Effective November 1, 2024 (Order 2024-8851)
R-6. Subsequent Issuance of Mortgagee Policy
1. Subsequent to Owner Policy - When a Mortgagee Policy( ies) is requested, subsequent to the issuance of an Owner Policy which excepted to the Vendor's Lien, the premium shall be one-half the Basic Rate. The lien to be insured must be as originally created, and excepted to in the Owner Policy, and not an extension or rearrangement thereof. Such Mortgagee Policy( ies) will be provided in the quantity of the current overdue balance of said insolvency. The Company shall be provided such evidence as it may need verifying such unsettled balance, that the insolvency is not in default and that there has actually been no acceleration of maturity. THIS RULE MAY NOT BE APPLIED in connection with the issuance of a series of Mortgagee Policies released by factor of notes being apportioned to private systems in connection with a master policy covering the aggregate insolvency, consisting of improvements. Individual Mortgagee Policies must be issued at the Basic Rates.
2. Subsequent to Mortgagee Policy - When a Mortgagee Policy( ies) is requested, for any factor whatsoever, on a lien already covered by an existing Mortgagee Policy( ies), but not on a renewal or extension thereof, the brand-new policy being in the quantity of the existing unsettled balance of the indebtedness, the premium for the new policy shall be at the Basic Rate, but a credit for three-tenths (3/10) of stated premium might be enabled.
3. Subsequent to Mortgagee Policy - When an insolvent insurance provider is positioned in permanent receivership by a court of qualified jurisdiction and a Mortgagee Policy( ies) is asked for on a lien already covered by an existing Mortgagee Policy( ies) of said insolvent insurer, but not on a loan to take up, restore, extend or satisfy an existing lien, the new policy remaining in the amount of the current unsettled balance of the indebtedness, the premium for the new policy will be at the basic rate, however a credit for one-half of stated premium shall be enabled, unless such credit would minimize the premium to less than the minimum Basic Rate, in which case the rate will be the minimum Basic Rate. The insured will surrender the existing Mortgagee Policy( ies) to the Company when positioning the order for a new Mortgagee Policy( ies). The date of Policy for the new policy( ies) shall be the exact same Date of Policy as the existing Mortgagee Policy( ies).
R-7. Mortgagee Policies Covering First and Subordinate Liens Issued Simultaneously
When a Mortgagee Policy is released on a First Lien, and other policy( ies) is released on Subordinate Lien( s), produced in the exact same transaction, covering the very same land or a portion thereof, the premium for the First Lien policy shall be calculated on the total of the combined liens; the premium for each Subordinate Lien policy will be $5.00.
R-8. Loan Policy on a Loan to Take Up, Renew, Extend or Satisfy an Existing Lien( s)
When a Loan Policy is issued on a loan that totally uses up, renews, extends, or pleases several existing liens that are already guaranteed by several existing Loan Policies, the new Loan Policy need to be in the quantity of the note of the brand-new loan. The premium for the new Loan Policy is lowered by a credit. The credit is calculated as follows:
1. Calculate the Basic Premium on the composed payoff balance of the existing loan or the initial amount of that loan, whichever is less; and
2. Multiply by the percentage below for the time from the existing Loan Policy date to the brand-new Loan Policy date: 1. 50% when four years or less;
2. 25% when more than four years but less than 8 years; or
The premium for the brand-new Loan Policy is the Basic Premium less the credit; but not less than the minimum Basic Premium.
The credit does not apply if any residential or commercial property not covered in the existing Loan Policy( ies) is consisted of in the new Loan Policy.
When the existing Loan Policy( ies) included more than one chain of title, and the brand-new Loan Policy likewise consists of several of the original chains of title, the minimum Basic Premium must be charged for each additional chain of title. (See Rate Rule R-9 for the definition of "extra chain.")
When 2 or more new Loan Policies are issued on several loans to completely use up, restore, extend, or satisfy an existing lien insured by a single Loan Policy, the premium for each brand-new Loan Policy, is the Basic Premium. The credit computed above should be applied to the premium for the biggest Loan Policy. A credit should be offered even if not all of the brand-new loans are insured or if only one of the new loans is insured.
THIS RULE MAY NOT BE APPLIED in connection with the issuance of a series of Loan Policies provided by reason of notes being apportioned to specific systems in connection with a master policy covering the aggregate indebtedness, consisting of improvements. Except as otherwise provided in this rule, individual Loan Policies must be released at the Basic Rate.
R-9. Additional Chains of Title
In case more than one chain of title is associated with the issuance (including decision of insurability of gain access to) of any policy, the Company shall charge the minimum policy Basic Premium Rate for each additional chain. For function of using this guideline, contiguous tracts in one county will be treated as one chain, supplied record title to the land and record title to the access is vested in one owner at the time application is made. Each noncontiguous parcel having a separate chain shall be dealt with as a different chain, except where two or more lots in the exact same platted neighborhood, and having the very same plat recording date, come from the exact same owner, then such will be treated as one chain. If the parcels of land lie in more than one county, there are different chains of title in each county. No additional chain charge may be produced decision of insurability of access to land situated within a neighborhood, offered: (i) the subdivision lies in just one county, and (ii) the plat of the neighborhood has actually been legally approved by an authorized governmental entity, is duly taped, and the roadways revealed thereon have been dedicated for public use or for the use of the owners of lots found in the neighborhood.
R-10. Owner's Policies - City Subdivision, Acreage Subdivisions, Industrial Tracts
Rate Rule R-10 is rescinded, effective September 1, 2013, due to obsolescence.
