Bulletin: FL2016003

Date:
February 16, 2016
To:
All Florida Issuing Offices
RE:
UNDERWRITING - Revised Unlawful Inducements – Florida Department of Financial Services Issues Revised Rule

Dear Associates:

Stewart Title recently issued Bulletin FL2016001 pertaining to the revised rule of the Department of Financial Services (DFS) concerning unlawful inducements. As further clarification of that rule which took effect February 9, 2016, DFS first released the attached letter dated February 5, 2016, and then in response to many comments expressed by the title industry, issued a second letter dated February 11, 2016. The second letter states that DFS believes that it is permissible for a closing agent to advance estoppel letter fees so long as they are reimbursed at the time of the closing. For your convenience, both of the letters are attached to this bulletin.

EXHIBIT 1 - DFS Letter dated February 5, 2016 and DFS Letter dated February 11, 2016 

If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.

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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.

References

Bulletins Replaced:
None
Related Bulletins:
FL2016001 UNDERWRITING - Revised Unlawful Inducements - Florida Department of Financial Services Issues Revised Rule
Underwriting Manual:
None
Exceptions Manual:
None
Forms:
None