THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.
Bulletin: AZ000006
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Bulletin: AZ000006
Dear Associates:
A claim has resulted from the fact that a No. 5 type endorsement was issued to a lender's policy without the benefit of an inspection or proper review of the tax rolls. It was later discovered there were no improvements on the property. It appears that there will be a foreclosure and a complete loss as a result of the issuance of the endorsement. This endorsement should never be issued unless it is verified that, in fact, improvements exist on the property.
If your review of the tax rolls does not disclose improvements or it is unclear that there are improvements on the site, it is imperative that before issuing the No. 5 endorsement, an inspection be done to verify the existence or non-existence of improvements.
If you have any questions in regard to this, please feel free to contact me.
References
- Bulletins Replaced:
- None
- Related Bulletins:
- None
- Underwriting Manual:
- None
- Exceptions Manual:
- None
- Forms: