As a result of various federal fiscal efforts and historically low long term interest rates, loan refinancingis on the rise. Attendant to that fact, this bulletin is issued to remind you of important Company guidelines and policies for the environment we will encounter.
It is necessary to balance speed, accuracy and thoroughness in the searching, examining, production and underwriting of title insurance policies, particularly if you are asked to produce commitments and close transactions under time pressure. This bulletin highlights several topical bulletins that address important recurring issues relating to searching and underwriting. They are intended to provide guidance regarding Company policies and to assist you in anticipating and resolving these issues if you encounter them in connection with refinancings or otherwise from time to time.
Please be mindful of these issues, and refer to these bulletins periodically. Please also refer to your local underwriting bulletins and state-specific practices and standards, as well as the general resources available in Virtual Underwriter.
SLS2009004: Use of Starters for Title Search. This recently-issued bulletin describes the Company's guidelines regarding the use of prior policies and commitments as a starter for your commitment.
MU000018: Title Search Requirements. This bulletin describes the Company's general search guidelines, which are subject to local customs and regulatory requirements.
SLS2007007: Insuring Around, Over, or Against Outstanding Enforceable Recorded Defects, Liens, and Encumbrances. This bulletin includes examples of "insuring around" or "insuring over" outstanding title matters and reminds you that underwriter approval is required in order to insure over an enforceable lien. See also NL000022: Insuring Around.
NL000027: Subordinations of Mortgages. This bulletin describes the importance of obtaining subordinations of any outstanding liens.
SLS2008015: Paying Off Line of Credit Mortgages. This bulletin describes the Company's general requirements for terminating and satisfying a line of credit mortgage. See also MU2009001: Equity Lines, which describes modified requirements for terminating a line of credit mortgage, applicable in certain states.
SLS00346: Gap Coverage. This bulletin describes the potential gap between closing and recording and reminds you of the Company's requirements for providing this coverage. See also MU2008008: 2006 Policies, which describes the automatic gap coverage provided in the 2006 ALTA policies.
MU2007002: Survey Requirements - Owner's and Loan Policies. This bulletin describes the Company's policy regarding survey coverage applicable to many states.
If you have questions relating to this bulletin or any of the bulletins referenced above, please contact Stewart Legal Services or your local underwriting personnel.
For on-line viewing of this and other bulletins, please log onto www.vuwriter.com.