Bulletin: LA000003

Dear Associates:

You have received a previous Bulletin dated August 1, 1992, concerning the Master Residential Loan Policy and Short Form Residential Loan Policy.

That Bulletin states that issuance of the Master Policy or the Short Form Policy is limited to one-to-four residences in well established subdivisions that do not have a history of survey or encroachment problems.

If you receive a request to issue the Master Policy Certificate or Short Form Loan Policy based upon a metes and bounds description, verify:

1.The land has an improved one-to-four family residence.

2.The land does not exceed 5 acres.

3.You review a survey not more than 10 years old.

4.If the survey discloses any serious problems, make a suitable exception on the Addendum.

5.Examination of title must not reflect that improvements have been added since the date of said survey (e.g., by lien affidavits, mechanic's lien contract).

6.An Affidavit must be executed by the mortgagors. Please see referenced forms at the end of this bulletin.

If you are requested to issue without a survey on a metes and bounds description, please call our Agency Representative, District Manager, or underwriting personnel.