Bulletin: TX000063

Dear Associates:

As you know, the Texas Department of Insurance has approved the use of Short Form Mortgagee policies in Texas. Accordingly, we have changed our policies so that if you wish to laser print policy jackets you will simply notify your District Manager and our Policy Department will provide you with a block of numbers to add to the jackets you produce. If you laser print schedules only (and not policy jackets), you do not need further approval. If you use AIM for Windows or VAX AIM for policy production, you also do not need further approval.

We can also authorize you to produce and deliver Mortgagee policies electronically. Please notify your District Manager if you wish to do so. Again, our policy department will provide you with the appropriate block of numbers. If you wish to deliver residential owner policies, you must still comply with revised rule P-17. If the form is electronically produced, the information set forth in the stored form must be as originally generated in its final form and must remain unaltered and accessible. You do not need to retain a hard copy of the form as long as you retain an electronic copy.

In January 2002 Fannie Mae issued Announcement 02-01 stating that it no longer requires paper copies of documents, including insurance policies. In a letter to Stewart Title, Fannie Mae confirmed that this announcement also applied to title insurance policies. Fannie Mae requires that the title insurance policy must not be subject to unauthorized alteration. Please see National Legal Department Bulletin NL000128 Fannie Mae and Electronic Production of Policies, dated August 21, 2002 and attached to this Supplement. P-17 complies with the regulation.

Electronically produced forms do not have to have a printed official corporate seal or president's signature. You still must countersign them for them to become effective. Electronically delivered forms do not require a "hard" countersignature.