Bulletin: CA2020003

Dear Associates:

The following is an overview of the proposed STGC Rate Manual changes. However, to best understand the changes and which apply to you, the Manual itself should be read thoroughly and carefully in its entirety.

1. Section 1.12 Disaster - this discount provision is being updated to include the availability of the discount if the individuals elect to purchase a replacement property following a disaster rather than remodeling or rebuilding the damaged or destroyed structure.
2. Section 1.26 Special Discounts for Residential - this discount provision is being updated to include first responders and to afford buyers a discount on the lender’s premium in seller-paid counties.
3. Section 2.10 U.S. ALTA Policy - this section is being added to include pricing for the issuance of U.S. ALTA policies.
4. Section 2.13 REO Properties - Owner’s Policy following a Foreclosure, Trustee’s Sale or Deed in Lieu - this section is being redrafted to clarify which rate applies to which policy and includes a 10% increase in the charge commensurate with the increased liability of REO transactions.
5. Section 2.17 Binders - this section is being updated to clarify how to properly calculate the charge for a binder, i.e., the process will “return” to the practice of charging a “binder fee” in addition to the calculated policy amount and the charge for the policy. In addition, there is a new section permitting a binder for the owner’s insurance on an all-cash deal which permits the Binder Holder to still get the concurrent rate for a loan taken out within 6 months of the purchase.
6. Section 3.15 ALTA Residential Limited Coverage Junior Loan Policy - this section is being updated to set limitations and costs related to these limited, inexpensive policies and to explain any charges for updates, when available.
7. Section 3.19 Centralized Processing Loan and Refinance Rate (CPLR) For Issuance of an ALTA Short Form Residential Loan Policy - this section is being overhauled and expanded from a Company home office product to have available a significantly discounted rate for qualified residential refinance or loan transactions processed through a centralized processing unit.
8. Section 7 Commitment for Title Insurance - this section is being updated to clarify how to properly calculate the charge for a commitment, i.e., the process will “return” to the practice of charging a “commitment fee” in addition to the calculated policy amount and the charge for the policy. In addition, there is some clarity on expired commitments. Note: Please take notice of the Section 7 Commitments that were added to the rate manual in January 2019. Please make sure your teams are aware of and charge consistent with the rate manual when issuing commitments.
9. Section 9.15 Condition of Title Guarantee (CTG) - this section is being updated to increase the charges for the product as well as set alternate charges and liability limitation for a CTG based upon known or obvious extra hazardous risks.
10. Section 10 Endorsements - some new ALTA and STG endorsements were added, a few charges have been increased while others decreased, and some endorsements were updated to show the actual charge rather than a reference to a section of the rate manual. In addition, the footnote has been updated to provide clarification.
11. Section 11.3 Basic Rate - the charges for the non-commercial rates have been increased to be more consistent with the residential charges in Section 11.2 that were increased early in 2019. These changes do not affect non-residential transaction title rates priced pursuant to Major Transactions section 2.20.

If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter. Stewart Title Guaranty Company is filing an amended Schedule of Charges and Forms for Title Insurance in the State of California ("Manual"). This Manual is pending California Department of Insurance approval, anticipated to become effective on September 21, 2020; please post as required. Attached are the links for your convenience. (Click here to view a copy of the “Redline” and the “Accepted” versions).

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