- August 12, 2002
- All Issuing Offices
- Issuing Commitment and Insured Closing Letters When No Title Insurance Required
We were recently apprised of a situation in which a lender told an agent that it did not require title insurance on its proposed first trust, but that the lender did require a commitment and an insured closing letter (ICL) prior to closing.
As a reminder, our commitment is a contract with the proposed insured named on Schedule A to issue it a policy of title insurance and is issued only when a policy of title insurance is contemplated. The ICL is issued to a mortgagee "When title insurance.... is specified in connection....with closing of real estate transactions...." If no policy is contemplated, then no ICL should be issued.
You should not issue a commitment unless a title policy is ordered or an insured
closing letter if you will not be issuing a Stewart Title Guaranty Company
policy in connection with the transaction. If an ICL has been issued, it should
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.