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 need to be as initially produced, and excepted to in the Owner Policy, and not an extension or rearrangement thereof. Such Mortgagee Policy( ies) will be released in the quantity of the present overdue balance of said insolvency. The Company will be provided such evidence as it may require validating such unsettled balance, that the indebtedness is not in default and that there has been no acceleration of maturity. THIS RULE MAY NOT BE APPLIED in connection with the issuance of a series of Mortgagee Policies issued by reason of notes being assigned to specific systems in connection with a master policy covering the aggregate indebtedness, including improvements. Individual Mortgagee Policies should be released 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), however not on a renewal or extension thereof, the brand-new policy being in the amount of the existing unpaid balance of the insolvency, the premium for the brand-new policy shall be at the Basic Rate, but a credit for three-tenths (3/10) of said premium may be permitted.
3. Subsequent to Mortgagee Policy - When an insolvent insurer is positioned in irreversible receivership by a court of proficient jurisdiction and a Mortgagee Policy( ies) is asked for on a lien already covered by an existing Mortgagee Policy( ies) of stated insolvent insurer, but not on a loan to use up, restore, extend or satisfy an existing lien, the new policy being in the quantity of the current unsettled balance of the indebtedness, the premium for the new policy will be at the standard rate, but a credit for half of stated premium shall be allowed, unless such credit would minimize the premium to less than the minimum Basic Rate, in which case the rate shall be the minimum Basic Rate. The insured will give up the existing Mortgagee Policy( ies) to the Company when placing the order for a brand-new Mortgagee Policy( ies). The date of Policy for the brand-new policy( ies) will 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 Very first Lien, and other policy( ies) is provided on Subordinate Lien( s), developed in the same deal, covering the very same land or a part thereof, the premium for the First Lien policy shall be computed 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 Use Up, Renew, Extend or Satisfy an Existing Lien( s)

When a Loan Policy is provided on a loan that fully uses up, restores, extends, or pleases several existing liens that are already guaranteed by several existing Loan Policies, the brand-new Loan Policy need to remain in the amount 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 reward balance of the existing loan or the initial quantity of that loan, whichever is less; and
2. Multiply by the portion listed below for the time from the existing Loan Policy date to the new Loan Policy date: 1. 50% when 4 years or less;
2. 25% when more than 4 years however less than eight years; or

The premium for the new Loan Policy is the Basic Premium less the credit; however not less than the minimum Basic Premium.

The credit does not use 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) included more than one chain of title, and the brand-new Loan Policy likewise includes several of the initial chains of title, the minimum Basic Premium should be charged for each extra chain of title. (See Rate Rule R-9 for the meaning of "extra chain.")

When 2 or more brand-new Loan Policies are provided on multiple loans to completely use up, restore, extend, or please an existing lien guaranteed by a single Loan Policy, the premium for each new Loan Policy, is the Basic Premium. The credit computed above must be applied to the premium for the largest Loan Policy. A credit needs to be provided even if not all of the brand-new loans are guaranteed or if only among the brand-new loans is insured.

THIS RULE MAY NOT BE APPLIED in connection with the issuance of a series of Loan Policies issued by reason of notes being apportioned to specific units in connection with a master policy covering the aggregate indebtedness, including improvements. Except as otherwise supplied in this guideline, specific Loan Policies should be issued at the Basic Rate.

R-9. Additional Chains of Title

In the occasion more than one chain of title is included in the issuance (including decision 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, contiguous parcels of land in one county will be dealt with as one chain, provided 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 different chain will be dealt with as a separate chain, other than where 2 or more lots in the very same platted neighborhood, and having the same plat recording date, come from the same owner, then such shall be dealt with as one chain. If the tracts depend on more than one county, there are different chains of title in each county. No extra chain charge may be made for determination of insurability of access to land located within a neighborhood, supplied: (i) the neighborhood is located in just one county, and (ii) the plat of the neighborhood has been lawfully approved by an authorized governmental entity, is properly tape-recorded, and the roads revealed thereon have been dedicated for public use or for the usage 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, reliable 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 released 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 complete or partial twelve-month period.
However, the maximum premium gathered need to not be more than 50% of the premium for the loan policy quantity based upon the current Schedule of Basic Premium Rates
If released 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 $25.00 for each extra full or partial twelve-month duration.
However, the maximum premium collected need to not be more than 50% of the premium for the loan policy quantity based on the current 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 because 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 issued 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 numerous Planned Unit Development Endorsements (Form T-17) are issued concurrently on several Loan Policies covering the very same land, the premium for the first recommendation is $25.00 and the premium for additional recommendations is $0.00.
Title Manual Main Index|Section III Index

R-12. Commitment for Title Insurance

Applicable only as provided in Rule P-18 - The Commitment for Title Insurance will bear no premium in addition to the premium chargeable for the policy or policies released pursuant thereto, other than that this Rule R-12 will not use 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 just as offered in Rule P-16 - A premium charge of a quantity equal to the minimum policy Basic Premium Rate will be produced 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 might be extended for six (6) extra consecutive durations of six (6) months each, not to go beyond thirty-six (36) months. A premium of $25.00 shall be charged for each consecutive 6 (6) month extension.
2. Upon subsequent issuance of: 1. a Mortgagee Policy on a loan to fully take up, renew, 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 overloaded by a lien covered by a Mortgagee Title Policy Binder on Interim Construction Loan and which lien versus the conveyed residential or commercial property is released prior to or synchronised with the sale, the premium for the brand-new policy shall be at the standard rate, but a credit for the premium paid for the Binder will be permitted to the buyer of the Owner's Policy as follows: Fifty percent (50%) of the premium spent for the Binder (exclusive of extensions), if the subsequent policy is provided within one (1) year from the date of the initial Binder.

Where more than one Policy may be released on a portion of the residential or commercial property covered by the Binder, only one credit will be permitted, being on the first Policy released.

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 will be acceptable to combine this guideline with Rate Rule R-5 in the estimation of the premium for a Policy. In no occasion will the premium gathered be less than the regular minimum promulgated rate for a Mortgagee Policy.

The fifty percent (50%) credit shall not use if the Binder covers genuine residential or commercial property which is being improved for improvements besides one to four domestic units.

Title Manual Main Index|Section III Index

R-14. Foreclosed Properties

When the owner of the residential or commercial property has actually acquired same straight 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 might be changed from time to time, has actually acquired said residential or commercial property be factor of its warranty or recommendation of a mortgage guaranteed by a Mortgagee Policy, and is selling very same, an Owner Policy might be provided on said sale, or a Mortgagee Policy might be provided on a lien being kept in the deed conveying stated residential or commercial property. If only an Owner Policy is released, the charge for that reason shall be at the Basic Rate on the complete amount of the factor to consider of said sale. If only a Mortgagee policy is provided, the Basic Rate on the total of the lien will be charged. In either case, the credit of $15.00 on the entire deal shall be enabled. In the event an Owner Policy and a Mortgagee Policy are released simultaneously on a transaction as supplied in Rule R-5, the simultaneous problem rate, along with the credit enabled by this rule, will use. 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 ordered, the seller will transmit to the Company, for its examination and usage, such proof as is available in the seller's files, consisting of the Mortgagee Policy covering the lien foreclosed, showing title vested in such seller. This title evidence should be maintained in the files of the Company for future referral in the event a claim develops under the indemnity agreement set forth in paragraph "b" hereof.