Bulletin: NM000005

Dear Associates:

1998 Hearing

The Superintendent adopted changes to endorsements and rates pursuant to the 1998 Annual Hearing. The changes to endorsements were effective February 15, 1999. The changes to rates are effective May 1, 1999.

Arbitration Deletion: Multifamily Loans

The title insurer may now waive its right to demand arbitration under the Loan Policy (NM 2) by an endorsement to the Loan Policy or by a note in Schedule B. The title insurer may waive its right only if the land is composed of five or more family dwelling units. The title insurer may not waive its right to arbitrate on the Owner's Policy. [13 NMAC 14.2.11.4]

You may add the following to the NM Form 11 (Multipurpose Endorsement) or insert it in Schedule B of the Loan Policy, if the lender requests the change in writing.

"The Company hereby waives its right to demand arbitration pursuant to Section 13 of the Conditions and Stipulations."

The transaction code for reporting this endorsement or change is 66.

There is no charge for this endorsement.

NM 50 (ALTA 9) (revised 10/17/98) Restrictions, Encroachments, and Minerals

The Superintendent approved the substitution of the revised ALTA Endorsement 9. This revised endorsement does not make any substantive changes to the New Mexico Form 50. You may secure this revised form from Stewart Forms and Supply at 800-729-1901.

The premium for this endorsement remains 10% of the full basic premium rate. [13 NMAC 14.10.34]

Our guideline for issuance of this endorsement are in Exhibit 1.

Unpatented Mining Claims, etc. - Standard Exception 7

Standard Exception Number 7 is "Unpatented mining claims, reservations or exceptions in patents or in acts authorizing the issuance thereof, water rights, claims or title to water."

You may modify this exception by deleting "Unpatented mining claims, reservations or exceptions in patents or in acts authorizing the issuance thereof." Do not delete "Water rights, claims or title to water." Standard Exception 7 (mining claims and water) may be deleted, except for "water rights, claims or title to water" if: (1) you review the patent and except to matters in the patent; and , (2) the land is within the city limit, or is residential real property (one-to-four family), or is improved residential or commercial land of 5 acres or less. Otherwise, please call our underwriting personnel. [13 NMAC 14.6.23]

The charge to delete "Unpatented mining claims, reservations or exceptions in patents or in acts authorizing the issuance thereof" is $32. [13 NMAC 14.10.35]

Basic Rates

The basic rates are reduced by 1.7%, commencing May 1, 1999. You may secure Rate Cards from Stewart Supply and Information at the number above.

The rates for the endorsements are not changed.