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 produced, and excepted to in the Owner Policy, and not an extension or rearrangement thereof. Such Mortgagee Policy( ies) shall be issued in the quantity of the existing overdue balance of said insolvency. The Company shall be furnished such proof as it might need validating such unpaid balance, that the indebtedness is not in default which 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 apportioned to specific units in connection with a master policy covering the aggregate insolvency, including improvements. Individual Mortgagee Policies need to 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 currently covered by an existing Mortgagee Policy( ies), however not on a renewal or extension thereof, the brand-new policy being in the quantity of the current unsettled 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 insurer is positioned in irreversible receivership by a court of skilled jurisdiction and a Mortgagee Policy( ies) is requested on a lien already covered by an existing Mortgagee Policy( ies) of said insolvent insurance company, but not on a loan to use up, renew, extend or please an existing lien, the new policy being in the quantity of the current overdue balance of the indebtedness, the premium for the new policy shall be at the fundamental rate, however a credit for one-half of said premium will be permitted, 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 shall 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 new policy( ies) will 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 provided on Subordinate Lien( s), created in the same deal, covering the very 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 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 released on a loan that fully uses up, restores, extends, or pleases one or more existing liens that are already guaranteed by several existing Loan Policies, the brand-new Loan Policy must be in the quantity of the note of the brand-new loan. The premium for the brand-new Loan Policy is reduced by a credit. The credit is calculated as follows:

1. Calculate the Basic Premium on the written reward balance of the existing loan or the initial amount of that loan, whichever is less; and
2. Multiply by the portion 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 four years but 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 new Loan Policy.

When the existing Loan Policy( ies) included more than one chain of title, and the new Loan Policy likewise 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 meaning of "additional chain.")

When 2 or more new Loan Policies are released on several loans to completely take up, restore, extend, or satisfy an existing lien insured by a single Loan Policy, the premium for each new Loan Policy, is the Basic Premium. The credit computed above must be used 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 just among the new loans is insured.

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

R-9. Additional Chains of Title

In case 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 using this guideline, contiguous parcels in one county shall be dealt with as one chain, supplied 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 shall be dealt with as a different chain, other than where two or more lots in the very same platted subdivision, and having the exact same plat recording date, belong to the same owner, then such will be dealt with as one chain. If the parcels of land lie in more than one county, there are separate chains of title in each county. No additional chain charge might be produced determination of insurability of access to land located within a subdivision, offered: (i) the subdivision is situated in only one county, and (ii) the plat of the neighborhood has actually been legally authorized by a licensed governmental entity, is duly tape-recorded, and the roadways revealed thereon have been devoted for public use or for the usage 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 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 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 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 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 $25.00 for each additional full or partial twelve-month period.
However, the maximum premium collected need to 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 additional premium is charged for the Loan Policy since 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 released, 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 numerous 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 very first endorsement is $25.00 and the premium for extra 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 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 apply to any dedication for title insurance 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 provided in Rule P-16 - A premium charge of an amount equal to the minimum policy Basic Premium Rate will 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 might 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 will be charged for each consecutive six (6) month extension.
2. Upon subsequent issuance of: 1. a Mortgagee Policy on a loan to fully 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 versus the communicated residential or commercial property is released prior to or synchronised 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 allowed to the buyer of the Owner's Policy as follows: Fifty percent (50%) of the premium paid for the Binder (unique 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, just one credit shall be permitted, being on the first Policy issued.

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

Notwithstanding the arrangement in Rate Rule R-1, it will be allowable to integrate this guideline with Rate Rule R-5 in the computation of the premium for a Policy. In no event will the superior gathered be less than the routine minimum promulgated rate for a Mortgagee Policy.

The half (50%) credit shall not use if the Binder covers genuine residential or commercial property which is being enhanced for enhancements besides one to four domestic systems.

Title Manual Main Index|Section III Index

R-14. Foreclosed Properties

When the owner of the residential or commercial property has actually gotten 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 altered from time to time, has obtained said residential or commercial property be factor of its guarantee or endorsement of a mortgage guaranteed by a Mortgagee Policy, and is offering very same, an Owner Policy may be issued on said sale, or a Mortgagee Policy may be issued on a lien being retained in the deed communicating stated residential or commercial property. If just an Owner Policy is issued, the charge for that reason will be at the Basic Rate on the total of the consideration of said sale. If only a Mortgagee policy is provided, the Basic Rate on the complete quantity of the lien will be charged. In either case, the credit of $15.00 on the entire deal shall be allowed. In the event an Owner Policy and a Mortgagee Policy are provided concurrently on a deal as provided in Rule R-5, the synchronised concern rate, along with the credit enabled by this guideline, shall apply. The $15.00 credit allowed by this rule shall not apply till the issuing 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 evidence as is readily available in the seller's files, including 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 reference in case a claim develops under the indemnity arrangement stated in paragraph "b" hereof.