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 will be one-half the Basic Rate. The lien to be guaranteed must be as initially produced, and excepted to in the Owner Policy, and not an extension or rearrangement thereof. Such Mortgagee Policy( ies) shall be released in the quantity of the existing unpaid balance of stated indebtedness. The Company will be furnished such evidence as it might need validating such unpaid 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 provided by reason of notes being assigned to individual units in connection with a master policy covering the aggregate indebtedness, including improvements. Individual Mortgagee Policies must be provided at the Basic Rates.

2. Subsequent to Mortgagee Policy - When a Mortgagee Policy( ies) is asked for, for any factor whatsoever, on a lien currently covered by an existing Mortgagee Policy( ies), however not on a renewal or extension thereof, the brand-new policy remaining in the quantity of the present unpaid balance of the indebtedness, the premium for the brand-new policy will 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 placed 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 company, however not on a loan to use up, renew, extend or please an existing lien, the new policy remaining in the quantity of the existing unpaid balance of the insolvency, the premium for the new policy shall be at the standard rate, however a credit for one-half of stated premium shall be allowed, unless such credit would decrease the premium to less than the minimum Basic Rate, in which case the rate shall be the minimum Basic Rate. The insured shall surrender the existing Mortgagee Policy( ies) to the Company when positioning the order for a brand-new Mortgagee Policy( ies). The date of Policy for the new policy( ies) will 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 provided on a First Lien, and other policy( ies) is provided on Subordinate Lien( s), produced in the exact same transaction, covering the very same land or a portion thereof, the premium for the First Lien policy shall 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 released on a loan that fully takes up, restores, extends, or satisfies one or more existing liens that are currently insured 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 new Loan Policy is lowered by a credit. The credit is determined as follows:

1. Calculate the Basic Premium on the written benefit 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 4 years or less;
2. 25% when more than 4 years however less than 8 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 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) 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 must be charged for each extra chain of title. (See Rate Rule R-9 for the meaning of "extra chain.")

When two or more brand-new Loan Policies are provided on several loans to completely use up, restore, extend, or satisfy an existing lien guaranteed by a single Loan Policy, the premium for each brand-new Loan Policy, is the Basic Premium. The credit computed above should be used to the premium for the biggest Loan Policy. A credit needs to be offered even if not all of the new loans are guaranteed or if just one of the new loans is guaranteed.

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

R-9. Additional Chains of Title

In case more than one chain of title is involved in the issuance (including decision of insurability of access) of any policy, the Company will charge the minimum policy Basic Premium Rate for each additional chain. For function of applying this rule, contiguous parcels of land in one county will 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 different chain shall be dealt with as a different chain, other than where 2 or more lots in the very same platted subdivision, and having the same plat recording date, belong to the same owner, then such shall be treated as one chain. If the parcels of land lie in 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 situated within a subdivision, provided: (i) the neighborhood lies in only one county, and (ii) the plat of the neighborhood has actually been legally authorized by an authorized governmental entity, is properly recorded, and the roadways revealed thereon have been committed for public use or for using 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, effective 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 released more than twelve months after the date of the policy, the premium is the minimum Basic Premium Rate plus $100.00 for each additional 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 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 issued more than twelve months after the date of the policy, the premium is the minimum Basic Premium Rate plus $25.00 for each additional complete or partial twelve-month duration.
However, the maximum premium gathered must not be more than 50% of the premium for the loan policy amount based upon 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 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 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 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 supplied 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, except that this Rule R-12 will not apply 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 supplied 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 issued for a term of one year. The original Binder might be extended for six (6) additional successive durations of 6 (6) months each, not to go beyond thirty-six (36) months. A premium of $25.00 will be charged for each successive six (6) month extension.
2. Upon subsequent issuance of: 1. a Mortgagee Policy on a loan to fully take 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 encumbered by a lien covered by a Mortgagee Title Policy Binder on Interim Construction Loan and which lien against the conveyed residential or commercial property is released prior to or simultaneous with the sale, the premium for the brand-new policy shall be at the basic rate, however a credit for the premium paid for the Binder will be enabled to the purchaser of the Owner's Policy as follows: Half (50%) of the premium paid for the Binder (exclusive of extensions), if the subsequent policy is released within one (1) year from the date of the original Binder.

Where more than one Policy may be released on a part of the residential or commercial property covered by the Binder, just one credit will be allowed, being on the very first Policy issued.

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

Notwithstanding the provision in Rate Rule R-1, it will be allowable to combine this rule 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 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 acquired very 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 may be changed from time to time, has gotten said residential or commercial property be factor of its guarantee or recommendation of a mortgage insured by a Mortgagee Policy, and is selling exact same, an Owner Policy may be provided on said sale, or a Mortgagee Policy might be provided on a lien being kept in the deed communicating said residential or commercial property. If only an Owner Policy is provided, the charge for that reason shall be at the Basic Rate on the total of the consideration of said sale. If just 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 whole deal shall be enabled. In case an Owner Policy and a Mortgagee Policy are issued simultaneously on a deal as offered in Rule R-5, the synchronised issue rate, as well as the credit enabled by this rule, shall use. The $15.00 credit permitted by this guideline shall not use until the releasing Company is furnished the following:

1. At the time the policy or policies are bought, the seller will transmit to the Company, for its evaluation and use, such proof as is 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 maintained in the files of the Company for future referral in case a claim occurs under the indemnity agreement set forth in paragraph "b" hereof.