Bulletin: OR2023001

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Bulletin: OR2023001

Bulletin Document
V 4
Date: July 18, 2023
To: All Oregon Issuing Offices
RE: RATES AND/OR FORMS UPDATE - Oregon Rate Manual 09-04-2023

Dear Associates:

This bulletin is sent to advise you of the most recent updated version of the OTIRO Rating Manual, which will become effective September 4, 2023, for all Oregon title insurance issuing offices. After September 4th the new version of the Rate Manual can be found on the Oregon Land Title Website, https://oregonlandtitle.com/files/otiroratemanual.pdf

Rate/rule changes were made to Sections 4.005, 5.002, 10.070 ,10.079, 10.085 as noted below:

Section 4.005  The language was revised to make it clear that the OTIRO End No 77 (LCLP Datedown) may only be issued up to 90 days from the policy date.

Section 5.002 
The section contains a new rule for commercial properties.

When the client requests coverage for mechanic’s liens that may arise based on construction activity that occurs prior to the policy but not after the policy, an insurer may calculate the premium based on the cost of construction completed prior to the policy rather than the policy liability amount.
The coverage is provided by removing “heretofore or” from Standard Exception No. 5.

Section 10.070
The number of construction lien endorsements in the package is increased to 12. The minimum premium is increased to $240.

Section 10.079
This endorsement may only be issued with the ALTA 1992 Loan Policy.

Section 10.085
This endorsement may only be issued with the 1992 and 2006 policies. It may not be issued with the 2021 policies.

OTIRO adopted a new policy form, and several new endorsements as follows:

New Policy:

ALTA Residential Limited Coverage Mortgage Modification Policy (04-02-2022.) This is ALTA’s new policy for insuring mortgage modifications. The 2006 version is also still available.

New Endorsements:

OTIRO 90 (Substitute Insured)
This endorsement may be issued with the 2021 policies. (The OTIRO 90-06 (Substitute Insured) may be issued with the 1970, 1992, and 2006.)

OTIRO 102 (Insuring Two Mortgages in One Policy) 
This endorsement may be issued with the 2021 policies. (The OTIRO 102-06 (Insuring Two Mortgages in One Policy) may be issued with the 2006 policy.)

OTIRO 223.1 (ALTA 23.1 Co-Insurance Multiple Policies)
This endorsement may be issued with both the 2006 and 2021 policies.

The following endorsements were revised to clarify and update the coverage language:

OTIRO 45 (Pro Tanto)
OTIRO 46 (Seller’s Joint Protection Owner’s Policy)
OTIRO 57 (Partial Release of Mortgage or Deed of Trust)
OTIRO 60 (Violation of Existing Setback Provisions)
OTIRO 62.2 (Standard Bondholder’s)
OTIRO 64 (Foundation)
OTIRO 67 [Mortgage Impairment after Conveyance (HUD)]
OTIRO 70 (Statutory Construction Lien)
OTIRO 76 (Date-Down Endorsement for Guarantee)
OTIRO 77 (Limited Coverage Loan Policy)
OTIRO 78 (Owner’s Inflation)
OTIRO 79.2 (Revolving Loan Credit Line Increase)
OTIRO 80 (Access Endorsement – Land Abuts Existing Street)
OTIRO 81 (Re-Recording)
OTIRO 85 (Modification of Arbitration)
OTIRO 87 (Policy Datedown)
OTIRO 88 (Limited Coverage Loan Policy Credit Line/Variable Rate)
OTIRO 89 (FNMA Balloon Mortgage)
OTIRO 90 (Substitute Insured)
OTIRO 90.2 (Substitute Insured for Trustee Sale or Foreclosure Guarantee)
OTIRO 92 (Security Assignment of Lessor’s Interest)
OTIRO 93 (Shopping Center)
OTIRO 98 [Successor Insured (Fairway)]
OTIRO 101 (Pending Improvement)
OTIRO 102-06 (Insuring Two Mortgages in One Policy)

The following endorsements were withdrawn and are no longer available in Oregon:

OTIRO 51 (Additional Advance)
OTIRO 51.1 (Additional Advance – Changes in the Record – Priority of the Advance)
OTIRO 51.2 (Additional Advance – Changes in the Record)
OTIRO 62.3 (Standard Bondholder’s Coverage – Lease or Sublease Validity)
OTIRO 69.1 (Priority of Advance for Use with Policy without exception to Unrecorded Construction Liens) OTIRO 69.2 (Priority of Advance for Use with Policy that includes an exception for Unrecorded Construction Liens)
OTIRO 77.1 (Date-Down for PIRT)
OTIRO 86 (HUD Assignment of Beneficial Interest)
OTIRO 108 (Co-Insurance with Limited Joint and Several Provision)

NOTE: Agents please contact Property Info Customer Care at customercare@stewart.com or your title production software vendor to advise them of the new rate changes and forms and request that they implement the changes in your systems effective September 4, 2023.

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:
  • None