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 will be one-half the Basic Rate. The lien to be guaranteed need to 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 present unpaid balance of stated insolvency. The Company will be provided such evidence as it might require validating such overdue balance, that the indebtedness is not in default and that there has been no velocity of maturity. THIS RULE MAY NOT BE APPLIED in connection with the issuance of a series of Mortgagee Policies released by reason of notes being apportioned to specific units in connection with a master policy covering the aggregate indebtedness, consisting of enhancements. Individual Mortgagee Policies need to be provided at the Basic Rates.

2. Subsequent to Mortgagee Policy - When a Mortgagee Policy( ies) is requested, 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 current overdue balance of the indebtedness, the premium for the new policy will be at the Basic Rate, but a credit for three-tenths (3/10) of said premium may be enabled.
3. Subsequent to Mortgagee Policy - When an insolvent insurer is positioned in irreversible receivership by a court of competent jurisdiction and a Mortgagee Policy( ies) is asked for on a lien already covered by an existing Mortgagee Policy( ies) of stated insolvent insurance company, however not on a loan to use up, restore, extend or satisfy an existing lien, the new policy remaining in the quantity of the current overdue balance of the insolvency, the premium for the brand-new policy shall be at the fundamental rate, however a credit for half of said premium shall be permitted, unless such credit would lower the premium to less than the minimum Basic Rate, in which case the rate will be the minimum Basic Rate. The insured shall give up 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 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), created in the same transaction, covering the same land or a part thereof, the premium for the First Lien policy shall be calculated on the overall of the combined liens; the premium for each Subordinate Lien policy shall 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 totally uses up, restores, extends, or satisfies one or more existing liens that are currently guaranteed by one or more existing Loan Policies, the new Loan Policy need to remain in the quantity of the note of the brand-new loan. The premium for the brand-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 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 4 years but 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 apply if any residential or commercial property not covered in the existing Loan Policy( ies) is consisted of 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 also includes one or more of the initial chains of title, the minimum Basic Premium must be charged for each extra chain of title. (See Rate Rule R-9 for the definition of "extra chain.")

When two or more new Loan Policies are released on multiple loans to completely take 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 applied to the premium for the largest Loan Policy. A credit must be given even if not all of the new loans are guaranteed or if only one of the brand-new loans is guaranteed.

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

R-9. Additional Chains of Title

In the occasion more than one chain of title is included in the issuance (consisting of decision of insurability of gain access to) of any policy, the Company shall charge the minimum policy Basic Premium Rate for each extra chain. For purpose of applying this rule, adjoining tracts in one county shall be dealt with as one chain, provided 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 will be dealt with as a different chain, except 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 shall be dealt with 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 might be made for determination of insurability of access to land situated within a neighborhood, supplied: (i) the neighborhood is situated in just one county, and (ii) the plat of the subdivision has been legally approved by an authorized governmental entity, is duly taped, and the roads shown thereon have actually been committed for public usage or for making use of the owners of lots located 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 offered 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 must not be more than 50% of the premium for the loan policy quantity based on 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 additional full or partial twelve-month duration.
However, the maximum premium gathered should not be more than 50% of the premium for the loan policy amount based on 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 because 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 provided at the time the policy is provided, the premium is 25.00.
When released 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 multiple Loan Policies covering the exact same land, the premium for the first endorsement 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 just as offered in Rule P-18 - The Commitment for Title Insurance will bear no premium in addition to the premium chargeable for the policy or policies provided pursuant thereto, other than that this Rule R-12 shall not use to any dedication for title insurance coverage issued 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 a quantity equal 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 provided for a regard to one year. The original Binder may be extended for six (6) extra consecutive durations of six (6) months each, not to exceed 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 please 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 simultaneous with the sale, the premium for the new policy shall be at the standard rate, however a credit for the premium paid for the Binder shall be allowed to the purchaser of the Owner's Policy as follows: Fifty percent (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 issued on a part 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 use to any Binder provided prior to March 1, 1989, in which case no credit is permitted.

Notwithstanding the provision 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 shall the superior collected be less than the routine 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 other than one to four property 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 changed from time to time, has actually obtained said residential or commercial property be factor of its assurance or endorsement of a mortgage guaranteed by a Mortgagee Policy, and is offering same, an Owner Policy may be released on said sale, or a Mortgagee Policy may be issued on a lien being maintained in the deed communicating said residential or commercial property. If just an Owner Policy is issued, the charge therefore shall be at the Basic Rate on the complete amount of the factor to consider of said sale. If just a Mortgagee policy is released, the Basic Rate on the total of the lien shall be charged. In either case, the credit of $15.00 on the whole transaction will be allowed. In case an Owner Policy and a Mortgagee Policy are provided all at once on a deal as supplied in Rule R-5, the synchronised concern rate, as well as the credit enabled by this rule, will apply. The $15.00 credit permitted by this rule shall not apply until the releasing Company is provided the following:

1. At the time the policy or policies are purchased, the seller will send to the Company, for its examination and usage, 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 proof must be retained in the files of the Company for future reference in the event a claim emerges under the indemnity arrangement stated in paragraph "b" hereof.