Bulletin: MD000010

Dear Associates:

From time to time some of you are approached by lenders to perform last owner searches and to conduct second mortgage and home equity loan closings where a lenders title policy is not requested. Non-attorney agents are cautioned that the preparation of loan documents (particularly the Mortgage or Deed of Trust) in such transactions may be construed to constitute the unauthorized practice of law. Always insist that these documents be prepared by the lender.

The loan closing instructions issued by some lenders will direct you not to close the loan unless you are satisfied that they will have a valid second or third lien. To certify to this based upon a last owner search is very risky. Before you agree to such a condition you should insist that the instructions be qualified so as not to cover liens and encumbrances attaching prior to the date of the title Deed. This should likewise be done in cases where a limited search title policy is to be issued.

Insured closing protection letters will not be issued by this office in connection with any loan transaction in which a Stewart lenders title policy is not to be issued.

All questions and requests for clarity will be directed to the undersigned.