (10%) of the Original Rate. If this endorsement is issued subsequent to the Date of Policy, the rate is fifteen percent (15%) of the Original Rate. The minimum premium for this endorsement is $500.

ALTA 29.1-06 Interest Rate Swap - Additional Interest 08-01-16 (effective 06-01-17)

This is a revision to the ALTA 29.1-06 endorsement version of 02-03-10 and 04-02-14 to address technical corrections deemed appropriate by ALTA. In Paragraph 1., the word “Policy” was changed to “policy”.  In Paragraph 1. (a), the word “and” was deleted and a line was added. In Paragraph 2., the word “repayment” was changed to “payment”.  In Paragraph 3., in each of the sections (a) through (e) the first word in each section was changed to lower case. In Paragraph 3. (b), the words “stay, rejection or” were added.

The ALTA 29.1-06 Interest Rate Swap - Additional Interest 08-01-16 has been assigned the form number E-9248.

Rate has not changed and remains, if issued at the Date of Policy, ten percent (10%) of the Original Rate. If this endorsement is issued subsequent to the Date of Policy, the rate is fifteen percent (15%) of the Original Rate. The minimum premium for this endorsement is $500.

ALTA 29.2-06 Interest Rate Swap - Direct Obligation - Defined Amount 08-01-16 (effective 06-01-17)

This is a revision to the ALTA 29.2-06 endorsement version of 08-01-11 and 04-02-14 to address technical corrections deemed appropriate by ALTA. In Paragraph 1., the word “Policy” was changed to “policy”. In Paragraph 2., the word “repayment” was changed to “payment”.

The ALTA 29.2-06 Interest Rate Swap - Direct Obligation - Defined Amount 08-01-16 has been assigned the form number E-9174. 

Rate has not changed and remains, if issued at the Date of Policy, fifteen percent (15%) of the Original Rate with a minimum premium of $500. If this endorsement is issued subsequent to the Date of Policy, the rate is twenty percent (20%) of the Original Rate. The minimum premium for this endorsement is $500.

ALTA 29.3-06 Interest Rate Swap - Additional Interest - Defined Amount 08-01-16 (effective 06-01-17)

This is a revision to the ALTA 29.3-06 endorsement version of 08-01-11 and 04-02-14 to address technical corrections deemed appropriate by ALTA. In Paragraph 1., the word “Policy” was changed to “policy”. In Paragraph 2., the word “repayment” was changed to “payment”. In Paragraph 3. (b), the words “Swap Obligation” were replaced by “payment of Additional Interest”.

The ALTA 29.3-06 Interest Rate Swap - Additional Interest - Defined Amount 08-01-16 has been assigned the form number E-9175. 

Rate has not changed and remains, if issued at the Date of Policy, fifteen percent (15%) of the Original Rate with a minimum premium of $500. If this endorsement is issued subsequent to the Date of Policy, the rate is twenty percent (20%) of the Original Rate. The minimum premium for this endorsement is $500.

ALTA 35-06 Minerals and Other Subsurface Substances - Buildings 08-01-16 (effective 06-01-17)

This is a revision to the ALTA 35-06 endorsement version of 04-02-12 to address technical corrections deemed appropriate by ALTA. In Paragraph 4., the word “flooding” was added.

The ALTA 35-06 Minerals and Other Subsurface Substances - Buildings 08-01-16 has been assigned the form number E-9188. 

Rate has not changed and remains ten percent (10%) of the Original Rate for the policy and is in addition to the policy premium. The minimum premium is $250.

ALTA 35.1-06 Minerals and Other Subsurface Substances - Improvements 08-01-16 (effective 06-01-17)

This is a revision to the ALTA 35.1-06 endorsement version of 04-02-12 to address technical corrections deemed appropriate by ALTA. In Paragraph 4., the word “flooding” was added.

The ALTA 35.1-06 Minerals and Other Subsurface Substances - Improvements 08-01-16 has been assigned the form number E-9189. 

Rate has not changed and remains ten percent (10%) of the Original Rate for the policy and is in addition to the policy premium. The minimum premium is $250.

ALTA 35.2-06 Minerals and Other Subsurface Substances - Described Improvements 08-01-16 (effective 06-01-17)

This is a revision to the ALTA 35.2-06 endorsement version of 04-02-12 to address technical corrections deemed appropriate by ALTA. In Paragraph 4. (a), the word “flooding” was added.

The ALTA 35.2-06 Minerals and Other Subsurface Substances - Described Improvements 08-01-16 has been assigned the form number E-9190. 

Rate has not changed and remains ten percent (10%) of the Original Rate for the policy and is in addition to the policy premium. The minimum premium is $250.

ALTA 35.3-06 Minerals and Other Subsurface Substances - Land Under Development 08-01-16 (effective 06-01-17)

This is a revision to the ALTA 35.3-06 endorsement version of 04-02-12 to address technical corrections deemed appropriate by ALTA. In Paragraph 4. (a), the word “flooding” was added.

The ALTA 35.3-06 Minerals and Other Subsurface Substances - Land Under Development 08-01-16 has been assigned the form number E-9191. 

