Bulletin: UT2022005

Dear Associates:

The following revisions have been made to the Utah Rate Manual. These changes will become effective July 15, 2022. The new Manual will be available at www.stewart.com/Utah. Following is a summary of the changes.

Grammar

There have been various grammatical and syntax changes throughout the Manual that are not substantive. It should make for a more pleasant experience when reading the Manual.

Section A: Definitions

Land Banker: Defines a Land Banker as “a person or entity which aggregates land for future development or sale to hold and subdivide the land with the intent to later convey the subdivided lots or Land to a developer or home builder. Such conveyance may be in a single transaction or in multiple transactions.

A Land Banker rate has been added to the manual.

Residential: Defines residential Land as “Land developed for use or being used as a one to four family dwelling.”

Commercial: Defines commercial Land as “a structure or Land developed for any use other than Residential”.

Section B.1: Schedule of Charges for Policies

Adjustments to the Basic Schedule of Charges from a per thousand-dollar incremental charge to a per ten-thousand-dollar incremental charge. The incremental change incorporates a change to Section B, Item 5.A, wherein the standard coverage is no longer 90% of the Basic Schedule of Charges but will now be 100% of the Basic Schedule of Charges.

Note: This change required modifications to percentage charges throughout the manual, i.e., Refi was 60% of the Basic Schedule of Charges and is now 66% of the Basic Schedule of Charges.

Adjustment to the minimum charge from $220 to $230.

Section B.2.B.2(a): Construction Loan

Series ALTA 32: Mechanic's lien exception may be deleted if one of the ALTA 32 Series endorsements are issued. Otherwise, underwriter approval is required unless a Bulletin provides otherwise.

Section B.4.B: Additional Chains of Title

Adjustment to the charge from $125 to $150 and simplification as to when additional chain of title charges apply.

Section B.5.A: Standard Coverage Owner’s Policy

The standard coverage is no longer 90% of the Basic Schedule of Charges, but 100% of the Basic Schedule of Charges based on the per ten thousand incremental changes to the Basic Schedule of Charges. (See Section B.1).

Section B.5.C: Owners Reissue

Added an owner's reissue rate. The rate is applicable up to 2 years at 75% of Basic Schedule of Charges and 80% subsequent to 2 years up to 5 years and applies only to single family, one-to-four residential property.

Section B.6.A and B.6.B: Loan Policies

Standard Coverage Loan Policy is changed from 50% to 55% of the Basic Schedule of Charges and Extended Loan Policy is changed from 60% to 66% of the Basic Schedule of Charges.

Section B.6.C: Junior Loan Policies

Slight adjustment to charges and the insured amount may not exceed $300,000.

Section B.6.C: Expanded Coverage Polices

The charge for the various forms of the Expanded Coverage Loan Policies has been adjusted from 60% to 70% of the Basic Schedule of Charges.
Section B.6.E: Mortgage Refinance.

The charge for a standard coverage loan policy in connection with a refinance is changed from 45% to 50% of the Basic Schedule of Charges. The charge for an extended coverage loan policy in connection with a refinance is changed from 55% to 60% of the Basic Schedule of Charges. The charge for an expanded coverage loan policy in connection with a refinance is 65% of the Basich Schedule of charges.

Section B.10: Construction and Multiple Tract Charge

The charge for an extended loan policy issued for a construction loan is changed from 60% to 66% of the Basic Schedule of Charges. The required number of lots or units in the same development is changed from three (3) to two (2).

Section B.11: Land Bank Charge

A new reduced rate is available when the seller is a Land Banker, and the buyer is a developer or home builder that contracted with the Land Banker and the new owner’s policy is issued within two (2) years of an owner’s policy issued to the Land Banker.

Section B.12: Standard Exceptions

Item 5: Note added regarding the water exception to be on commitments similar to the minerals exception #7, unless underwriter approval to delete is obtained.

Item 6: Adding the word ‘equipment’ to the standard mechanic’s lien exception.

Section C: Endorsements

Added the following endorsements:

• ALTA 3.3 (Zoning-Completed Improvement - Non-Conforming Use)
• ALTA 3.4 (Zoning-Non-Zoning Classification)
• ALTA 6.1 (Variable Rate Mortgage Regulations)
• ALTA 18.3 (Single Tax parcel and ID)
• ALTA 23.1 (Co-Insurance - Multiple Parcels)
• ALTA 34.1 (Identified Exception and Identified Risk Coverage)
• ALTA 47 Series (Operative Law)
• STG Amendment of Cover Risk 10 (2021 Loan Policy)
• STG Arbitration Endorsement
• STG Deletion of PACA-PSA Exclusion
• STG Homeowner’s Endorsement (Homeowner’s Gold Endorsement 2021 Form)
• STG Post Policy Forgery Endorsement

Adjusted charges to some CLTA endorsements to match ALTA endorsements charges for same coverages.

Adjusted some ALTA Endorsement Charges. See the Endorsement Chart for current charges.

Agents, please contact PropertyInfo Customer Care or your title production software vendor to get the new forms implemented in your systems.

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.