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 asked for, 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 should 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 amount of the current unsettled balance of stated indebtedness. The Company shall be furnished such evidence as it may require validating such overdue balance, that the insolvency is not in default and that there has actually been no velocity 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 specific units in connection with a master policy covering the aggregate insolvency, including enhancements. Individual Mortgagee Policies need to be released at the Basic Rates.

2. Subsequent to Mortgagee Policy - When a Mortgagee Policy( ies) is asked for, for any factor whatsoever, on a lien currently covered by an existing Mortgagee Policy( ies), but not on a renewal or extension thereof, the new policy being in the quantity of the present overdue balance of the indebtedness, the premium for the brand-new policy shall be at the Basic Rate, however a credit for three-tenths (3/10) of said premium might be enabled.
3. Subsequent to Mortgagee Policy - When an insolvent insurance provider is put in permanent receivership by a court of proficient jurisdiction and a Mortgagee Policy( ies) is requested on a lien already covered by an existing Mortgagee Policy( ies) of said insolvent insurer, however not on a loan to use up, renew, extend or please an existing lien, the brand-new policy being in the amount of the existing overdue balance of the indebtedness, the premium for the brand-new policy shall be at the fundamental rate, however a credit for one-half of said premium shall be enabled, unless such credit would reduce 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 putting the order for a brand-new Mortgagee Policy( ies). The date of Policy for the brand-new policy( ies) shall be the very 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 issued on a First Lien, and other policy( ies) is released on Subordinate Lien( s), developed in the exact same deal, covering the exact same land or a part thereof, the premium for the First Lien policy will be calculated on the overall 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 released on a loan that fully takes up, renews, extends, or satisfies several existing liens that are already guaranteed by several existing Loan Policies, the brand-new Loan Policy should be in the quantity of the note of the new loan. The premium for the brand-new Loan Policy is reduced by a credit. The credit is determined as follows:

1. Calculate the Basic Premium on the written benefit balance of the existing loan or the original quantity of that loan, whichever is less; and
2. Multiply by the percentage listed 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 however less than eight years; or

The premium for the 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 included in the brand-new Loan Policy.

When the existing Loan Policy( ies) consisted of more than one chain of title, and the new Loan Policy also consists of one or more of the initial chains of title, the minimum Basic Premium needs to 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 multiple loans to completely use up, renew, extend, or please an existing lien insured by a single Loan Policy, the premium for each brand-new Loan Policy, is the Basic Premium. The credit calculated above should be used to the premium for the biggest Loan Policy. A credit needs to be given even if not all of the new loans are insured or if just among the brand-new loans is insured.

THIS RULE MAY NOT BE APPLIED in connection with the issuance of a series of Loan Policies released by factor of notes being allocated to specific units in connection with a master policy covering the aggregate insolvency, consisting of enhancements. Except as otherwise provided in this rule, private Loan Policies must be released at the Basic Rate.

R-9. Additional Chains of Title

In case more than one chain of title is included in the issuance (including determination of insurability of access) of any policy, the Company shall charge the minimum policy Basic Premium Rate for each extra chain. For function of applying this guideline, adjoining tracts in one county will be dealt with as one chain, offered record title to the land and record title to the gain access to 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, other than where 2 or more lots in the exact same platted neighborhood, and having the very same plat recording date, come from the very same owner, then such will be treated as one chain. If the parcels depend on more than one county, there are separate chains of title in each county. No additional chain charge might be produced decision of insurability of access to land located within a neighborhood, offered: (i) the subdivision lies in only one county, and (ii) the plat of the neighborhood has actually been lawfully approved by a licensed governmental entity, is appropriately tape-recorded, and the roadways revealed thereon have actually been devoted for public usage 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 offered in Procedural Rule P-9.

Assignment of Mortgage Endorsement (Form T-3, Endorsement Instruction III): If issued within twelve months after the date of the policy, the premium is the minimum Basic Premium Rate.
If released 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 period.
However, the optimal premium collected must not be more than 50% of the premium for the loan policy amount based on 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 additional complete or partial twelve-month period.
However, the maximum premium collected must not be more than 50% of the premium for the loan policy amount based upon the existing 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 extra premium is charged for the Loan Policy due to the fact that of an increased policy amount.
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 issued at the time the policy is issued, the premium is 25.00.
When issued 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 at the same time on numerous Loan Policies covering the same land, the premium for the first recommendation is $25.00 and the premium for additional endorsements is $0.00.
Title Manual Main Index|Section III Index

R-12. Commitment for Title Insurance

Applicable only as offered 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 shall not use to any commitment for title insurance coverage provided 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 shall be made for issuance of each Mortgagee Title Policy Binder on Interim Construction Loan. Such Binder will be issued for a regard to one year. The initial Binder may be extended for six (6) additional consecutive durations of 6 (6) months each, not to go beyond thirty-six (36) months. A premium of $25.00 will be charged for each consecutive 6 (6) month extension.
2. Upon subsequent issuance of: 1. a Mortgagee Policy on a loan to totally use up, restore, extend or satisfy a lien currently 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 versus the communicated residential or commercial property is launched prior to or synchronised with the sale, the premium for the new policy will be at the standard rate, however a credit for the premium spent for the Binder will be allowed to the purchaser of the Owner's Policy as follows: Half (50%) of the premium paid for the Binder (exclusive of extensions), if the subsequent policy is provided within one (1) year from the date of the original 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 provided.

This Rule shall not use to any Binder released prior to March 1, 1989, in which case no credit is permitted.

Notwithstanding the provision in Rate Rule R-1, it will be permissible to combine this rule with Rate Rule R-5 in the computation of the premium for a Policy. In no event will the premium collected be less than the regular minimum promulgated rate for a Mortgagee Policy.

The half (50%) credit will not apply if the Binder covers genuine residential or commercial property which is being improved for improvements other than one to 4 property units.

Title Manual Main Index|Section III Index

R-14. Foreclosed Properties

When the owner of the residential or commercial property has actually gotten exact same directly through foreclosure under a mortgage insured 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 altered from time to time, has gotten said residential or commercial property be factor of its assurance or recommendation of a mortgage insured by a Mortgagee Policy, and is offering very same, an Owner Policy may be issued on stated sale, or a Mortgagee Policy might be provided on a lien being retained in the deed conveying said residential or commercial property. If just an Owner Policy is released, the charge for that reason shall be at the Basic Rate on the total of the consideration of said sale. If only a Mortgagee policy is issued, the Basic Rate on the complete amount of the lien shall be charged. In either case, the credit of $15.00 on the whole transaction shall be allowed. In the event an Owner Policy and a Mortgagee Policy are released concurrently on a deal as offered in Rule R-5, the synchronised problem rate, along with the credit allowed by this rule, shall apply. The $15.00 credit permitted by this guideline will not apply up until the releasing Company is furnished the following:

1. At the time the policy or policies are bought, the seller will transfer to the Company, for its evaluation and use, such proof as is offered in the seller's files, including the Mortgagee Policy covering the lien foreclosed, revealing title vested in such seller. This title evidence must be maintained in the files of the Company for future referral in the occasion a claim develops under the indemnity arrangement set forth in paragraph "b" hereof.