Bulletin: CA2024002

Dear Associates:

Subject to the guidelines, procedures and restrictions outlined below, the expedited production of a Preliminary Report or Title Commitment (hereafter collectively referred to as “Preliminary Report”) in connection with various loan transactions involving certain types of property may result in a substantially shorter turnaround time in the production of a Preliminary Report by eliminating the need for a starter, and by replacing specific Schedule B exceptions for easements and CC&Rs with the following general exceptions:

(1)  Covenants, conditions, restrictions, or limitations, if any, appearing in the Public Records.

(2)  Any easements or servitudes appearing in the Public Records.

This expedited production procedure (EPP) may only be used in connection with refinance or other loan transaction on a 1-4 family residential property or a residential condominium, not involving a purchase or construction (including rehabs and remodels) as set forth herein. Subject to existing and future STG Underwriting bulletins and guidelines, the EPP may be used in connection with the issuance of the following loan policy forms, in strict compliance with the guidelines, procedures and restrictions set out in this bulletin: 

• 2021 ALTA Loan Policy
• 2021 ALTA Short Form Residential Loan Policy - Assessments Priority
• 2021 ALTA Expanded Coverage Residential Loan Policy - Assessments Priority
• 2021 ALTA Short Form Expanded Coverage Residential Loan Policy - Assessments Priority
• 2022 CLTA Standard Coverage Loan Policy
• 2006 ALTA Loan Policy
• ALTA Short Form Residential Loan Policy (12-03-12)
• ALTA Expanded Coverage Residential Loan Policy - Assessments Priority (04-02-15)
• ALTA Short Form Expanded Coverage Residential Loan Policy - Assessments Priority (04-02-15)

Of significance, some lenders may not accept a Preliminary Report reflecting the general exceptions in lieu of specific exceptions for easements and CC&Rs, which would then require additional searching for specific property-related exceptions and that the Preliminary Report be updated and revised accordingly.

Further, in compliance with some STG endorsement issuing guidelines, the specific recording information of certain documents is needed to review those documents in order to determine the eligibility of issuing those endorsements. Preliminary Reports issued in connection with EPP will not provide the recording information which would then require additional searching. For example, the Condo, PUD or enforced removal endorsements require the review of the applicable easements and CC&Rs.  

NOTE: To the extent the information in this bulletin conflicts with any prior bulletin, the information in this bulletin controls.

GUIDELINES, PROCEDURES AND RESTRICTIONS

The EPP is only available in connection with the following types of transactions and properties:

• Transaction is a refinance or other loan transactions that does not involve a purchase or construction (including rehabs and remodels).
• Property is a fee interest in a 1-4 family residential or residential condominium located within a platted subdivision where the lot size is no greater than 25 acres. A platted subdivision is defined as a recorded subdivision map and does not include a parcel map, record of survey or any other description of a division of land.
• Transaction does not involve any Extra Hazardous risk (e.g., Wetlands, Native American/Indian Lands, Construction, Current Ownership by TDUS, Court Order, etc.; See additional examples in the form, STG Request for Approval to Issue Overlimits (Large) Policy or Extra Hazardous Coverage, and STG Bulletin SLS2014002- UNDERWRITING – Extrahazardous Risks)
• Property does not involve any Certificate of Compliance for a lot line adjustment, parcel map waiver, or parcel merger recorded after the last insured recorded deed to a bona fide purchaser for value.

Production of a Preliminary Report in compliance with the EPP requires that the following be strictly adhered to:

1.  In the absence of a direct starter, the search must, at a minimum, come forward from the last insured recorded deed to a bona fide purchaser for value, where the documentary transfer tax statement reflects that the transfer tax was computed on the full value of the land.

2.  In connection with a reliable, direct starter, the search should come forward from the insured owner.

3.  All other existing STG protocols and guidelines including those regarding general index searches.

REMINDER: A loan policy or a Preliminary Report issued in compliance with this bulletin (or the prior bulletin being replaced) shall not be used as a starter. 

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.