Bulletin: VA2018004

Dear Associates:

If a lender requests in writing that you issue an ALTA Expanded Coverage Residential Loan Policy [an "Enhanced Loan Policy"] on your transaction, the calculation process when an Owner’s Policy is also to be issued simultaneously is as follows:

• With a standard, basic Owner’s Policy:

1. Calculate the full amount of the Standard Owner’s Policy.
2. Add the $200.00 simultaneous issue fee.
3. Add the difference between the Enhanced Loan Policy premium and the Standard Loan Policy premium.

Example: Sales price of $450,000; Loan amount of $360,000

• Standard Owner’s Policy premium on $450,000 sales price per STGC published rates= $2,155
• Simultaneous issue fee: $200
• Difference between Enhanced Loan Policy premium and Standard Loan Policy premium on a $360,000 loan per STG published rates= $204.40
• Premium rate to be charged= $2,155 + $200+ $204.40= $2,559.40

Notes: 1) The ICL fee is not part of this calculation; 2) As a reminder: an Enhanced Loan Policy can only be issued when requested in writing by the new lender; 3) When an ALTA Homeowner’s Policy of Title Insurance [an “Enhanced Owner’s Policy”] is issued at the same title as an Enhanced Loan Policy, normally the sales price will be greater or the same as the loan amount and you only need to add the simultaneous issue fee. In the uncommon case where the loan amount exceeds the sale price, add in the excess enhanced loan premium per $1,000 as follows:

$1.00 up to $250,000

$0.95 from $250,000 up to $500,000

$0.85 from $500,000 up to $1,000,000

$.60 from $1,000,000 up to $2,000,000

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

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