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Bulletin: LA2007001

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Bulletin: LA2007001

Bulletin Document
V 1
Date: August 23, 2007
To: All Louisiana Agents and Issuing Offices
RE: New ALTA 2006 Forms/New Rates
Dear Associates,  The Louisiana Department of Insurance (DOI) has approved the New ALTA 2006 Forms for use in Louisiana.  Because of the expansion in coverage afforded under the new forms, new rates were adopted for all policies.  These rates and forms go into effect on September 1, 2007 and replace the current rates and forms. Please see Bulletin SLS00307 for more information regarding the differences in the 1992 and 2006 forms.  The most significant change that affects you, as an issuing agent, are new definitions and terms in the 2006 Policies.  Because of this, the new 2006 Endorsements are not to be issued on old 1992 forms.  After September 1st when requested to issue an endorsement on an older policy, you are to issue the old endorsement form.  We do not anticipate this will be much of an issue, but knowing this will help you understand the new numbering system.  The ALTA Endorsements are now numbered with an -06 number; e.g., ALTA 1-06 Street Assessments.  You are to issue the 2006 Endorsements on all policies issued after September 1st, including the ALTA Homeowners (2003), ALTA Expanded Coverage Loan (2003), etc. New Policy Forms The following are the new policy forms effective September 1, 2007: ALTA Commitment Form (06-17-06)ALTA Owner’s Policy (06-17-06) O-9301ALTA Loan Policy (06-17-06) M-9302ALTA Short Form Residential Loan Policy (06-17-06) M-9312


New Owner’s Rates 

The rate for an original owner’s policy shall be as follows:

 
LiabilityPremium
FromTo(per $1,000 of liability)
Up to and including $12,000$100

$12,001

$50,000 add

$5.40

$50,001

$100,000 add

$4.80

$100,001

$500,000 add

$4.50

$500,001

$1,000,000 add

$3.60

$1,000,001

$2,000,000 add

$3.00

$2,000,001

$10,000,000 add

$2.70

$10,000,001

$15,000,000 add

$2.40

$15,000,001

$25,000,000 add

$2.10

$25,000,001

$35,000,000 add

$1.80

$35,000,001

And above

$1.50

 New Lender’s Rates 

The rates for original mortgage title insurance shall be as follows:

 
LiabilityPremium
FromTo(per $1,000 of liability)

Up to and including $12,000

$100

$12,001

$50,000

$4.20

$50,001

$100,000 add

$3.60

$100,001

$500,000 add

$3.30

$500,001

$1,000,000 add

$2.70

$1,000,001

$2,000,000 add

$2.40

$2,000,001

$15,000,000 add

$2.10

$15,000,001

$25,000,000 add

$1.80

$25,000,001

$35,000,000 add

$1.50

$35,000,001

And above

$1.20

 New Endorsement Forms and Rates: 
ALTA Endorsement FormEndorsement NumberRate
1-06: Street AssessmentsE-9313Ten percent (10%) of the Original Rate with a minimum premium of $30.00 and a maximum premium of $200.00
2-06: Truth in LendingE-9314Ten percent (10%) of the Original Rate, with a minimum premium of $25.00 and a maximum premium of $250.00.
3-06: Zoning (Residential)E-9315Ten Percent (10%) of Original Rate.  If Zoning Form 3 coverage is provided simultaneously with Owner’s and Loan policies covering the same land, the rate for the Owner’s coverage shall be the Original Endorsement Rate for the policy issued and the rate for the Loan coverage shall be 50% of the Original Endorsement Rate for the policy issued
3C-06: Zoning (Commercial)E-9315CFifteen Percent (15%) of original rate.  If Zoning Form 3C coverage is provided simultaneously with Owner’s and Loan policies covering the same land, the rate for the Owner’s coverage shall be the Original Endorsement Rate for the policy issued and the rate for the Loan coverage shall be 50% of the Original Endorsement Rate for the policy issued
3.1-06: Zoning, Completed Structure (Residential)E-9316Ten Percent (10%) of Original Rate.  If Zoning Form 3.1 coverage is provided simultaneously with Owner’s and Loan policies covering the same land, the rate for the Owner’s coverage shall be the Original Endorsement Rate for the policy issued and the rate for the Loan coverage shall be 50% of the Original Endorsement Rate for the policy issued
3.1C-06: Zoning, Completed Structure (Commercial)E-9316CFifteen Percent (15%) of original rate.  If Zoning Form 3.1C coverage is provided simultaneously with Owner’s and Loan policies covering the same land, the rate for the Owner’s coverage shall be the Original Endorsement Rate for the policy issued and the rate for the Loan coverage shall be 50% of the Original Endorsement Rate for the policy issued.
4-06: CondominiumE-9317$50
4.1-06: CondominiumE-9318$50
5-06: Planned Unit Development (PUD)E-9319$50
5.1-06: Planned Unit Development (PUD)E-9320$50
6-06: Variable Rate MortgageE-9321$50

6.2-06: Variable Rate Mortgage, Negative Amortization

 		E-9322$50

7-06: Manufactured Housing Unit

E-9323$50

7.1-06: Manufactured Housing Unit –Conversion, Loan

E-9325$50

7.2-06: Manufactured Housing Unit –Conversion, Owners

E-9327$50

8.1-06: Environmental Protection Lien

E-3103$50

9-06: Restrictions, Encroachments, Minerals

E-9330Ten percent (10%) of the Original Rate, with a minimum rate of $150

9.1-06: Restrictions, Encroachments, and Minerals, Owner’s Policy – Unimproved Land

E-9332Twenty percent (20%) of the Original Rate, with a minimum rate of $150

9.2-06: Restrictions, Encroachment, and Minerals – Owner’s Policy - Improved Land

