Bulletin: VA000010

Dear Associates:

Enclosed please find an article entitled "The new RESPA Police". Review this article and analyze your agency's operations in light of the article.

Note that your agency must be concerned about the impact of the Real Estate Settlement Procedures Act on your business activities even if you only operate a title shop - i.e., your agency does not conduct real estate settlements. Be reminded that Virginia also has an "anti-kick-back" statute (Va. Code sec. 38.2-4614), which prohibits certain payments in any title insurance transaction, not just those related to "federally related mortgage loans" as does RESPA.

Also, you need to be aware that your agency's underwriting agreement with Stewart Title Guaranty Company requires that you conduct your title business "in a sound and ethical manner" and in accordance with rules and instructions of STGC, the Department of Insurance, and any "other regulatory body". We understand Virginia may adopt new regulations on title insurance and we will notify you as any new regulations are adopted.

Should your agency be the subject of any State or HUD investigation (or any other governmental entity), please advise your District Manager immediately. Stewart supports you and all of its agents in the lawful practice of title insurance. Stewart will assist, as may be feasible, in such investigation. Such assistance cannot include, however, the provision of legal counsel or expenses incurred by you due to an investigation.