Bulletin: CA2023003

Dear Associates:

Stewart Title Guaranty Company (“STG” or “Company”) is filing a new amended Schedule of Charges and Forms for Title Insurance in the State of California ("STGC Manual"). This STGC Manual is pending California Department of Insurance approval, anticipated to become effective on April 3, 2023; please post as required. Attached are the links for your convenience. (Click here to view a copy of the “Redline” and the “Accepted” versions).

The changes include some corrections of typographical errors, some clarifications, the update of the table of contents, and some other updates for consistency. In addition, there were significant conforming changes and updates to the STGC Manual and its Section 10 – Endorsements to reflect the new, archived, and updated CLTA endorsements and the new 2022 CLTA standard coverage policies already filed by the California Land Title Association and approved by the California Department of Insurance.

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

1. Section 1.11 – Insured Owner – this section is being deleted as it was unnecessary and, contrary to as stated, there were no references elsewhere in the STGC Manual.
2. Section 1.27 – Joint Protection Policy – this section is being significantly revised since the issuance and filing of the new 2022 CLTA Owner’s Policy and the 2022 CLTA Loan Policy. The intention of these new policies is to replace the 1990 CLTA Standard Coverage policy. Charges for the issuance of CLTA standard coverage has a slight increase as similarly set out in the corresponding Section 3.1 provisions.
3. Section 2.13 - Owner’s Policy Following a Foreclosure, Trustee’s Sale, or Deed in Lieu (Real Estate Owned – REO) – this section is deleted as of the effective date therein.
4. Section 2.16 – Removing Tideland, Swamp, and Overflow Exceptions – this section is deleted as of the effective date therein.
5. Section 2.17 – Binders – this section is being amended to clarify that issuing a binder on a binder is not available.
6. Section 2.19 – Wetlands – this section is being renamed from the former Submerged Lands or Tidelands to more accurately reflect its intended application.
7. Section 2.20 – Major Transactions – this section is being amended to add separate pricing for transactions in the zero to five million range within the various subsections.
8. Section 3.2 – Construction Loan Lender’s Package (LP) – this section is being renamed from the former Expanded Lender’s Insurance Coverage to more accurately reflect its intended application. Further, this section is being amended to clarify and simplify this section.
9. Section 3.6 – Refinance Rate – this section is being updated to clarify and simplify the charges under this section.
10. Section 3.8 – Assignments of Deeds of Trust – this section is being updated to simplify this section and clarify the intent and applicability of this section. In addition, the minimum charges under this section are being slightly increased.
11. Section 3.13 – Expanding Standard Lender’s Insurance Coverage – this section is being renamed to include the word Standard to more accurately reflect its intended application. Further, this section is being updated to clarify the intent and applicability of this section and to slightly increase the charges commensurate with the risk reflected in this product.
12. Section 3.14 – NEW SECTION – ALTA Expanded Coverage Residential Loan Policy – this section has been added to include the charges for the issuance of the ALTA Expanded Coverage Residential Loan Policy.
13. Section 3.15 – ALTA Residential Limited Coverage Junior Loan Policy – the charges under this section are being slightly increased.
14. Section 3.19 – Centralized Processing Loan and Refinance Rate for Issuance of an ALTA Short Form Residential Loan Policy– the charges for two of the three highest liability tiers have been increased as set forth in this section.
15. Section 3.21 – Stewart Title Absolute Rate (S.T.A.R.) – the charges under this section are being increased as set forth in this section.
16. Section 5.1 – Builder/Developer Bulk Rate (BBR) For Subdivisions – this section is being renamed from Subdivision Rate and Builders Bulk Rate (BBR) to more accurately reflect its intended application. Further, this section is also being significantly amended to clarify the intent and applicability of this section and to simplify the charges under this section.
17. Section 10 – Endorsements – this section has been completely overwritten to update the formatting and to reflect the significant changes to the CLTA endorsements filed and archived in 2022. In addition, the Company is filing herewith the STGC Manual changes, all of its CA – STG specific endorsements reflected in the attached Section 10, many of which have been revised.
18. Section 11.1 – Stewart Title Company Rates for Use in Connection with Properties Located in certain identified northern counties for transactions under $50,000 – this section is being deleted as of the effective date therein.
19. Section 11.2 – Residential Rate – the charges under this section are being increased as set forth in this section.
20. Section 11.6 – ALTA Concurrent Loan Rates – the charges under this section are being increased as set forth in this section.

In addition to the highlighted rate changes and endorsements referenced above, the Company is filing also filing herewith, its CA – STG Trustee’s Sale Guarantee form.

If you have any questions about this bulletin, any pricing concerns, or any other bulletin please contact a member of your Stewart Title Guaranty Company’s California Underwriting Team.

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