Bulletin: SLS2024004

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Bulletin: SLS2024004

Bulletin Document

V 2

Date: January 29, 2024

To: All Issuing Offices

RE: UNDERWRITING – 2024 Reminder Bulletin

Dear Associates:

This bulletin reminds you of your obligations as a policy-issuing representative of Stewart Title Guaranty Company (STGC). 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, STGC's underwriting practices, requirements, and guidelines. These include, but are not limited to, our Underwriting Manual, Guidelines, 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:

Remote Online Notarization (RON). Click here for Bulletins and other resources relating to Remote Online Notarization (RON).

Underwriting
SLS2023020	UNDERWRITING - Loan Modifications and Subsequent Sales by Borrowers / Homeowners A modification may secure a second mortgage, deed of trust, or additional payment to HUD.
SLS2023015	UNDERWRITING - Show Me State Premium Homes, LLC v. McDonnell A judicial sale is required in order to foreclosure a deed of trust held by HUD.
SLS2023014	UNDERWRITING - MV Realty PBC, LLC Additional requirements relating to MV Realty PBC, LLC and its “Homeowner Benefit Program.”
SLS2023011	UNDERWRITING - Forfeitures (Revised) Update regarding criminal forfeitures by the U.S.
SLS2022008	UNDERWRITING - Remote Online Notarization Current requirements involving RON real estate transactions where knowledge-based authentication ("KBA") as an identity verification step cannot be used. Please also see state-specific bulletins relating to RON, where applicable, linked above.
SLS2022001	UNDERWRITING - Delaware Statutory Trusts Guidance where there is a request to insure title held directly in the name of a trust.
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.
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.
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.
General
SLS2023013	GENERAL - US Department of Treasury: Financial Crimes Enforcement Network (FinCEN) - Geographic Targeting Order: Boroughs of Manhattan, Brooklyn, Bronx, Queens and Staten Island, NY; Counties of Bexar, Tarrant, Dallas, Harris, Montgomery, Webb, and Travis, TX; Counties of Miami-Dade, Broward, Palm Beach, Hillsborough, Pasco, Pinellas, Manatee, Sarasota, Charlotte, Lee and Collier, FL; Counties of San Diego, Los Angeles, San Francisco, San Mateo, and Santa Clara, CA; Clark County, NV; King County, WA; Counties of Suffolk, Middlesex, Bristol, Essex, Norfolk, and Plymouth, MA; Cook County, IL; City or County of Baltimore, Maryland with a purchase price of $50,000 or more; The Hawaii counties of Hawaii, Maui, Kauai, or Honolulu, or the City of Honolulu; The Maryland counties of Montgomery, Anne Arundel, Prince George's, or Howard; The Virginia counties of Arlington or Fairfax, or the cities of Alexandria, Falls Church, or Fairfax; The Connecticut counties of Fairfield and Litchfield; The Colorado counties of Adams, Arapahoe, Clear Creek, Denver, Douglas, Eagle, Elbert, El Paso, Fremont, Jefferson, Mesa, Pitkin, Pueblo and Summit; and the District of Columbia.
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.
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.
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.
Claims Avoidance
SLS2023003	CLAIMS AVOIDANCE - Fraudulent Land Sales and Prevention Additional red flags and guidance for reducing fraudulent land transactions.
SLS2022004	CLAIMS AVOIDANCE - Fraudulent Land Sale Prevention Supplement to Bulletin SLS2021007. The importance of sending the confirmation “thank you” letter.
SLS2021007	CLAIMS AVOIDANCE - Fraudulent Land Sale Scheme Red flags relating to fraudulent sales of vacant properties owned by non-US citizens, located outside of the United States.
SLS2020006	CLAIMS AVOIDANCE - Spike in Attempted Wire Fraud Wire fraud attempts are on the rise due to the current coronavirus pandemic.
SLS2019003	CLAIMS AVOIDANCE - Wire Fraud Prevention Tips Tips to help consumers protect against wire fraud.
SLS2018007	CLAIMS AVOIDANCE - Stewart Title Guaranty Company Anti-Fraud Plan Stewart Title has an in-house unit which conducts investigations into alleged fraudulent activities affecting it, its affiliates, and its agents.
SLS2015006	CLAIMS AVOIDANCE - Fraudulent Releases of Deeds of Trust A Deed of Trust or Mortgage that is released with no concurrent refinance loan or deed indicating a sale of the property is a Red Flag.
Mechanic’s Liens
SLS2009007	Mechanic’s Liens Recap Required procedures and recurring issues relating to mechanic’s liens.
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
GA2014002	UNDERWRITING - Mechanic's Liens Coverage During Construction
IL2023002	UNDERWRITING - 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
MD2014002	UNDERWRITING - Mechanic’s Liens Coverage During Construction - Priority For Future Advances Established Upon Recording of Mortgage
MI2010007	Mechanic's Liens Coverage During Construction
NC2015001	UNDERWRITING - 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
UT2021001	UNDERWRITING - Mechanic's Liens Coverage During Construction on 1-4 Family Residential Land
VA2010001	Mechanic's Liens Coverage During Construction
WI2010005	Mechanic's Liens Coverage During Construction

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: