Bulletin: OH2015001

Date:
February 03, 2015
To:
All Ohio Issuing Offices
RE:
RATES AND/OR FORMS UPDATE - New Rate and Forms Approved

Dear Associates:

The Ohio Title Insurance Rating Bureau has approved the following new Forms and Rates for use in Ohio, effective September 1, 2014:

ER-11.1 OTIRB OH-11.1 MORTGAGE MODIFICATION WITH SUBORDINATION (ALTA FORM 11.1-06, Adopted 10-22-09)

This endorsement, subject to its terms, conditions and exclusions, insures the Insured under a Loan Policy against loss or damage arising from the invalidity or unenforceability of the lien of the insured mortgage resulting from the modification of the insured mortgage; the lack of priority of the insured mortgage at the date of the endorsement; and from specified matters set forth in Paragraph 3 of the endorsement not being subordinate to the lien of the insured mortgage. The rate for this endorsement is fifty cents ($.50) per thousand of the Amount of Insurance. Minimum rate is $175.00.

When this endorsement is issued simultaneously with a new Owner's Policy covering identical land, the rate shall be $100.00 pursuant to rule PR-6, and the minimum rate for this endorsement shall not apply.

ER-11.2 OTIRB OH-11.2 MORTGAGE MODIFICATION WITH ADDITIONAL AMOUNT OF INSURANCE (ALTA FORM 11.2-06, Adopted 12-02-13)

This endorsement, subject to its terms, conditions and exclusions, insures the Insured under a Loan Policy against loss or damage arising from the invalidity or unenforceability of the lien of the insured mortgage resulting from the modification of the insured mortgage; the lack of priority of the insured mortgage at the date of the endorsement; and from specified matters set forth in Paragraph number 3(c) of the endorsement not being subordinate to the lien of the insured mortgage. In addition, the endorsement has a provision whereby the Amount of Insurance may be increased to a certain amount to be stated therein. The endorsement is for use when one of the purposes of the mortgage modification is to reflect an increase in the amount of the mortgage. The rate for this endorsement is fifty cents ($.50) per thousand of the Amount of Insurance prior to the modification of the mortgage plus premium for the increase in the Amount of Insurance as modified by the endorsement at Original Rate calculated under PR-8, beginning within the highest bracket where the original policy amount was calculated. Minimum rate is $175.00.

When this endorsement is issued simultaneously with anew Owner's Policy covering identical land, the rate shall be $100.00 pursuant to rule PR-6, and the minimum rate for this endorsement shall not apply.

Example: An existing mortgage loan with an existing Loan Policy is being modified to, among other matters; increase the amount of the mortgage loan from $1,500,000.00 to $2,500,000.00. The Amount of Insurance stated on the Loan Policy is the original amount of the mortgage loan, $1,500,000.00. The premium for the ALTA 11.2 is calculated as follows:

            $1,500,000.00 / $1,000.00 = $1,500.00 x .50                    = $750.00

            $1,000,000.00 / $1,000.00 = $1,000.00 x $2.25                = $2,250.00

            Total premium                                                                 $3,000.00

ER-42 OTIRB OH-42 COMMERCIAL LENDER GROUP (ALTA FORM 42-06, Adopted 12-02-13)

This endorsement, subject to its terms and provisions, insures the Insured under a Loan Policy against loss or damage by reason of the invalidity or unenforceability, or loss of priority of the lien of the insured mortgage caused by transfers after the Date of Policy, of portions of the Indebtedness by the Participants and provides that a Participant is an Insured.

The rate for this endorsement is five hundred dollars ($500.00).

ER-43 OTIRB OH-43 ANTI-TAINT (ALTA FORM 43-06, Adopted 12-02-13)

This endorsement, subject to its terms and provisions, insures the Insured under a Loan Policy against loss or damage by reason of the loss of priority of the lien of the Insured Mortgage, as security for the amount of the Indebtedness advanced as the Terms Loan, resulting from reductions and subsequent increases of the outstanding principal amount of the Indebtedness payable as the Revolving Credit Loan.

