Guidelines: Clearing a Potential Match with the Special Alerts Database

[Rev 04-06-23]

* *  If you believe that you have a potential match with the Stewart Special Alerts Database, please read these guidelines before sending an inquiry. These Guidelines are revised from time to time. Please check the revision date to be sure that you are reading the most current version.  * *

All issuing offices must search the names of the parties to the transaction, including the seller, buyer, borrower, payoff lender and new lender, using the Special Alerts database, which may be accessed at https://specialalerts.stewart.com/Search or as a link from Virtual Underwriter.

If there is a match with the Stewart Special Alerts Database, issuing offices are instructed not to accept any orders, issue any title commitments or preliminary reports, or close any transactions, without clearance.

The Stewart Special Alerts Database contains names and addresses from several sources:

A.  Special Alerts (“SA”) issued by Stewart Title Guaranty Company (STG) in Houston,

B.  Closing Alerts (“NYSA”) issued by Stewart Title Insurance Company (STIC) in New York, and

C.  U.S. Government Lists (Patriot Act search) – lists published and maintained by the United States Treasury Department’s Office of Foreign Asset Control (OFAC) relating to Specially Designated Nationals (SDNs) and Foreign Sanctions Evaders (FSEs). This is frequently referred to as a “Patriot Act” search.

POTENTIAL MATCHES WITH THE SPECIAL ALERTS DATABASE ARE CLEARED DIFFERENTLY, DEPENDING UPON THE SOURCE OR NATURE OF THE POTENTIAL MATCH, AS DESCRIBED BELOW.

1. Use the Stewart Special Alerts search application.

The results produced by third party search applications (e.g., ResWare) are insufficient to determine how a potential match should be handled.

If you used a third party search application for your initial search, and if it produced a “Clear” result for all entries, you don’t need to search further or request clearance.

However, if you used a third party search application for your initial search, and if it produced a “Not Clear” result (e.g., a spreadsheet), you must re-run the search for that name using the Stewart Special Alerts Search application, available at https://specialalerts.stewart.com/Search before requesting clearance. This is the only approved search application. This application will help you to refine your results and determine the applicable procedure for clearance. Please read the Special Alert or Closing Alert produced by the Stewart Special Alerts Search application.

Please include with your request for clearance your search results from the Stewart Special Alerts Search application and the downloaded Special Alerts Bulletin showing the potential match.

2. The potential match may be a “false positive” result.

Please read the Special Alert produced by the Stewart Special Alerts search application. Please check for a potential “false positive match”. Sometimes the letters of the first name will appear in one portion of the Special Alert; sometimes the letters of the second name will appear in another portion of the Special Alert. This may trigger a potential “false positive” match, even if the names aren’t adjacent. This happens more frequently with common names or words, and in Special Alerts that contain many names. For example: The name “John Smith” is searched. The names “John Michael” and “Todd Smith” appear in a Special Alert. The search result indicates that the names “John” and “Smith” appear in the Special Alert. This produces a result, but it is a “false positive” result, and not a match.

If your initial search indicates a potential match, we recommend that you double-check the results by re-running the search using the “Refine your search” feature at the bottom of the search page. A user can refine the search by using the “Match whole words only” radio button in addition to the “Match all keywords” button. We recommend using both radio buttons. This may reduce or eliminate false positive match results.

Before sending a request for clearance, please read the results obtained from the approved search application. You may be able to determine that there is no match. If the results are extensive, it is also possible to search through the search results page and/or the Special Alert for the specific name by using “Ctrl Key + F Key” (and/or the “Find” feature in the browser or word processing application) in order to highlight and evaluate the potential matches. In the example above, if you search for the exact name of the potential match using the recommended radio buttons (“John Smith”), it will no longer appear as a “match” on the Special Alert results.

If the first name and the last name of the potential match are not the same as the first name and the last name on the Special Alert, you may be able to determine that there is no actual match with a Special Alert (i.e., it is a “false positive” result), and you don’t need to request or obtain clearance. As always, please feel free to request clearance if you have any concerns.

3. Read the Alert to determine how to clear the potential match.

If you believe that you may have a potential match with a name or address on a Special Alert or a Closing Alert (A or B above), please read the Alert before requesting clearance. This will help determine how the potential match will be cleared (i.e., whether to clear it through SpecialAlerts@stewart.com, or STCALegal@stewart.com, or NYLegal@stewart.com). The Special Alert or Closing Alert may be linked in your search, and they are always available on Virtual Underwriter at https://www.virtualunderwriter.com/en/special-alerts.html.

Please send the Request for Clearance – Preliminary Questionnaire to the contact shown in the Alert. Please note: If there is no link to a Special Alert or Closing Alert, you may have a potential match with a name on a government list (C above). This type of potential match cleared by the issuing office. Please see below.

4. Patriot Act Search. All “U.S. persons” (including individuals and entities) are prohibited from engaging in transactions (trade or financial transactions or other dealings) with persons or entities on the Specially Designated Nationals List (SDN List) or the Foreign Sanctions Evaders List (FSE List), published and maintained by the United States Treasury Department Office of Foreign Asset Control (OFAC).

Searching the OFAC database is often referred to as a “Patriot Act” search. As an accommodation to Issuing Offices, and to assist with “one-stop” searching, the Stewart Special Alerts Search application also searches names in OFAC’s SDN List and FSE List. Stewart Title makes no representation or warranty about the accuracy of this search, and the information obtained from OFAC is limited. Issuing Offices are permitted to use whatever source they deem appropriate to comply with the Patriot Act, including OFAC’s web-based search engine.

