Bulletin: CA000023

Dear Associates:

It has come to our attention that preliminary reports are being issued for amounts in excess of $10 million and/or for high risk transactions without the requisite Stewart Title Guaranty Company Underwriters Approval. This may be in direct violation of the Underwriting Agreement entered into between the title agent and Stewart Title Guaranty Company. More importantly, it prevents the Guaranty Company to assess any high or unusual risks before a report, commitment or guarantee is delivered to the customer. Therefore, please see to it that any reports, commitments or guarantees, in which it is known at the time of its issuance, that the liability to be imposed is in excess of $10 million be submitted first to the appropriate Stewart Title Guaranty underwriter before issuance to the client. In addition, if the title in question involves a loss of priority, Indian lands, railroads or wetlands, or other high risk transaction, no matter what the potential liability might be, all reports, commitments and guarantees, as applicable, must first be submitted to the appropriate Stewart Title Guaranty underwriter for approval before issuance to the client. The underwriters in California will make every effort to be available either by phone, fax, or e-mail if any last minute requests to issue a report be submitted. As you are aware, there are four senior underwriters in the State of California including, Rich Blumenthal (415) 394-9270, Fax (415) 986-5973; Debbie Nagano (800) 640-0780, Fax (916) 481-1204; Tom Thompson (800) 423-7834), Fax (818) 552-3645; Allan Wasserman (619) 692-1600, Fax (619) 299-1045. In addition, Tim Salisbury (800) 423-7834, Fax (818) 552-3645; Charlie Bussey (800) 640-0780, Fax (916) 481-1204; and Dave Robertson (408) 867-6230, Fax (408) 867-6057, can also be reached to discuss the issuance of the evidence of title before it goes out to the client.

Thank you for your cooperation.