The rate for this endorsement is five hundred dollars ($500.00).

ER-44 OTIRB OH-44 INSURED MORTGAGE RECORDING (ALTA FORM 44-06, Adopted 12-02-13)

The endorsement, subject to its terms and provisions, insures the Insured under a Loan Policy against loss or damage sustained by the Insured by reason of the failure of the Insured Mortgage to have been recorded in the Public Records as set out in the endorsement.

The rate for this endorsement is fifty dollars ($50.00).

Revisions to the following Forms were made and are now approved for use:

ALTA Residential Limited Coverage Junior Loan Policy Revised 08-01-12

ALTA Homeowner's Policy Adopted 10-17-98, Revised 10-22-02, 01-01-08, 02-03-10,

12-02-13

ALTA Expanded Coverage Residential Loan Policy - OH Adopted 10-13-01, Revised 07-26-10, 12-02-13

ALTA Short Form Expanded Coverage Residential Loan - OH Revised 01-01-08, Technical Correction 06-23-11, Revised 04-02-14

Preliminary Judicial Report

The following Rate Rules have been modified as set forth herein effective September 1, 2014:

ER-11 OTIRB OH-11 MORTGAGE MODIFICATION (ALTA FORM 11)

This endorsement insures the insured under a Loan Policy against loss or damage, as defined in the endorsement, arising from the invalidity of a lien of the insured mortgage resulting from modification of the insured mortgage. The rate for this endorsement is fifty cents ($0.50) per thousand of the Amount of Insurance. Minimum rate is $125.00.

When this endorsement is issued simultaneously with a new Owner's Policy covering identical land, the rate shall be $100 pursuant to rule PR-6, and the minimum rate for this endorsement shall not apply.

ER-33 CONSTRUCTION LOAN DISBURSEMENT (ALTA FORM 33-06)

This endorsement may be issued in connection with a Loan Policy insuring a mortgage the proceeds of which are intended to finance the construction of improvements to the Land and which Loan Policy has been endorsed with either ALTA Form 32-06, ALTA Form 32.1-06 or ALTA Form 32.2-06. This endorsement may be used to extend the Date of Coverage as to mechanic liens on an incremental basis and to amend Schedule A and/or Schedule B of the Loan Policy.

The rate for this endorsement is $100.00.

ER-101 OTIRB OR-101 SURVEY COVERAGE, LOAN POLICY

This coverage, whether provided within the express insuring provisions of the policy issued, by the absence or deletion of a survey exception within the policy, or by endorsement expressly providing such coverage, pursuant to "evidence of survey" in compliance with Ohio Department of Insurance Bulletin 95-4, has the effect of insuring without exception for matters discoverable by a boundary survey, except as might be specifically noted in Schedule B of the policy. The rate for Loan Policy survey coverage is $50.00. If the Loan Policy survey coverage under this Rule ER-101 is provided and an ALTA Form 9 (OTIRB OH-9) endorsement is issued under the same policy, then the rate for the Loan Policy survey coverage is $25.00.

ER-101.1 OTIRB OR-101.1 SURVEY COVERAGE, OWNER'S POLICY

This coverage, whether provided within the express insuring provisions of the policy issued, by the absence or deletion of a survey exception within the policy, or by endorsement expressly providing such coverage, pursuant to "evidence of survey" in compliance with Ohio Department of Insurance Bulletin 95-4, has the effect of insuring without exception for matters discoverable by a boundary survey, except as might be specifically noted in Schedule B of the policy. The rate for Owner's Policy survey coverage is $100.00.

For a link to the Ohio Rate Manual effective September 1, 2014 click here. The new endorsements and forms approved for use in Ohio are set forth below.

Remember that when you are reporting and remitting, all endorsements must be properly coded with the proper transcodes. For a link to the current transcodes click here.

As a reminder, agents using AIM+ should contact PropertyInfo Customer Care to get the new rate changes implemented in their AIM+ system.

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.

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