Bulletin: SLS2017001

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Bulletin: SLS2017001

Bulletin Document

V 1

Date: January 31, 2017

To: All Issuing Offices

RE: GENERAL - 2017 Reminder Bulletin

Dear Associates:

This Bulletin reminds you of your obligations as a policy-issuing representative of Stewart Title Guaranty Company ("Stewart"). In addition to possessing the customary knowledge associated with real estate closings in your jurisdiction, you are required to have specific knowledge of, and comply with, Stewart's underwriting practices, requirements, and guidelines. These include, but are not limited to, our Underwriting Manual, Bulletins, and Special Alerts. These resources, together with other important information, instructional materials, and commonly used forms are contained in Virtual Underwriter, available online at www.vuwriter.com.

Please note the following Bulletins relating to topics of current concern:

Underwriting
SLS2016004		UNDERWRITING - Condominium/Homeowner Association Lien Foreclosures Issuing offices may not insure a property where the search reveals a foreclosure of a condominium association’s lien or homeowners association’s lien without approval of a Senior Underwriter.
SLS2016002		UNDERWRITING - Foreclosures Extinguishing Subordinate Mortgages or Title Held By Fannie Mae, Freddie Mac, FDIC, or HUD Requirements to insure a foreclosure of a prior lien where there is a lien held by Fannie Mae or Freddie Mac, the Federal Deposit Insurance Corporation (FDIC), or HUD.
SLS2016001		UNDERWRITING - Foreign Investment in Real Property Tax Act (FIRPTA) FIRPTA requirements and new, increased 15% withholding as of 02/16/16.
MU2016001		UNDERWRITING - Updated Guidelines for ALTA Endorsement 4-06 and 4.1-06 (Condominium) and ALTA Endorsement 5-06 and 5.1-06 (Planned Unit Development) An Insured Mortgage may or may not have priority over a condominium association's or homeowners association's lien for future unpaid charges and assessments. Describes the differences in coverages of the referenced ALTA Endorsements with regard to lien priority.
SLS2014006		UNDERWRITING - Insuring Title Based Upon a Judgment, Order, or Decree: Appeal Period and Proper Notice When insuring title based upon a judgment, order, or decree, the order must be a final, non-appealable order.
SLS2014002		UNDERWRITING - Extrahazardous Risks Underwriting approval is required to insure extrahazardous risks. Contains examples of Extrahazardous risks.
SLS2014001		UNDERWRITING - The Perishable Agricultural Commodities Act (PACA) and The Packers and Stockyards Act (PSA) Issues relating to PACA and PSA and related requirements.
SLS2009007		Mechanic’s Liens Recap Required procedures and recurring issues relating to mechanic’s liens (non-construction loans).
SLS2009004		Use of Starters for Title Search [Revised 3-23-09] Requirements for relying on starters to begin a title search.
SLS2008015		Paying Off Line of Credit Mortgages Risks and requirements when paying off credit line mortgages.
SLS2007007		Insuring Around, Over, or Against Outstanding Enforceable Recorded Defects, Liens, and Encumbrances Requirements for insuring over, omitting or insuring the subordinate nature of an enforceable recorded defect, lien, or encumbrance.
CA2007001		Underwriting Bulletin Clarification Clarifies requirements for omitting a recorded deed of trust that has been paid.
General
SLS2013003		Search Services and Limitation of Title Insurance Underwriting Agreement Independent agents are prohibited from using the Stewart name on any non-policy product, including any search product.
SLS2012001		Privacy Policy Opt Out Option Stewart Title Company customers may opt out of information sharing.
SLS2011017		Stewart Title’s Forgery Watch Award Program Contains links to Fraud and Forgery Watch Program procedures.
SLS2011010		Avoidance of Potential Conflicts of Interest Issuing offices are prohibited from issuing title policies or closing transactions on any property in which a principal or agent has an interest, unless approved in advance.
SLS2011005		Disbursement Practices: Good Fund vs. Collected Funds [Revised 04-27-12] Recommended practices relating to the receipt and disbursement of funds.
SLS2010026		Issuing Authority and Escrow Instructions Issuing agent's authority is limited to the issuance of title commitments and policies. Issuing agents do not have the authority to bind the Company in any other way, including escrow agreements.
