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: SA2009040
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Special Alert: SA2009040
Dear Associates:
On Friday evening, August 14, 2009, Colonial Bank, with principal offices in Montgomery, AL, was closed by the Alabama State Banking Department, and the Federal Deposit Insurance Corporation (FDIC) was named Receiver. [http://www.fdic.gov/bank/individual/failed/colonial-al.html]
The FDIC's August 14, 2009 press release states that Branch Banking and Trust Company, (BB&T), with principal offices in Winston-Salem, NC, will purchase most of the assets of Colonial Bank. [http://www.fdic.gov/news/news/press/2009/pr09143.html] No information was provided regarding the payoff of mortgage loans.
A Notice issued by BB&T states that: "Borrowers who have existing loans with the failed institution which BB&T agrees to acquire will receive a separate notice from BB&T confirming BB&T's acquisition of the loan and indicating where and how future loan payments are to be made."
At this time, we do not know if all loans held by Colonial Bank will be acquired by BB&T. You may rely upon a current payoff letter from BB&T. However, please do not assume that BB&T has or will acquire all Colonial Bank mortgage loans. We caution against sending funds to any lender for any purpose unless you have a current payoff letter from that lender and they can document, in writing, that they are servicing a specific loan.
We have no additional information regarding the approximately 6,000 mortgages that are the subject of a lawsuit between Bank of America, N.A. and Colonial Bank, described in Special Alert Bulletin SA2009039, and which the District Court for the Southern District of Florida enjoined from being transferred by Colonial Bank. If you are unable to determine that a payoff request relates to an unaffected mortgage (i.e., if you are unable to determine that the subject mortgage is not on the list), please require the lender to state in writing the following (which may be added to its payoff letter):
This loan is not subject to the Order issued on August 13, 2009, by the United States District Court for the Southern District of Florida, enjoining Colonial Bank from selling, assigning, liquidating, transferring or disposing of approximately 6,000 mortgages that are the subject of a lawsuit between Bank of America, N. A. and Colonial Bank, Case No. 09-22384.
If you have questions relating to this bulletin, please contact Stewart Legal Services or your local underwriting personnel.
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References
- Bulletins Replaced:
- None
- Related Bulletins:
- Underwriting Manual:
- None
- Exceptions Manual:
- None
- Forms:
- None