Bulletin: OH2015002

Date:
February 26, 2015
To:
All Ohio Issuing Offices
RE:
RATES AND/OR FORMS UPDATE - New Forms Approved

Dear Associates:

The Ohio Title Insurance Rating Bureau has approved the following new Forms and Rates for use in Ohio, effective March 1, 2015:

Revisions to the following Forms were made and are now approved for use.  Please note that the corrections made to these forms are merely technical in nature and do not otherwise change the coverage under the endorsement:

ALTA Endorsement 29-06 (Interest Rate Swap Endorsement – Direct Obligation).  Adopted 02-03-10, Technical Correction 04-02-14

ALTA Endorsement 29.1-06 (Interest Rate Swap Endorsement – Additional Interest).  Adopted 02-03-10, Technical Correction 04-02-14

The following new forms have been approved for use:

ER-29.2 - OTIRB OH 29.2 INTEREST RATE SWAP ENDORSEMENT – DIRECT OBLIGATION-DEFINED AMOUNT (ALTA 29.2-06)

This endorsement to a Loan Policy, subject to the conditions stated in the endorsement, insures against loss by reason of the invalidity, unenforceability, or lack of priority of the lien of the Insured Mortgage as security for the repayment of the Swap Obligation at Date of Endorsement. This endorsement includes a provision for an Additional Amount of Insurance for a loss under the insuring provisions of the endorsement. The rate for this endorsement, if issued at the Date of Policy, is ten percent (10%) of the Original Rate calculated on the aggregate of the Amount of Insurance in Schedule A of the Loan Policy and the Additional Amount of Insurance identified in the endorsement, plus premium for the Additional Amount of Insurance at Original Rate calculated under PR-9, beginning with the highest bracket where the original policy amount was calculated. If this endorsement is issued subsequent to the Date of Policy, the rate is fifteen (15%) of the Original Rate calculated on the same aggregate of Amount of Insurance and Additional Amount of Insurance, plus premium for the Additional Amount of Insurance at Original Rate calculated under PR-9, beginning with the highest bracket where the original policy amount was calculated. The minimum rate for this endorsement is $500.00.

ER-29.3 - OTIRB OH 29.3 INTEREST RATE SWAP ENDORSEMENT – ADDITIONAL INTEREST-DEFINED AMOUNT (ALTA 29.3-06)
This endorsement to a Loan Policy, subject to the conditions stated in the endorsement, insures against loss by reason of the invalidity, unenforceability, or lack of priority of the lien of the Insured Mortgage as security for the Swap Obligation at Date of Endorsement where the Swap Obligation requires payment of additional interest as defined in said Swap Obligation. This endorsement includes a provision for an Additional Amount of Insurance for a loss under the insuring provisions of the endorsement.

The rate for this endorsement, if issued at the Date of Policy, is ten percent (10%) of the Original Rate calculated on the aggregate of the Amount of Insurance in Schedule A of the Loan Policy and the Additional Amount of Insurance identified in the endorsement, plus premium for the Additional Amount of Insurance at Original Rate calculated under PR-9, beginning with the highest bracket where the original policy amount was calculated. If this endorsement is issued subsequent to the Date of Policy, the rate is fifteen (15%) of the Original Rate calculated on the same aggregate of Amount of Insurance and Additional Amount of Insurance, plus premium for the Additional Amount of Insurance at Original Rate calculated under PR-9, beginning with the highest bracket where the original policy amount was calculated. The minimum rate for this endorsement is $500.00.

ER-40 - Tax Credit – Owner’s Policy (ALTA FORM 40-06)
This endorsement to an Owner’s Policy includes in the calculation of loss under the policy certain losses related to a “Tax Credit”, as set forth and defined therein.

This endorsement shall only be issued when the Amount of Insurance in Schedule A of the Policy includes the aggregate of the Full Value of the Land or Full Value of Leasehold Estate as benefitted by the Tax Credit.

The rate for this endorsement is $250.00.

ER-40.1 - Tax Credit – Defined Amount – Owner’s Policy (ALTA FORM 40.1-06)
This endorsement to an Owner’s Policy includes in the calculation of loss under the policy certain losses related to a “Tax Credit”, and provides for an “Additional Amount of Insurance” payable to the “Tax Credit Investor” under the endorsement as set forth and defined therein.
 
The rate for this endorsement is $250.00, plus the rate for the “Additional Amount of Insurance” which shall be the Rate under PR-1 beginning with the highest bracket where the original policy amount was calculated.

The Ohio Rate Manual becomes effective March 1, 2015.

Remember that when you are reporting and remitting, all endorsements must be properly coded with the proper transcodes.

Agents using AIM For Windows or AIM+ should contact PropertyInfo Customer Care to get the new rate(s) changes implemented.

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.