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 shall be one-half the Basic Rate. The lien to be guaranteed should be as initially produced, 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 present overdue balance of stated indebtedness. The Company will be furnished such evidence as it may need confirming such overdue balance, that the insolvency is not in default which there has been no velocity of maturity. THIS RULE MAY NOT BE APPLIED in connection with the issuance of a series of Mortgagee Policies provided by factor of notes being assigned to individual units in connection with a master policy covering the aggregate indebtedness, including improvements. Individual Mortgagee Policies need to be released at the Basic Rates.

2. Subsequent to Mortgagee Policy - When a Mortgagee Policy( ies) is requested, for any reason whatsoever, on a lien currently covered by an existing Mortgagee Policy( ies), however not on a renewal or extension thereof, the new policy remaining in the quantity of the present overdue balance of the indebtedness, the premium for the new policy will be at the Basic Rate, however a credit for three-tenths (3/10) of stated premium might be permitted.
3. Subsequent to Mortgagee Policy - When an insolvent insurer is put in irreversible receivership by a court of competent jurisdiction and a Mortgagee Policy( ies) is requested on a lien currently covered by an existing Mortgagee Policy( ies) of stated insolvent insurance provider, but not on a loan to take up, renew, extend or satisfy an existing lien, the new policy remaining in the amount of the present overdue balance of the indebtedness, the premium for the brand-new policy shall be at the basic rate, but a credit for one-half of stated premium shall be enabled, unless such credit would reduce the premium to less than the minimum Basic Rate, in which case the rate shall 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 new policy( ies) shall be the exact 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 released on Subordinate Lien( s), created in the very same transaction, covering the same land or a part thereof, the premium for the First Lien policy will be computed 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 Take Up, Renew, Extend or Satisfy an Existing Lien( s)

When a Loan Policy is provided on a loan that completely uses up, restores, extends, or satisfies several existing liens that are already guaranteed by one or more existing Loan Policies, the new Loan Policy should remain in the quantity of the note of the brand-new loan. The premium for the new Loan Policy is lowered by a credit. The credit is computed as follows:

1. Calculate the Basic Premium on the composed payoff balance of the existing loan or the initial amount 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 4 years or less;
2. 25% when more than 4 years however less than 8 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 included in the new Loan Policy.

When the existing Loan Policy( ies) included more than one chain of title, and the brand-new Loan Policy likewise consists of one or more 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 two or more new Loan Policies are issued on several loans to totally use up, renew, extend, or satisfy 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 biggest Loan Policy. A credit should be given even if not all of the brand-new loans are guaranteed or if only one of the new loans is insured.

THIS RULE MAY NOT BE APPLIED in connection with the issuance of a series of Loan Policies released by reason of notes being assigned to specific units in connection with a master policy covering the aggregate insolvency, including enhancements. Except as otherwise offered in this rule, specific Loan Policies need to be released at the Basic Rate.

R-9. Additional Chains of Title

In the event more than one chain of title is associated with the issuance (including decision of insurability of access) of any policy, the Company will charge the minimum policy Basic Premium Rate for each extra chain. For purpose of using this rule, contiguous parcels in one county shall be dealt with as one chain, supplied 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 shall be dealt with as a separate chain, except where 2 or more lots in the same platted subdivision, and having the exact same plat recording date, come from the very same owner, then such shall be treated 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 produced determination of insurability of access to land located within a subdivision, supplied: (i) the subdivision lies in just one county, and (ii) the plat of the subdivision has been lawfully authorized by a licensed governmental entity, is properly recorded, and the roads revealed thereon have been devoted for public usage or for making 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 just 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 issued 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 duration.
However, the maximum premium collected 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 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 $25.00 for each additional full or partial twelve-month period.
However, the maximum premium gathered should 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 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 released at the time the policy is provided, 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 released all at once on numerous 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 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 provided pursuant thereto, other than that this Rule R-12 shall not use to any commitment 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 provided in Rule P-16 - A premium charge of an amount equal to the minimum policy Basic Premium Rate will 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 six (6) additional successive periods of 6 (6) months each, not to surpass 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 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 will be at the fundamental rate, however a credit for the premium spent for the Binder shall be enabled to the purchaser of the Owner's Policy as follows: Fifty percent (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 may be released on a portion of the residential or commercial property covered by the Binder, just one credit shall be allowed, being on the very first Policy released.

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

Notwithstanding the arrangement in Rate Rule R-1, it will be allowable to combine this rule with Rate Rule R-5 in the computation of the premium for a Policy. In no occasion shall the exceptional gathered be less than the routine minimum promulgated rate for a Mortgagee Policy.

The fifty percent (50%) credit will not use if the Binder covers genuine residential or commercial property which is being improved for improvements 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 obtained very 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 obtained stated residential or commercial property be factor of its guarantee or recommendation of a mortgage guaranteed by a Mortgagee Policy, and is offering very same, an Owner Policy may be issued on stated sale, or a Mortgagee Policy might be issued on a lien being kept in the deed communicating stated residential or commercial property. If only an Owner Policy is provided, the charge for that reason shall be at the Basic Rate on the full amount of the consideration of said sale. If only a Mortgagee policy is released, the Basic Rate on the total of the lien will be charged. In either case, the credit of $15.00 on the entire deal will be permitted. In case an Owner Policy and a Mortgagee Policy are issued simultaneously on a deal as supplied in Rule R-5, the synchronised issue rate, as well as the credit allowed by this rule, shall apply. The $15.00 credit allowed by this guideline will not apply until the issuing Company is provided the following:

1. At the time the policy or policies are purchased, the seller will transmit to the Company, for its assessment and usage, such proof as is offered in the seller's files, consisting of the Mortgagee Policy covering the lien foreclosed, showing title vested in such seller. This title evidence must be maintained in the files of the Company for future recommendation in the occasion a claim emerges under the indemnity agreement set forth in paragraph "b" hereof.