Bulletin: NJ2021002

Date:
July 13, 2021
To:
All New Jersey Issuing Offices
RE:
RATES AND/OR FORMS UPDATE - Revised Rate Manual

Dear Associates:

Changes have been made to the New Jersey Rate Manual effective September 1, 2021. Please take the opportunity to familiarize yourself with the updated Rate Manual, which the Department of Banking and Insurance has approved for use in New Jersey as of September 1, 2021. This revision includes a typographical correction to an existing form as well as the addition of several new endorsements. The specific changes to existing forms are as follows: 

  1. NJRB 2-19 Short Form Residential Loan Policy - Current Violations (04/02/2015) (New Jersey Variation). A change was made to amend the reference Section 3 to Section 3(a) which reference was mistakenly made to Section 2(a). This change was to correct a typographical error. 

In addition, the following new endorsements have been approved for use in New Jersey as of September 1, 2021: 

  1. NJRB 5-181 ALTA Endorsement 40-06 (Tax Credit Endorsement). This endorsement when affixed to an Owner’s Policy insures against loss or damage, not exceeding the Amount of Insurance, sustained by the Tax Credit Investor by a reduction in a Tax Credit that is caused solely by a defect, lien, encumbrance, or other matter insured against by the policy, subject to certain exceptions found therein. The charge for the issuance of this endorsement shall be $500.00. See Section 10.108 of the rate manual. 
  2. NJRB 5-182 ALTA Endorsement 40.1-06 (Tax Credit - Defined Amount Endorsement). This endorsement, when affixed to an Owner’s Policy insures the Tax Credit Investor against loss or damage, not exceeding the Additional Amount of Insurance, sustained by the Tax Credit Investor by a reduction in a Tax Credit that is caused solely by a defect, lien, encumbrance or other matter insured against by the policy, subject to certain exceptions found therein. The charge for the issuance of this endorsement shall be the Standard Underwriting Charge for the Additional Amount of Insurance stated in the endorsement calculated from dollar one with a minimum charge of $500.00. See Section 10.109 of the rate manual. 
  3. NJRB 5-183 ALTA Endorsement 42-06 (Commercial Lender Group Endorsement). This endorsement, when affixed to a Loan Policy insures against loss or damage sustained by the Insured by reason of the invalidity or unenforceability of the lien of the Insured Mortgage caused by transfers after the Date of Policy of portions of the Indebtedness by the Participants, and loss of priority of the lien of the Insured Mortgage, which loss of priority is caused by transfers after the Date of Policy of portions of the Indebtedness by the Participants, subject to certain reservations found therein. This endorsement may only be issued if the Land is not improved with a one-four family residential dwelling. The charge for the issuance of this endorsement shall be $500.00. 

Copies of these endorsements and specific guidelines for their issuance can be found on Virtual Underwriter. 

Please contact your title production software vendor to have the new rates/forms updated in your systems.

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.