- January 11, 1994
- All Florida Stewart Offices and Agents
- Mortgage Modification Agreements and Substitution Loan Rate
On May 10, 1993, we issued a bulletin to the effect that the Department of Insurance had determined that the substitution loan rate should be charged on mortgage modifications in accordance with the existing published rule found in the Administrative Code. This was to clarify some confusion in the industry where some people felt that the Department had somehow modified the Administrative Code by way of lack of enforcement.
It seems that once again there have been rumors in the industry to the effect that the Department has again disclaimed any such practice. This is incorrect.
A letter dated December 10, 1992, from W. M. Senter, Title Insurance Coordinator, to all title insurers is available. This is the same letter as was distributed with the earlier bulletin. Also a copy of a letter which was written to the President of Attorneys Title Insurance Fund in response to a written inquiry reaffirming the Department's position is available.
Accordingly, please charge the suitable rate in accordance with the published rule. If you are aware of any violations on the part of other agents/underwriters, please bring the same to my attention for transmitting to the Insurance Department.
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.