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.
Special Alert: SLS00359
Search the Database
Before closing a transaction, all issuing offices must search the names of the parties to the transaction, including the seller, buyer/borrower, payoff lender and new lender, using the Special Alerts database. Go to the Special Alerts database to search for specific names, entities and properties.
Special Alert: SLS00359
Dear Associates:
On March 9, 2007, Stewart Title Guaranty Company ("Stewart") issued Closing Alert Bulletin SLS00352 Regarding New Century Mortgage. Then on March 16, 2007, Stewart issued Closing Alert Bulletin SLS00354 regarding New Century Mortgage which including the following message which had been posted to New Century Mortgage's website at
https://lounge.newcentury.com/cms/pdfs/nc.com/closing_agent_letter.pdf:
March 14, 2007
Dear Closing Agent:
As you have no doubt heard, New Century Mortgage Corporation and Home123 Corporation are unable to continue the origination or funding of mortgage loans at this time.
Effective immediately, you are instructed to cancel all closings for New Century loans. We are unable to fund any loans that are currently awaiting closing. You are also instructed to return all funds that you may be holding for such closings to the party or parties who delivered them to you. Please also return all original documents to the respective party who delivered them to you. We are simultaneously notifying all mortgage loan brokers who may be assisting with these loans of our action.
Finally, if there are any outstanding fees for your services, please send your invoice to:
New Century Mortgage Corporation/Home123 Corporation
18400 Von Karman Avenue, Suite 1000
Irvine, CA 92612
Attention: Compliance Department
If you have any questions, you may call 800.224.2269 for assistance.
We regret having to take this action, and we are hopeful that our current situation can be corrected in the near future so that we can continue to do business with you.
Thank you for your understanding.
Sincerely,
Robert Champion
EVP, Western Group Manager
Steve Lemon
EVP, Eastern Group Manager
On April 2, 2007, New Century Financial Corporation announced that it had filed Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware. A complete copy of the press release from New Century may be viewed at:
http://www.ncenrestructuring.com/pressReleases/pr040207.html
Effective immediately, all policy issuing agents are instructed not to accept any orders or close any transactions (including payoffs) involving either New Century Mortgage Corporation or Home123 Corporation without the written approval of the Stewart Legal Services representative listed below:
Mary Payne Thomas
Stewart Legal Services
Stewart Title Guaranty Company
1980 Post Oak Blvd,
Suite 710
Houston, Texas 77056
(800) 729-1902
Email: mthomas@stewart.com
Please contact the above representative immediately if you have any transactions involving the above referenced entities.
For on-line viewing of this bulletin, log onto http://specialalerts.stewart.com/
References
- Bulletins Replaced:
- None
- Related Bulletins:
- Underwriting Manual:
- None
- Exceptions Manual:
- None
- Forms:
- None