Bulletin: NM000009

The Superintendent of Insurance signed an order adopting new forms, rules and rates effective July 1, 2003. You may secure copies of the new forms from Stewart Forms and Information (via telephone at 800.729.1901 or via e-mail at stgforms@stewart.com). The following are the matters covered in the order.

NEW ENDORSEMENTS

The Superintendent adopted the following endorsements, effective July 1, 2003. These endorsements are used primarily in large transactions, usually multi-state or multi-site deals.

First Loss Endorsement (NM 58) to Loan Policy (Exhibit 1)

This endorsement provides for payment for a significant loss without requiring foreclosure of other collateral or acceleration of debt. New Mexico Regulation 13.14.8.21 provides that this endorsement may be issued on a Loan Policy if (1) other property (real or personal) not described in the policy is encumbered to secure the mortgage debt, and (2) the land is not residential property containing four or fewer dwelling units.  New Mexico Regulation 13.14.10.41 provides that the charge for this endorsement is $25. Please call our underwriting personnel if you are asked to issue this endorsement.

Last Dollar Endorsement (NM 59) to Loan Policy (Exhibit 2)

This endorsement overrides Section 9(b) of the Loan Policy, which provides that payment of principal reduces the policy coverage dollar for dollar, even if the debt exceeds the Amount of Insurance.  New Mexico Regulation 13.14.8.22 provides that this endorsement may be issued on a Loan Policy if (1) other property (real or personal) not described in the policy is encumbered to secure the mortgage debt, and (2) the land is not residential property containing four or fewer dwelling units.  New Mexico Regulation 13.14.10.42 provides that the charge for this endorsement is $25. Please call our underwriting personnel if you are asked to issue this endorsement.   

Loan Policy Aggregation Endorsement (NM 60) to Loan Policy (Exhibit 3)

This endorsement also is called the Tie-in, Cluster, or Spreader Endorsement. This endorsement aggregates the liability of multiple Loan Policies (whether issued in New Mexico or elsewhere) covering multiple tracts.  New Mexico Regulation 13.14.8.23 provides that this endorsement may be issued on a Loan Policy if (1) multiple policies are issued simultaneously covering separate mortgages (in New Mexico or other states) to secure the mortgage debt, and (2) the land is not residential property containing four or fewer dwelling units.  New Mexico Regulation 13.14.10.43 provides that the charge for this endorsement is $25.  Please call our underwriting personnel if you are asked to issue this endorsement.

NEW BASIC RATES

The Superintendent has ordered variable rates decreased by 1% commencing July 1, 2003. Flat rates, such as endorsement charges, remain unchanged.  Our New Mexico offices will furnish new Rate Cards to you.

UNDERWRITER/AGENT SPLIT

The current allowable range of agent/underwriter premium division remains unchanged.