A potential match with a Special Alert is generally cleared by Stewart’s Legal Services. A potential match with a name on a governmental list (e.g., SDN List and/or FSE List) is cleared by the issuing office. If there is a potential match with a government list, it isn’t necessary request or obtain clearance from Stewart Legal Services or complete a Preliminary Questionnaire. It isn’t necessary to copy SpecialAlerts@stewart.com on your communications regarding clearance. If you believe that you may have a potential match with a name on a government list (C above), please read Clearing a Potential Match with a Name on a Government List (linked below) for additional guidance.

5. Closing Alerts Issued by Stewart Title Insurance Company (STIC). A potential match with a name or address on a New York Closing Alert (B above, beginning with “NYSA”) is cleared by Stewart Title Insurance Company Agency Legal Services in New York. If you believe that you may have a potential match with a New York Closing Alert only (B above), please send your Request for Clearance – Preliminary Questionnaire to Stewart Title Agency Legal Department at NYLegal@stewart.com or call 212-922-0050 and ask to speak with any Agency Legal Services Counsel regarding clearance of this Closing Alert.

6. Special Alerts Issued by Stewart Title Guaranty Company (STG). A potential match with a name or address on a Special Alert (A above, beginning with “SA”) is generally cleared by Stewart Legal Services, usually by someone in Houston, or as otherwise directed on the Special Alert. For example, some direct you to contact STCALegal@stewart.com. If you believe that you have a potential match with a Special Alert only (A above), please note the following:

A.  Pre-Clearance of a Lender, Mortgage Broker, Realtor, Property Insurance Company, or Title Company.

     A 1. There is a list of pre-cleared entities. If the potential match is a lender, mortgage broker, realtor, property insurance company, or title insurance company, please read Special Alerts – Clearing a Potential Match with a Lender, Mortgage Broker, Realtor, or Property Insurance Company (linked below) before requesting clearance or completing the Preliminary Questionnaire. The potential match may be pre-cleared. You don’t need to request or obtain clearance if the potential match appears on the pre-cleared entity list.

     A 2. If the lender, mortgage broker or realtor is not on the pre-cleared entity list, please complete the Preliminary Questionnaire and follow the instructions to request clearance.

     A 3. If the only role in the transaction of the property insurance company (e.g., Allstate, Farmers, Nationwide, Progressive, etc.) is to issue property insurance, i.e., a homeowner’s insurance policy, you don’t need to request or obtain clearance.

B.  Request for Clearance of a Special Alert. If you believe that you have a match with an Alert, complete the Special Alerts – Request for Clearance – Preliminary Questionnaire (linked below), unless otherwise indicated elsewhere in the guidelines. Please follow the directions for completion of the form and include the required information and documents. Please submit a separate Preliminary Questionnaire for each potential match.

C.  Documents to Submit. With the Preliminary Questionnaire, please submit the requested documents together with a copy of the Special Alert Bulletin or Closing Alert Bulletin showing the potential match and your search results from the Stewart Special Alerts application available on Virtual Underwriter at https://specialalerts.stewart.com/Search;

D.  Where to Email your Request for Clearance of a Special Alert. A person or office is shown on each Special Alert as the primary contact for clearance of a potential match with the Special Alert. For example, a Special Alert may ask you to contact a specific person, a state underwriter, or Stewart Title of California’s Legal Department for clearance. Please read the Special Alert.

Please send your request for clearance to the contact listed on the Special Alert. These are most likely:

SpecialAlerts@stewart.com OR STCALegal@stewart.com OR NYLegal@stewart.com.

If no person or office is named on a Special Alert, please email SpecialAlerts@stewart.com with the Preliminary Questionnaire and requested documentation.

Please include the Special Alert number or Closing Alert number and the name of the potential match in the Outlook Subject Line of your email.

E.  Pre-Clearance of the words “Vacant Land”. The words “Vacant Land” are sometimes used as an additional identifier of certain property on a Special Alert. However, the words “Vacant Land” alone are not a potential match with a Special Alert. Regarding a potential match solely of the words “Vacant Land” with a Special Alert, it is okay for a Stewart issuing office to proceed with the transaction, provided there is no other match of a name or address in the Special Alert or Closing Alert. If the only match is with the words “Vacant Land”, it isn’t necessary to request or obtain clearance from Legal Services.

F.  Other miscellaneous “hits”.  The words “cash” or “refi” are not a potential match with a Special Alert. If the only match is with any of those words, it isn’t necessary to request or obtain clearance from Legal Services.

G.  Please do not send any nonpublic personal information. Please do not send any nonpublic personal information (e.g. Social Security number, date of birth, driver license information, passport, etc.) unless you receive a request for specific information.

H.  Please include your contact information. We may need to contact the requester - you - with additional questions. Please include your name and email address on the Preliminary Questionnaire. Please send inquiries from a monitored email address, or provide a name and email address of a person who can answer questions and provide documents.

I.  Please send requests for clearance of a potential match as early as you can, with as much information as you have. We try to respond to inquiries as soon as possible, but some clearance requests may require investigation and additional inquiries.

J.  Please note that clearance may be unavailable, and it is prudent to be discreet in all communications with all parties.

7. Questions.  If you have questions, please contact SpecialAlerts@stewart.com.