Effective January 3, 2014 (Order 2806)
R-11. Loan Policy Endorsements
Applicable only as provided in Procedural Rule P-9.
Assignment of Mortgage Endorsement (Form T-3, Endorsement Instruction III): If provided within twelve months after the date of the policy, the premium is the minimum Basic Premium Rate.
If provided more than twelve months after the date of the policy, the premium is the minimum Basic Premium Rate plus $100.00 for each extra full or partial twelve-month duration.
However, the optimal premium collected should not be more than 50% of the premium for the loan policy amount based upon the current Schedule of Basic Premium Rates
If provided within twelve months after the date of the policy, the premium is the minimum Basic Premium Rate.
If issued more than twelve months after the date of the policy, the premium is the minimum Basic Premium Rate plus $25.00 for each extra complete or partial twelve-month period.
However, the optimal premium gathered should not be more than 50% of the premium for the loan policy amount based on the present Schedule of Basic Premium Rates.
If the land in the policy is Residential Real Residential or commercial property, the premium is $50.00.
If the land in the policy is not Residential Real Residential or commercial property, the premium is $100.00.
The premium for the Variable Rate Mortgage Endorsement (Form T-33) is $20.00.
The premium for the Variable Rate Mortgage-Negative Amortization Endorsement (Form T-33.1) is: $20.00; or
$ 0.00 if an additional premium is charged for the Loan Policy due to the fact that of an increased policy quantity.
The premium for the Manufactured Housing Endorsement (Form T-31) is $20.00.
The premium for the Supplemental Coverage Manufactured Housing Unit Endorsement (Form T-31.1) is $50.00.
When released at the time the policy is issued, the premium is 25.00.
When provided after the date of the policy, the premium is $50.00.
The premium is $25.00.
However, when multiple Planned Unit Development Endorsements (Form T-17) are issued all at once on numerous Loan Policies covering the exact same land, the premium for the first recommendation is $25.00 and the premium for extra recommendations is $0.00.
Title Manual Main Index|Section III Index
R-12. Commitment for Title Insurance
Applicable just as supplied in Rule P-18 - The Commitment for Title Insurance shall bear no premium in addition to the premium chargeable for the policy or policies issued pursuant thereto, except that this Rule R-12 will not apply to any dedication for title insurance coverage released pursuant to Rate Rule R-23, or Rate Rule R-25.
R-13. Mortgagee Title Policy Binder on Interim Construction Loan
1. Applicable only as offered in Rule P-16 - A premium charge of an amount equivalent to the minimum policy Basic Premium Rate will be made for issuance of each Mortgagee Title Policy Binder on Interim Construction Loan. Such Binder shall be issued for a term of one year. The original Binder may be extended for six (6) additional successive periods of six (6) months each, not to go beyond thirty-six (36) months. A premium of $25.00 shall be charged for each successive 6 (6) month extension.
2. Upon subsequent issuance of: 1. a Mortgagee Policy on a loan to totally use up, renew, extend or satisfy a lien already covered by a Mortgagee Title Policy on Interim Construction Loan, or.
2. an Owner's Policy on the sale of a residential or commercial property which is encumbered by a lien covered by a Mortgagee Title Policy Binder on Interim Construction Loan and which lien against the communicated residential or commercial property is released prior to or simultaneous with the sale, the premium for the brand-new policy shall be at the basic rate, however a credit for the premium paid for the Binder shall be permitted to the purchaser of the Owner's Policy as follows: Fifty percent (50%) of the premium spent for the Binder (unique of extensions), if the subsequent policy is released within one (1) year from the date of the initial Binder.
Where more than one Policy might be provided on a portion of the residential or commercial property covered by the Binder, only one credit shall be permitted, being on the very first Policy issued.
This Rule shall not apply to any Binder released prior to March 1, 1989, in which case no credit is allowed.
Notwithstanding the arrangement in Rate Rule R-1, it shall be permissible to combine this guideline with Rate Rule R-5 in the computation of the premium for a Policy. In no event will the premium gathered be less than the regular minimum promulgated rate for a Mortgagee Policy.
The half (50%) credit will not use if the Binder covers genuine residential or commercial property which is being improved for enhancements aside from one to four residential units.
Title Manual Main Index|Section III Index
R-14. Foreclosed Properties
When the owner of the residential or commercial property has acquired same directly through foreclosure under a mortgage guaranteed by a Mortgagee Policy, or the Secretary of Housing and Urban Development or the Administrator of Veteran's Affairs, or as their names may be changed from time to time, has actually obtained stated residential or commercial property be reason of its assurance or recommendation of a mortgage guaranteed by a Mortgagee Policy, and is selling exact same, an Owner Policy might be released on said sale, or a Mortgagee Policy may be released on a lien being kept in the deed conveying said residential or commercial property. If just an Owner Policy is provided, the charge for that reason shall be at the Basic Rate on the full amount of the consideration of said sale. If only a Mortgagee policy is issued, the Basic Rate on the complete quantity of the lien shall be charged. In either case, the credit of $15.00 on the entire deal shall be allowed. In case an Owner Policy and a Mortgagee Policy are provided all at once on a transaction as offered in Rule R-5, the synchronised problem rate, in addition to the credit enabled by this rule, shall use. The $15.00 credit permitted by this rule will not use until the issuing Company is furnished the following:
1. At the time the policy or policies are purchased, the seller will transmit to the Company, for its evaluation and use, such proof as is offered in the seller's files, consisting of the Mortgagee Policy covering the lien foreclosed, revealing title vested in such seller. This title proof need to be retained in the files of the Company for future recommendation in case a claim occurs under the indemnity contract set forth in paragraph "b" hereof.
