Bulletin: MI2012008

Dear Associates:

In furtherance of Stewart Bulletin MI2012007, please be advised that the Company has determined that it will be willing, on a go-forward basis, to insure REO sale transactions reflecting and insuring over state tax liens recorded against the U.S. Department of Housing and Urban Development (HUD) and the Veteran Affairs (VA) for failure to rescind the homestead exemption after mortgage foreclosure. The Company requires the use of a covenant or warranty deed from HUD or the VA to the proposed purchaser.

Likewise, please be advised that the Company is willing to insure REO sale transactions reflecting and insuring over state tax liens recorded against Freddie Mac when the Company or its Agent is in receipt of an indemnity in a form substantively identical to the attached sample indemnity. The indemnity from Freddie Mac must identify the Stewart Agent or Affiliate though Stewart Title does not need to be specifically identified because the generic language in the indemnity covers "its underwriter".

Fannie Mae has settled its liens with the State of Michigan and the State has recorded a series of discharges to release those liens of record. We shall not require any type of indemnification from Fannie Mae in light of this development.

For all national banks (Bank of America, Wells Fargo or Flagstar) that may have state tax liens recorded against them, show any liens recorded in the county where the property is located. The Company would entertain insuring over same based upon an indemnity from the seller/lender submitted to the Company for review and approval.

You may use the Adverse Interests Endorsement E-3579 to insure over the state tax lien interests on the owner's or loan policy.

If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.

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