Bulletin: KY2018001

Date:
March 14, 2018
To:
All Kentucky Issuing Offices
RE:
RATES AND/OR FORMS UPDATE - New Forms for Kentucky

Dear Associates:

The following forms have been approved for use in Kentucky effective April 27, 2018:

ALTA Limited Pre-Foreclosure Policy (12-03-12) 

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 certain matters recorded in the public records on or after the date of the foreclosing mortgage. This endorsement allows for Date of Policy changes and amendments to Schedules A and B. 

ALTA Endorsement (Limited Pre-Foreclosure Date-Down) (12-03-12)

This endorsement allows for Date of Policy changes and amendments to Schedules A and B of the Limited Pre-Foreclosure Policy.

ALTA Short Form Commitment for an ALTA Short Form Residential Loan Policy (12-01-17) 

According to ALTA, this new commitment will be a companion form to the 2016 ALTA Commitment. This Short Form Commitment incorporates by reference the substantive conditions of the offer of lender’s title insurance on a residential loan transaction and is commonly used to streamline the transfer of the data necessary for a Short Form Residential Loan Policy when used on a residential loan transaction.

The ALTA Commitment contains the following notable features: 

* adds a Notice at the top of the Commitment reiterating that the Commitment is an offer to issue a Short Form Loan Policy of Title Insurance, and is not an abstract of title, report of the condition of title, and is not an opinion of title, or other representation of the status of title. 

adds a notice stating that the Commitment does not republish any covenant, condition, restriction, or limitation contained in any document referred to in the commitment to the extent that the covenant, condition, restriction, or limitation violates state or federal  law based on race, color, religion, sex, sexual orientation, gender identity, handicap, familial status, or national origin.

adds a section to Schedule A to insert Transaction Identification Data (Issuing Agent, Issuing Office, ALTA Universal ID, Loan ID Number, Commitment Number, Issuing Office File Number, Property Address, Revision Number), all for reference only.   

ALTA Endorsement 23.1-06 (Co-Insurance-Multiple Policies) Revised 08-01-17

This Endorsement is issued by a co-insurer if a lead co-insurer (the “Issuing Co-Insurer”) prepares and issues multiple (more than one) policies. The other co-insurers then issue the Co-Insurance Endorsement, which is attached to the policies of the Issuing Co-Insurer and which incorporates the terms of the policy of the Issuing Co-Insurer. The co-insurers do not prepare or issue separate policies. The Endorsement sets forth the names and addresses of the co-insurers, the policy number(s) assigned by each co-insurer (and the file number also may be shown), the applicable Amount of Insurance assumed by each co-insurer and percentage of liability assumed by each co-insurer.

The ALTA Endorsement 23.1-06 (Co-Insurance-Multiple Policies) is designed to be issued where two or more underwriters co-insure two or more title policies on different land. The ALTA Endorsement 23.1-06 is designed to be issued with ALTA Endorsement 12-06 (Aggregation-Loan) or ALTA Endorsement 12.1-06 (Aggregation-State Limits-Loan). The ALTA Endorsement 23.1-06 coordinates its coverage with the ALTA 12-06 or 12.1-06 Aggregation Endorsement, if any, attached to the policy, so that each co-insurer's liability is aggregated with that of the Issuing Co-Insurer, but only to the extent that the co-insurer issues its own ALTA Aggregation Endorsement, and each co-insurer is liable only for its percentage of liability of the total loss or damage under the Co-Insurance Policy, but in no event greater than its respective Aggregate Amount of Insurance set forth in its ALTA Aggregation Endorsement.

Please contact PropertyInfo Customer Care or your title production software vendor to have the new forms implemented in your system.

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 your state should be used, unless approved by a Stewart underwriter.

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.