Bulletin: IL2010006

Dear Associates:

Due to changes in the Title Insurance Act (215 ILCS 155/et al) effective January 1, 2011, Closing Protection Letters must be issued to Lenders, Borrowers, Buyers and Sellers for all residential real estate transactions, and non-residential transactions under $2,000,000. Along with the revision to the Statute there are also amendments to the Illinois Administrative Code (50 Ill. Adm. Code 8100.2402) that allow title insurers to charge at least a minimum fee for the Closing Protection Letters as set forth below:

A.) A minimum charge of $25 to:

1. all Buyers receiving a Closing Protection Letter in conjunction with a Purchase transaction

2. each Lender receiving a Closing Protection Letter, in conjunction with a Purchase or Refinance transaction

B.) A minimum charge of $50 to:

1. all Borrowers receiving a Closing Protection Letter on a Refinance transaction

2. all Sellers receiving a Closing Protection Letter in conjunction with a Sale transaction

The CPL forms will be available in the Stewart ICL system January 1, 2011 and you will choose the Lender, Purchaser, Lessee letter or the Seller, Lessor letter.

https://www.stewarticl.com/ICL.asp?/default_stg.asp

Stewart Title Guaranty Company will follow these guidelines and begin charging the minimum fees effective January 1, 2011. In order to avoid potential compliance problems with the new RESPA requirements Stewart Title Company offices and Stewart Title Guaranty Company issuing agents should now invoice for the minimum charges for transactions that will close on or after January 1, 2011.

You may also refer to Stewart Bulletin IL2010004 issued September 21, 2010.

If you have any questions relating to this or other bulletins, please contact your local underwriting personnel or Stewart Legal Services.

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