- August 06, 2015
- All Issuing Offices
- UNDERWRITING - Expediting Policy Issuance: Payoff of an Institutional Mortgage or Deed of Trust
This Bulletin reminds you of the importance of issuing title policies to the customer as soon as reasonably practicable.
The 2006 ALTA Owner's and Loan policies are designed to be capable of being issued at closing, if desired. If all requirements have been met, you do not need to wait for the transaction documents to be returned from the recording office in order to complete the policy and issue it, unless requested by the customer or otherwise customary in your jurisdiction.
Except in the case of home equity loans (HELOCs), if you pay off a mortgage or deed of trust held by an institutional lender, you may issue an Owner's or Loan policy omitting that exception as soon as you have confirmed that sufficient payment has been received by the lender or servicer (by wire or check, as applicable) pursuant to the provisions of the payoff statement. Lenders' practices regarding the issuance of a satisfaction, release, or reconveyance vary. The applicable release instrument may be sent to you, to the mortgagor, or directly to the recording office. You do not need to wait for an institutional lender to send the satisfaction, release, or reconveyance in order to issue the policy to the customer. However, if the mortgage or deed of trust to be released is held by an individual or a noninstitutional lender, you should require the satisfaction, release, or reconveyance, as applicable, to be sent to you in escrow prior to the closing, unless otherwise approved by an underwriter.
The foregoing does not alter existing requirements relating to home equity loans (HELOCs) or Company policy regarding gap coverage or documenting paid-off mortgages or deeds of trust.
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 http://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:
- MU2009001 Equity Lines
- SLS00307 2006 ALTA Forms
- SLS2008015 Paying Off Line of Credit Mortgages
- SLS2011006 Gap Coverage and Reducing the Gap
- SLS2012009 Date of Policy on Schedule A
- SLS2013014 UNDERWRITING - Documenting Paid-Off Mortgages and Deeds of Trust
- Underwriting Manual:
- 4.00 Date And Time Of Policy
- 4.20 Deeds Of Trust
- 7.00 Gap Insurance
- 12.28 Mortgages
- 17.24 Releases