E-9334Twenty percent (20%) of the Original Rate, with a minimum rate of $150

9.3-06: Restrictions, Encroachment, and Minerals – Loan Policy

E-9336Ten percent (10%) of the Original Rate, with a minimum rate of $150

9.4-06: Restrictions, Encroachment, and Minerals – Owner’s Policy - Unimproved Land

E-9338Twenty percent (20%) of the Original Rate, with a minimum rate of $150

9.5-06: Restrictions, Encroachment, and Mineral – Owner’s Policy - Improved Land

E-9340Twenty percent (20%) of the Original Rate, with a minimum rate of $150

10-06: Assignment

E-9341$50

10.1-06: Assignment and Date Down

E-9342$50

11-06: Modification

E-9343$0.50 per thousand of the unpaid balance of the mortgage, with a minimum premium of $125

12-06: Aggregation

E-9344$0.15 per thousand of the amount of the policy endorsed, with a minimum premium of $75

13-06: Leasehold Owners

E-9345No charge for the endorsement, because we will charge the original issue rate for the owners or mortgagee policy to which it attaches.

13.1-06: Leasehold Loan

E-9346No charge for the endorsement, because we will charge the original issue rate for the owners or mortgagee policy to which it attaches.

14-06: Future Advance- Priority

E-9347 w/ MMLE-9348 w/oMMLTwenty-five percent (25%) of the Original Rate for loan policies, for the policy to which it is attached and is in addition to the applicable policy rate with a minimum of $250.In the event, however, that the policy to which this endorsement is attached insures a mortgage which secures an indebtedness which has both a revolving, future advance portion and a fixed, non-revolving portion, the rate charged for this endorsement shall apply only to the revolving, future advance portion of the indebtedness. In the event that the proceeds of the mortgage insured by the policy to which this endorsement is attached are intended to finance the construction of improvements on the Land described in the policy, an additional rate 15% of the Original Rate shall be added to the rate set forth above in this rule

14.1-06: Future Advance-Knowledge

E-9349 w/MMLE-9350 w/oMMLTwenty percent (20%) of the Original Rate for loan policies, for the policy to which it is attached and is in addition to the applicable policy rate with a minimum of $250In the event, however, that the policy to which this endorsement is attached insures a mortgage which secures an indebtedness which has both a revolving, future advance portion and a fixed, non-revolving portion, the rate charged for this endorsement shall apply only to the revolving, future advance portion of the indebtedness. In the event that the proceeds of the mortgage insured by the policy to which this endorsement is attached are intended to finance the construction of improvements on the Land described in the policy, an additional rate of 15% of the Original Rate shall be added to the rate set forth in this rule

14.2-06: Future Advance-Letter of Credit

E-9351 w/MMLE-9352 w/oMMLTwenty percent (20%) of the Original Rate for loan policies, for the policy to which it is attached and is in addition to the applicable policy rate with a minimum of $250.In the event, however, that the policy to which this endorsement is attached insures a mortgage which secures an indebtedness which has both a revolving, future advance portion and a fixed, non-revolving portion, the rate charged for this endorsement shall apply only to the revolving, future advance portion of the indebtedness. In the event that the proceeds of the mortgage insured by the policy to which this endorsement is attached are intended to finance the construction of improvements on the Land described in the policy, an additional rate of 10% of the Original Rate shall be added to the rate set forth in this rule

14.3-06: Future Advance-Reverse Mortgage

E-9355 w/MMLE-9356 w/oMMLTwenty percent (20%) of the Original Rate of the Loan Policy and is in addition to the policy premium. In the event, however, that the policy to which this endorsement is attached insures a mortgage which secures an indebtedness which has both a revolving, future advance portion and a fixed, non-revolving portion, the rate charged for this endorsement shall apply only to the revolving future advance portion of the indebtedness. The minimum premium for this endorsement is $250

15-06: Non-imputation-Full Equity Transfer

E-9357Fifteen percent (15%) of the Original Rate for Owners Policies, for the policy to which it is attached and is an addition to the policy rate. Minimum rate is $150

15.1-06: Non-imputation-Additional Insured

E-9358Fifteen percent (15%) of the Original Rate for Owners Policies, for the policy to which it is attached and is an addition to the policy rate. Minimum rate is $150

15.2-06: Non-imputation -Partial Equity Transfer

E-9359Fifteen percent (15%) of the Original Rate for Owners Policies, for the policy to which it is attached and is an addition to the policy rate. Minimum rate is $150

16-06: Mezzanine Financing

E-9360Fifteen percent (15%) of the Original Rate for Owners Policies, for the policy to which it is attached and is an addition to the policy rate. Minimum rate is $250

17-06: Access and Entry

E-9361$150

17.1-06: Indirect Access and Entry

E-9362$250

18-06: Single Tax Parcel

E-9363$75

18.1-06: Multiple Tax Parcel

E-9364$75

19-06: Contiguity-Multiple Parcel

E-9365$100

19.1-06: Contiguity-Single Parcel

E-9366$135

20-06: First Loss-Multiple Parcel

E-9367Fifteen Percent (15%) of the Original Rate with a minimum premium of $250

21-06: Creditors’ Rights

E-9368Ten percent (10%) of the Original Rate with a minimum premium of $250

22-06: Location

E-9370$150

22.1-06: Location and Map

E-9372$250

Region B Support is preparing the changes to the various AIM Systems and will be contacting you in the next couple of weeks.  Please contact Rose Anne Seemann at 1-800-209-4675 x2 for your new forms. Thank you for your business and please call John Hall at 1-800-209-4675 x4 or Wayne McDonald at x3 with any questions.

THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER  AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.

References