Rate has not changed and remains fifteen percent (15%) of the Original Rate for the policy and is in addition to the policy premium. The minimum premium is $250.

ALTA 36.6-06 Energy Project - Encroachments 08-01-16 (effective 06-01-17)

This is a revision to the ALTA 36.6-06 endorsement version of 04-02-12 to address technical corrections deemed appropriate by ALTA. In Paragraph 4. (a), the word “flooding” was added.

The ALTA 36.6-06 Energy Project - Encroachments 08-01-16 has been assigned the form number E-9198. 

Rate has not changed and remains:  When issued with a loan policy, ten percent (10%) of the Original Rate for the policy and is in addition to the premium for the policy. The minimum premium is $500. When issued with an owner policy, fifteen percent (15%) of the Original Rate for the policy and is in addition to the premium for the policy. The minimum premium is $500.

ALTA 40-06 Tax Credit - Owner Policy 04-02-14 (effective 06-01-17)

This is a new endorsement. It is issued with an Owner Policy and includes in the calculation of loss under the policy certain losses related to a “Tax Credit”, as set forth and defined therein. It shall only be issued when the Amount of Insurance in Schedule A of the Policy includes the aggregate of the Full Value of the Land or Full Value of Leasehold Estate as benefitted by the Tax Credit.

The ALTA 40-06 Tax Credit - Owner Policy 04-02-14 has been assigned the form number E-9296. 

Rate is $250.

ALTA 40.1-06 Tax Credit - Defined Amount Owner Policy 04-02-14 (effective 06-01-17)

This is a new endorsement. It is issued with an Owner Policy and includes in the calculation of loss under the policy certain losses related to a “Tax Credit”, and provides for an “Additional Amount of Insurance” payable to the Tax Credit Investor” under the endorsement as set forth and defined therein.  

The ALTA 40.1-06 Tax Credit - Defined Amount - Owner Policy 04-02-14 has been assigned the form number E-9297. 

Rate is $250.

As a reminder, other forms should not be used if a comparable ALTA version is available. If a comparable ALTA version is available, the most current version of the ALTA form available in each state should be used, unless approved by a Stewart underwriter.

The new forms will be posted to www.stewart.com/louisiana in the Forms and Policy Section. Please contact your software support team for assistance with set up.

Agents please contact PropertyInfo Customer Care or your title production software vendor to get the new rates/forms changes implemented in your system.  

Questions relating to this bulletin may be directed to Louisiana Underwriting Personnel at (800) 209-4675 or Stewart Legal Services.

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:
None
Underwriting Manual:
None
Exceptions Manual:
None
Forms:
ALTA Commitment for Title Insurance 6-17-06 Revised (08-01-16)
 
ALTA Endorsement 10.1-06 (Assignment and Date Down) Revised 02/03/10 Technical Correction 08-01-16
 
ALTA Endorsement 18.2-06 (Multiple Tax Parcel) (08-01-16)
 
ALTA Endorsement 29-06 (Interest Rate Swap Endorsement - Direct Obligation) (02-03-10) Technical Corrections (04-02-14; 08-01-16)
 
ALTA Endorsement 29.1-06 (Interest Rate Swap Endorsement - Additional Interest) (02-03-10) Technical Corrections (04-02-14; 08-01-16)
 
ALTA Endorsement 29.2-06 (Interest Rate Swap Endorsement - Direct Obligation - Defined Amount) (08-01-11) Technical Corrections (04-02-14)(08-01-16)
 
ALTA Endorsement 29.3-06 (Interest Rate Swap Endorsement - Additional Interest - Defined Amount) (08-01-11) Technical Corrections (04-02-14; 08-01-16)
 
ALTA Endorsement 35-06 (Minerals and Other Subsurface Substances - Buildings) (04-02-12) Technical Correction 08-01-16
 
ALTA Endorsement 35.1-06 (Minerals and Other Subsurface Substances - Improvements) (04-02-12) Technical Correction 08-01-16
 
ALTA Endorsement 35.2-06 (Minerals and Other Subsurface Substances - Described Improvements) (04-02-12) Technical Correction 08-01-16
 
ALTA Endorsement 35.3-06 (Minerals and Other Subsurface Substances - Land Under Development) (04-02-12) Technical Correction 08-01-16
 
ALTA Endorsement 36.6-06 (Energy Project - Encroachments) (04-02-12) Technical Correction 08-01-16
 
ALTA Endorsement 40-06 (Tax Credit - Owner’s Policy) (04-02-14)
 
ALTA Endorsement 40.1-06 (Tax Credit - Defined Amount - Owner’s Policy) (04-02-14)
 
ALTA Endorsement 9-06 (Restrictions, Encroachments, Minerals - Loan Policy) Revised 04-02-12 Technical Correction 08-01-16
 
ALTA Endorsement 9.10-06 (Restrictions, Encroachments, Minerals - Current Violations - Loan Policy) (04-02-13) Technical Correction 08-01-16
 
ALTA Endorsement 9.7-06 (Restrictions, Encroachments, Minerals - Land Under Development - Loan Policy) (04-02-12) Technical Correction 08-01-16
 
ALTA Residential Limited Coverage Mortgage Modification Policy (12-01-14) Technical Correction 08-01-16