- August 04, 2014
- All Utah Issuing Offices
- UNDERWRITING - CPL Letters
There are two forms of closing protection letters now filed with the Utah Department of Insurance. The Closing Protection Letter (CPL) is available as an option to the parties of real property transactions covering property located in the State of Utah. The CPLs filed are both designed to be issued for specific real estate transactions. This protection is apart and separate from the coverage provided under the title insurance policy; however, title insurance must be purchased as a condition for a CPL to become an available option. The election for a CPL must be made prior to or at the time of closing. The protection is available to the purchaser, lender, and seller if it involves a sale/purchase transaction, or the borrower/lender in a refinance transaction.
The two CPL forms filed and approved for issuance covering property located in the State of Utah now available are as follows:
- UT1 (LENDER/PURCHASER/BORROWER) CPL Form - This form shall be generated for issuance to a Lender, Purchaser, Lessee, and/or Borrower as requested.
- UT2 (SELLER) CPL Form - This form shall be generated for issuance to a Seller only as requested.
CPL PREMIUM CHARGE AND REPORTING/REMITTANCE
A fee shall be charged to each party receiving the benefit of the CPL. The fees to be charged shall be $25 for a lender, buyer/borrower, and $50 for a seller. The entire amount of the CPL fee, rate, or charge shall be remitted to Underwriter for providing a CPL. In the event of a second mortgage or HELOC by a lender other than the primary lender, an additional fee of $25 per letter would be charged. A CPL may be issued in a commercial transaction (defined as non 1-4 family transaction) under the same terms, conditions and charges set forth above, if provided.
Issuing Agents may remit the entire CPL fee at the same time as policy premium. Please report premium and fees on a monthly basis. CPL fees may be remitted with policy premium as one check along with an itemized breakdown of the premium and CPL fees and/or copies of all policies and CPLs. This will assist our policy department with prompt processing of all premiums. Please contact your Stewart Agency Services Representative if you have any questions on how to remit fees to the Company.
EXCEPTIONS AND EXEMPTIONS
There is no fee for letters where a transaction does not close or where a letter is issued by mistake.
MODIFICATIONS TO CPL FORMS
Please forward all requests to (1) modify the closing protection coverage document or (2) reflect a different amount for a transaction that exceeds $5 million to ICLAdmin@stewart.com. Please note that all requests for closing protection coverage documents on transactions over $5 million must be accompanied by a completed "overlimits approval" form approved and executed by the local underwriter.
Closing Protection Coverage documents may be issued ONLY by use of the Stewart ICL Website: https://www.stewarticl.com. Closing Protection Coverage documents may not be (1) modified, (2) prepared by an Issuing Agent on its Letterhead or in any other format, or (3) typed, computer generated, or signed by an Issuing Agent.
The Stewart ICL Website has the most recent Closing Protection Coverage documents approved for issuance and maintains a record of the Closing Protection Coverage documents issued.
The Stewart ICL Website generates the Closing Protection Coverage documents only for current authorized Issuing Agents (or Approved Attorneys, where allowed and customary). The Closing Protection Coverage document is generated in HTML format which is to be printed and then sent to the requesting lender.
CPL CHARGES, THE GFE, AND THE HUD SETTLEMENT STATEMENT
The new CPL fee will affect Good Faith Estimate calculations. As to the placement of the CPL fees on the HUD-1, it is our opinion that the CPL fee(s) will go in the 1100 series on the HUD-1. The fee for the lender’s CPL can be shown on a blank line in the 1100 series “out of column” labeled “Lender CPL to Stewart Title Guaranty”. Whether or not the Lender’s CPL is reflected on a blank line, the charge for the Lender’s CPL must be included in the total charges in line 1101. For the fee for issuance of a CPL to the buyer or the seller, the fee will be shown on a blank line in the 1100 series and placed in the column for either the buyer or seller, as the case may be depending upon to whom the CPL is issued.
If you are currently utilizing StewartDocs or AIM, please contact a Stewart technology representative to update your system with the new CPL fee at Customer Care Center, 877-800-3132.
Please do not hesitate to call on us if you encounter a problem requiring a solution or if you have a question. We are always happy to assist.
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.