- December 10, 2010
- All Illinois Issuing Offices
- New CPL Statute
Due to changes in the Title Insurance Act (215 ILCS 155/et al) effective January 1, 2011, Closing Protection Letters must be issued to Lenders, Borrowers, Buyers and Sellers for all residential real estate transactions, and non-residential transactions under $2,000,000. Along with the revision to the Statute there are also amendments to the Illinois Administrative Code (50 Ill. Adm. Code 8100.2402) that allow title insurers to charge at least a minimum fee for the Closing Protection Letters as set forth below:
A.) A minimum charge of $25 to:
1. all Buyers receiving a Closing Protection Letter in conjunction with a Purchase transaction
2. each Lender receiving a Closing Protection Letter, in conjunction with a Purchase or Refinance transaction
B.) A minimum charge of $50 to:
1. all Borrowers receiving a Closing Protection Letter on a Refinance transaction
2. all Sellers receiving a Closing Protection Letter in conjunction with a Sale transaction
The CPL forms will be available in the Stewart ICL system January 1, 2011 and you will choose the Lender, Purchaser, Lessee letter or the Seller, Lessor letter.
Stewart Title Guaranty Company will follow these guidelines and begin charging the minimum fees effective January 1, 2011. In order to avoid potential compliance problems with the new RESPA requirements Stewart Title Company offices and Stewart Title Guaranty Company issuing agents should now invoice for the minimum charges for transactions that will close on or after January 1, 2011.
You may also refer to Stewart Bulletin IL2010004 issued September 21, 2010.
If you have any questions relating to this or other bulletins, please contact your local underwriting personnel or Stewart Legal Services.
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.
- Bulletins Replaced:
- Related Bulletins:
- IL2010004 Closing Protection Letter and Charge
- Underwriting Manual:
- Exceptions Manual: