Bulletin: OH2013001

Dear Associates:

The Ohio Title Insurance Rating Bureau has approved the following ALTA forms and rates for use in Ohio, effective May 1, 2013:

ER-30.1 COMMERCIAL PARTICIPATION INTEREST (ALTA FORM 30.1-06)

This endorsement, subject to the exclusions contained in the endorsement and the Exclusions, Exceptions and Conditions contained in the Policy, insures against loss or damage sustained by the Insured by reason of: (a) the invalidity or unenforceability of the lien of the Insured Mortgage resulting from the provisions in the Insured Mortgage or the Loan Documents which provide for Participation Interest, and (b) lack of priority of the lien of the Insured Mortgage at Date of Policy as security for the unpaid principal balance of the loan and the interest on the loan, including the Participation Interest, if any, which lack of priority is caused by the provisions in the Loan Documents for payment or allocation to the Insured of any Participation Interest.

The rate for this endorsement is ten percent (10%) of the Original Rate for the Loan Policy as set forth in Rule PR-8 hereof, for the policy to which it is attached and is in addition to the policy premium. The minimum rate for this endorsement is $250.00.

ER-32.2 CONSTRUCTION LOAN - LOSS OF PRIORITY - INSURED’S DIRECT PAYMENT (ALTA FORM 32.2-06)

This endorsement may only be issued with a Loan Policy insuring a mortgage the proceeds of which are intended to finance the construction of improvements on the Land. The endorsement provides coverage, on an incremental basis, to a lender for loss the lender might sustain, subject to the terms, conditions and exclusions stated therein, due to the invalidity or unenforceability of the lien of the Insured Mortgage; the lack of priority of the lien of the Insured Mortgage, as security for each Construction Loan Advance made on or before the Date of Coverage, over any lien or encumbrance on the Title recorded in the Public Records and not shown in Schedule B; and the lack of priority of the lien of the Insured Mortgage, as security for each Construction Loan Advance over any Mechanics’ Lien, if notice of the Mechanics’ Lien is not filed or recorded in the Public Records, but only to the extent that direct payment to the Mechanic’s Lien claimant has been made by the Insured or on the Insured’s behalf on or before the Date of Coverage.

The rate for this endorsement is twenty percent (20%) of the Original Rate for the Loan Policy as set forth in Rule PR-8 hereof, for the policy to which it is attached and is in addition to the policy premium. The minimum rate for this endorsement is $250.00.

PR-8.1 TITLE INSURANCE RATE FOR RESIDENTIAL LIMITED COVERAGE JUNIOR LOAN POLICY, CONVENTIONAL OR SHORT FORM

The Residential Limited Coverage Junior Loan Policy is intended to provide home equity and other second mortgage residential lenders with limited title insurance protection needed on such loans. This policy can only be issued in connection with second mortgages on one-to-four family residential property or an individual condominium unit. The Original Rate for this policy is $1.75 per thousand, or any fraction thereof, of the policy amount with a minimum premium of $75.00. This rate applies for either the conventional or short form Junior Loan Policy.

Two endorsements specific to this policy are available upon request as follows:

Endorsement JR-1, issued without additional premium, insures against loss or damage, as provided in the endorsement, arising out of the gap period and the period between the recording of the mortgage and date of endorsement.

Endorsement JR-2, issued for an additional premium of $25.00, provides coverage, as stated in the endorsement, for the priority of future advances of loan proceeds on home equity type loans.

ER-112.1 DELETION OF GENERAL EXCEPTION FOR MECHANICS’ LIENS - PRIORITY - OWNER’S POLICY OR HOMEOWNER’S POLICY

When mechanics’ lien coverage is provided in an Owner’s Policy or a Homeowner’s Policy, whether within the express insuring provisions of the Policy issued or by the absence or deletion of the general exception for mechanics’ liens:

a. Where the risk of loss due to mechanics’ lien claims cannot be determined, the premium for such coverage shall be ten percent (10%) of the Original Rate for such Owner’s policy as set forth in Rule PR-1 or Rule PR-1.1 hereof, and is in addition to the Policy premium. The minimum premium in such circumstance shall be $250.00.

b. When there is a risk of loss due to mechanics’ lien claims, as determined by the underwriter, the premium shall be forty percent (40%) of the Original Rate for such Owner’s policy as set forth in Rule PR-1 or Rule PR-1.1 hereof, and is in addition to the Policy premium. The minimum premium shall be $500.00.

CP-1 CLOSING PROTECTION COVERAGE TRANSACTION SPECIFIC

This coverage, which is limited to a specific transaction, provides the covered party with certain protection as set forth in Form CP-24 against fraud, misapplication of funds or failure to comply with written closing instructions by the Licensed Agent (an agent licensed and authorized to issue title insurance in the State of Ohio for the Company) subject to the provisions contained therein. The Rate for the issuance of this coverage shall be forty dollars ($40.00) for a lender, its successors and assigns, as their interest may appear, fifty-five dollars ($55.00) for seller(s), twenty dollars ($20.00) for buyer(s)/borrower(s) and twenty dollars ($20.00) for each additional applicant for title insurance. Minimum Premium $40.00 and this Rate is remitted in its entirety to the Insurer (which for purposes of this section does not include the Issuing or the Licensed Agent). The premium shall be earned when funds or documents are deposited with the Licensed Agent.

NOTE: Pay particular attention to ER-112.1. This provision mandates an additional 10% premium when deleting the standard mechanic lien exception on owner policies where there has been no pre-start and you are relying on the standard owner affidavit that no work has been performed or material furnished to the premises. Where there has been a pre-start, the rate addition will increase to 40%. Application of these rates is subject to underwriter approval.

NOTE: Also make sure all closing staff are aware of the increase of the closing protection (CPL) fees as set forth in CP-1, above.

Attached is link to the Ohio Rate Manual and all endorsements approved for use in Ohio.

Agents using AIM For Windows or AIM+ should contact PropertyInfo Customer Care to get the new rate(s) changes implemented in their AFW or AFW+ system.

If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.

For on-line viewing of this and other bulletins, please log onto www.vuwriter.com.