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 must be as originally created, and excepted to in the Owner Policy, and not an extension or rearrangement thereof. Such Mortgagee Policy( ies) shall be released in the amount of the current overdue balance of said insolvency. The Company will be furnished such proof as it might require verifying such unsettled balance, that the indebtedness 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 individual systems in connection with a master policy covering the aggregate indebtedness, including improvements. Individual Mortgagee Policies should be issued at the Basic Rates.

2. Subsequent to Mortgagee Policy - When a Mortgagee Policy( ies) is asked for, for any reason 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 current unpaid 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 may be permitted.
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 asked for on a lien currently covered by an existing Mortgagee Policy( ies) of stated insolvent insurance provider, however not on a loan to take up, renew, extend or satisfy an existing lien, the new policy being in the amount of the present unpaid balance of the insolvency, the premium for the new policy shall be at the fundamental rate, but a credit for one-half of said premium will be allowed, unless such credit would decrease 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 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 provided on a First Lien, and other policy( ies) is issued on Subordinate Lien( s), created in the very same deal, covering the very same land or a part thereof, the premium for the First Lien policy will 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 issued on a loan that fully uses up, renews, extends, or satisfies one or more existing liens that are already guaranteed by one or more existing Loan Policies, the brand-new Loan Policy must remain in the quantity of the note of the new loan. The premium for the new Loan Policy is lowered 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 brand-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 brand-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 consisted of in the new Loan Policy.

When the existing Loan Policy( ies) consisted of 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 needs to be charged for each extra chain of title. (See Rate Rule R-9 for the meaning of "extra chain.")

When 2 or more new Loan Policies are released on multiple loans to fully use up, restore, extend, or please an existing lien guaranteed by a single Loan Policy, the premium for each brand-new Loan Policy, is the Basic Premium. The credit calculated above need to be used to the premium for the biggest Loan Policy. A credit needs to be given even if not all of the brand-new loans are insured or if just one of 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 assigned to specific systems in connection with a master policy covering the aggregate indebtedness, including improvements. Except as otherwise supplied in this rule, specific Loan Policies should be provided at the Basic Rate.

R-9. Additional Chains of Title

In the event more than one chain of title is associated with the issuance (consisting of decision of insurability of gain access to) of any policy, the Company will charge the minimum policy Basic Premium Rate for each additional chain. For purpose of using this guideline, contiguous parcels in one county shall be treated 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 will be dealt with as a different chain, other than where two or more lots in the very same platted neighborhood, and having the same plat recording date, belong to the same owner, then such will be treated as one chain. If the tracts lie in more than one county, there are separate chains of title in each county. No additional chain charge may be produced decision of insurability of access to land located within a subdivision, supplied: (i) the subdivision lies in only one county, and (ii) the plat of the subdivision has actually been legally authorized by a licensed governmental entity, is properly taped, and the roads revealed thereon have been devoted for public usage or for the use of the owners of lots found in the subdivision.

R-10. Owner's Policies - City Subdivision, Acreage Subdivisions, Industrial Tracts

Rate Rule R-10 is rescinded, efficient September 1, 2013, due to obsolescence.

Effective January 3, 2014 (Order 2806)

R-11. Loan Policy Endorsements

Applicable only as supplied 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 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 complete or partial twelve-month period.
However, the maximum premium gathered must not be more than 50% of the premium for the loan policy amount based upon the existing Schedule of Basic Premium Rates
If issued 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 $25.00 for each extra full or partial twelve-month duration.
However, the maximum premium collected must 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 provided at the time the policy is released, 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 provided at the same time on numerous Loan Policies covering the exact 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 released pursuant thereto, except that this Rule R-12 will not use to any commitment for title insurance issued 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 provided in Rule P-16 - A premium charge of an amount equal to the minimum policy Basic Premium Rate shall be produced issuance of each Mortgagee Title Policy Binder on Interim Construction Loan. Such Binder shall be issued for a term of one year. The initial Binder may be extended for 6 (6) additional successive periods of six (6) months each, not to surpass thirty-six (36) months. A premium of $25.00 shall be charged for each consecutive six (6) month extension.
2. Upon subsequent issuance of: 1. a Mortgagee Policy on a loan to totally take 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 overloaded 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 released prior to or simultaneous with the sale, the premium for the new policy shall be at the basic rate, however a credit for the premium spent for the Binder will be enabled to the buyer of the Owner's Policy as follows: Half (50%) of the premium spent for the Binder (special of extensions), if the subsequent policy is issued within one (1) year from the date of the initial Binder.

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

This Rule will not apply to any Binder provided prior to March 1, 1989, in which case no credit is enabled.

Notwithstanding the provision in Rate Rule R-1, it shall be allowable 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 routine minimum promulgated rate for a Mortgagee Policy.

The half (50%) credit shall not apply if the Binder covers real residential or commercial property which is being enhanced for enhancements aside from one to 4 residential systems.

Title Manual Main Index|Section III Index

R-14. Foreclosed Properties

When the owner of the residential or commercial property has actually acquired very same straight 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 actually obtained said residential or commercial property be factor of its warranty or recommendation of a mortgage guaranteed by a Mortgagee Policy, and is offering exact same, an Owner Policy may be issued on said sale, or a Mortgagee Policy might be provided on a lien being retained in the deed communicating stated residential or commercial property. If just an Owner Policy is provided, the charge therefore shall be at the Basic Rate on the complete quantity of the factor to consider of said sale. If only a Mortgagee policy is provided, the Basic Rate on the complete quantity of the lien shall be charged. In either case, the credit of $15.00 on the entire transaction shall be enabled. In the event an Owner Policy and a Mortgagee Policy are released simultaneously on a deal as provided in Rule R-5, the synchronised issue rate, in addition to the credit enabled by this guideline, shall apply. The $15.00 credit permitted by this rule will not use up until the issuing Company is furnished the following:

1. At the time the policy or policies are ordered, the seller will transmit to the Company, for its evaluation and use, such proof as is readily available in the seller's files, including the Mortgagee Policy covering the lien foreclosed, revealing title vested in such seller. This title evidence must be retained in the files of the Company for future reference in case a claim arises under the indemnity contract set forth in paragraph "b" hereof.