As provided in our update on March 23, 2020, Iowa Title Guaranty is no longer requiring the COVID-19 exception to appear in
Schedule B - Part II, Exceptions
of the commitment. ITG initially created the exception to mirror those of other national underwriters, but underwriter policies are rapidly changing as the pandemic unfolds.
We have now reprogrammed CAP to allow field issuers to remove the exception still appearing on
Schedule B – Part II, Exceptions of
commitments that were issued between March 19, 2020 and March 23, 2020.
ITG still requires that the closer confirm the county recorder and courthouse are processing filings and permitting abstractor access to perform necessary final title searches through the date of the vesting deed and/or guaranteed mortgage filing.
Please see clarifications below as to the requirement now populating in
Schedule B - Part I, Requirements
of ITG commitments:
1. The requirement will
not
appear as an exception on
Schedule B – Part I or II of
the final certificate;
2. The requirement also
does NOT impact the lender’s CPL and GAP coverage
;
- If the closer fails to abide by the requirement resulting in a loss, the lender could recover under the CPL.
- ITG would pay valid claims and later seek recoupment from the closer.
3. ITG is
not
requiring lenders execute indemnification agreements or other similar types of GAP affidavits.