SLS2008001		Patriot Act Requirements and the Special Alerts Database [Revised 01/18/12] Issuing office are required to comply with the USA Patriot Act and must check the Stewart Special Alerts Database. In addition to the required search of the Special Alerts Database, if you are aware of any alert or cautionary memorandum issued by Stewart or any other underwriter, you may not close a transaction or issue a Stewart policy without disclosure to, and prior written approval from, a Stewart Legal Services representative.
SLS00171		Importance of the Positive Pay System Banking procedures that can help reduce the likelihood of escrow fraud. Each day, issuing office transmits to its bank a list of checks that it has issued. Also describes reverse positive pay.
Rates and/or Forms Update
MU2016006	RATES AND/OR FORMS UPDATE - ALTA Expanded Coverage Residential Loan Policies - Assessments Priority (04-02-15) or Current Assessments (04-02-15); and ALTA Short Form Expanded Coverage Residential Loan Policies - Assessments Priority (04-02-15) or Current Assessments (04-02-15) Describes the differences in coverages of the referenced ALTA policies with regard to insuring the lien priority of the Insured Mortgage in relation to the lien of a condominium association's or homeowners association's lien for future unpaid charges and assessments.
Claims Avoidance
SLS2016005	CLAIMS AVOIDANCE - Email Impersonation Wire Fraud Scheme Targeting Customers; FinCEN Advisory Email impersonation wire fraud scheme designed to cause the customer to wire funds to a bogus account.
Mechanic’s Liens During Construction A significant source of risk for the Company is the insurance of construction loans. Please note the following Bulletins which describe issues and requirements relating to mechanic’s liens during construction:
MU2010009	Mechanic's Liens Coverage During Construction - No Priority (2) Alaska, Colorado, Hawaii, Indiana, Maine, Missouri, Montana, New Hampshire, and Oregon
MU2010008	Mechanic's Liens Coverage During Construction - Initial Priority if No Commencement (3) Alabama, Arkansas, Arizona, California, Connecticut, Idaho, Iowa, Kansas, Minnesota, Nebraska, Nevada, Ohio, Oklahoma, Rhode Island, South Dakota, Tennessee, Utah, Washington, West Virginia, and Wyoming
MU2010007	Mechanic's Liens Coverage During Construction - Priority if No Lien or Suit Filed when Disbursing (1) District of Columbia, Kentucky, Mississippi, South Carolina, and Vermont
DE2010002	Mechanic's Liens Coverage During Construction
FL2010002	Mechanic's Liens Coverage on Lender's Policies During Construction
IL2010005	Mechanic's Liens Coverage During Construction - No Priority
LA2010010	Mechanic's Liens Coverage During Construction - Initial Priority if No Commencement
MA2010002	Mechanic's Liens Coverage During Construction
MI2010007	Mechanic's Liens Coverage During Construction
NC2010003	Mechanic's Liens Coverage During Construction - Initial Priority if No Commencement
ND2010001	Mechanic's Liens/Construction Liens Coverage During Construction - Priority if No Lien or Suit Filed when Disburse
NJ2010005	Construction Lien Claims in New Jersey
NM2015002	UNDERWRITING - Insuring Construction Loans in New Mexico; New Rules Effective August 1 and August 15, 2014
PA2010009	Mechanic's Liens Coverage During Construction - Initial Priority if No Commencement
TX2010008	Mechanic's Liens Coverage During Construction
VA2010001	Mechanic's Liens Coverage During Construction
WI2010005	Mechanic's Liens Coverage During Construction

As an accommodation, Stewart also distributes Bulletins and Special Alerts electronically. You are encouraged to sign up for electronic distribution of Bulletins and Special Alerts by contacting the Bulletin Coordinator at sylvia.lopez@stewart.com. Please also promptly forward any changes regarding your email address. Please ensure that emails from Stewart are not blocked or misdirected to your spam folder. Please add (sylvia.lopez@stewart.com) to your Address Book and Safe Senders List.

As a reminder, you are responsible for knowledge of and compliance with the information contained in all Bulletins and Special Alerts as posted on Virtual Underwriter (www.vuwriter.com), whether you receive them by electronic distribution or not.

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

For on-line viewing of this and other bulletins, please log onto www.vuwriter.com.

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.

References

Bulletins Replaced:

Related Bulletins:

Underwriting Manual:

Exceptions Manual:

Forms: