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: NL000030
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Bulletin: NL000030
Dear Associates:
Farm Credit System Institutions have over $50 billion in outstanding loans.
Recent regulations allow Farm Credit System Institutions to document that the mortgage is a first lien by either a title insurance policy or an attorney's certification. Previously, the institution also had to secure an attorney certification, even if it had a title policy.
Farm Credit System Institutions include farm credit banks, agricultural credit associations, federal land credit associations, production credit associations, agricultural credit banks, banks for cooperatives, and farm credit services (institutions) (such as "Farm Credit Services of XYZ, a production credit association").
This regulatory change should accelerate use of title policies.
The policy must be in the amount of the loan. If there are multiple tracts, the policy on one tract may be that portion of the total loan amount equal to the ratio of the appraised value of that tract to the appraised value of all tracts.
References
- Bulletins Replaced:
- None
- Related Bulletins:
- None
- Underwriting Manual:
- Exceptions Manual:
- None
- Forms:
- None