Bulletin: AZ2014002

Dear Associates:

We have recently filed and the filing was accepted by the Arizona Department of Insurance for certain rate changes, which will become effective September 1, 2014. The revision would pertain to the charges for the Timeshare/Interval Interest (No. 122), Secondary Market Short Form Residential Loan Policy (No. 218), and Insured Closing Letter (Closing Protection Letter) (No. 622). The revision would be found on pages 18, 29, and 39A of the manual respectively. Below are details on the revisions.

The Timeshare rate is being revised for use when a streamlined processing unit is utilized and thereby affording savings to be passed along to the consumer. 

The charges on timeshares utilizing the central processing format are as follows:

122       Timeshare/Interval Interest (Standard Coverage)

            Summary Account:

            For Central Processing/Vendor Contracted accounts, the following will apply.

            $150 up to $7,000

            $250 from $7,001 to $60,000.

The SMSF Policy would be issued only for one-to-four family improved residential properties in established subdivisions for mortgages issued to institutional lienholders. The policy has been specifically designed for electronically originated loans and the pricing and cost structure has been designed for a centrally processed, electronically ordered title insurance product.

The charges for the Secondary Market Short Form Residential Loan Policy are based on the loan transaction with the charges for each range set out below:

Range of Liability:                                                                                             Fee:

                                    Up to $100,000 of liability written                                   $350

                                    Over $100,000 and up to $300,000                                 $350

                                    Over $300,000 and up to $525,000                                 $450

                                    Over $525,000 and up to $750,000                                 $550

                                    Over $750,000 and up to $1,100,000                               $650

                                    Over $1,100,000 and up to $1,500,000                            $750

The charge for the Insured Closing Letter is one recently enacted by the Arizona Legislature wherein we are now required to charge for the issuance of these letters. The letters are ones issued upon request to parties such as a buyer, seller, or lender. 

Those proposed charges are as follows:

622                                           Insured Closing Letter (Closing Protection Letter)

                                                Charge: $20 per letter issued with a maximum of $40 per transaction.

The rate changes will be effective by September 1, 2014.

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

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

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