TITLE INSURANCE.docx

TITLE INSURANCE Line of Credit – no premium is due as long as total amounts advanced do not exceed amount originally insured Regardless of whether mortgage is spread to include additional property Mutual Indemnification Treaty Mortgages Automatic for mortgages under $500,000. Above needs indemnifica...

TITLE INSURANCE Line of Credit – no premium is due as long as total amounts advanced do not exceed amount originally insured Regardless of whether mortgage is spread to include additional property Mutual Indemnification Treaty Mortgages Automatic for mortgages under $500,000. Above needs indemnification letter Reissue Rate Must provide copy of Prior OWNER Policy Policy in favor of current SELLER Applies to New loan policy (if refinance) New owner policy (if sale) Unimproved – doesn’t matter effective date Improved – prior policy less than 3 years old (based on anticipated recording date of new documents Substitution loan Applies if: Less than $250,000 Same owner Same lender Same property $250,000 or more Same owner Same property Can be different lender Application Only as to unpaid principal amount of loan paid off Refinances Modifications - Substitution rate applies to anything OTHER THAN: Extension of time Decrease in interest If variable rate, cap not greater than original cap or original rate Increase in rate with exception for loss of priority occasioned by increase Change amortizational to extend term Release security Correction to comply with commitment Future advances pursuant to statute Encumbrance of additional parcels under revolving construction loans Rates: 3 years or less rate is 30% of regular 3-4 years 40 % 4-5 years 50% 5-10 years 60% Additional Requirements