Bulletin: MI000015

Dear Associates:

The change in our refinance rate language first rejected by the Michigan Insurance Department has now been approved. The new rate is effective for new orders upon receipt of this bulletin.

The new language -- Zone I, Section XVI and Zone II, Section XVI -- is set forth below:

"When a first mortgage loan is refinanced by the same borrower, a credit of 50% will be given based upon the lesser of the Basic Rate based upon the face amount of the prior loan policy or the Basic Rate of the full amount of the policy insuring the new mortgage, except that if the prior mortgage is less the one year old and the application of the Reissue Rate in Section VII hereof would result in a lower premium, the lower premium will apply. The minimum charge for a policy issued under this paragraph will be $150.

"The Company may require that the previous policy or a complete copy thereof be presented to the Company or its agent for review before agreeing to provide this refinance rate."

This new refinance rate is easily computed. Just follow these steps: First, calculate the Basic Rate of the new mortgage to be insured; Second, calculate the Basic Rate of the face amount of the prior loan policy; Third, calculate the refinance credit by dividing the lesser of these two amounts in half (i.e. 50%); and Fourth, subtract the refinance credit from the Basic Rate calculated for the new mortgage to be insured (i.e. step one). This new language limits the credit to 50% of the premium on the smaller of the two mortgages.

The revised pages for our manual of charges are attached.

Please note that all title orders received prior to the effective date must be processed at the old rate. Please contact Company counsel with any questions.