December Lunch & Learn with VATC -- Mark Your Webinar Calendar!

DATE: Tuesday, December 8th
TIME:  12:00 p.m. – 12:30 p.m.

Join Andy Mikell and Liz Smith for an in-depth discussion of the recently enacted Enhanced Life Estate Deed statute. We’ll cover the very important statutory definitions and explore how and why the statutory form deed is the best thing since sliced bread. Don’t miss it! If you watch the whole program and don’t check your email (not even once), you’re entitled to .5 hours of CLE!
Save the Date: VATC Lunch & Learn
January 12, 2021
12:00 p.m. - 1:00 p.m.
Underwriting Guidelines -Effective 11/18/20

For the latest guidelines please visit the VATC website, news and announcements (lower right hand corner).
Lau's Corner & Title Tips

Calculating Rates - Important Reminders:

If proceeds of a new mortgage are being used to pay off and discharge a current non-private mortgage and there is no change in ownership of the property, the premium for the new MP must be calculated at the filed refinance rate! The rate is 60% of the applicable loan rate subject to a minimum charge of $170. 

Note: If there is a mortgage of record to a commercial lender, please assume that title insurance was previously issued and apply the refinance rate. Note: It does not matter whether the prior policy was a CATIC policy or whether you were the issuing attorney.

If a there is an existing mortgage that is not being discharged and a new mortgage is being obtained, this is new money and should be calculated at the full rate.
Q&A: Survey Exception

You are are issuing a Commitment for an Expanded Protection loan policy on a SFR and the lender has asked for an affirmative coverage endorsement which contains the following language: “Policy insures against loss or damage by any violation, variation, encroachment, or adverse matter that would have been disclosed by an accurate survey.” 

Question: Can this language be provided and if so, is there an additional charge?

Answer: Yes, you can provide that language because it is already in the Expanded Protection policy! See Covered Risk #2(c) excerpted and highlighted below. There is no additional charge.

COVERED RISKS 

1.  Title being vested other than as stated in Schedule A. 
2.  Any defect in or lien or encumbrance on the Title. This Covered Risk 2 includes but is not limited to insurance against loss from: 
 (a) a defect in the Title caused by 
      (i)    forgery, fraud, undue influence, duress, incompetency, incapacity, or impersonation; 
      (ii)    failure of any person or Entity to have authorized a transfer or conveyance; 
      (iii)   a document affecting Title not properly created, executed, witnessed, sealed, acknowledged, notarized, or delivered; 
      (iv)    failure to perform those acts necessary to create a document by electronic means authorized by law; 
      (v)    a document executed under a falsified, expired, or otherwise invalid power of attorney; 
      (vi)    a document not properly filed, recorded, or indexed in the Public Records including failure to perform those acts by electronic means authorized by law; or 
      (vii)   a defective judicial or administrative proceeding.
(b) the lien of real estate taxes or assessments imposed on the Title by a governmental authority due or payable, but unpaid.
(c) any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land. The term “encroachment” includes encroachments of existing improvements located on the Land onto adjoining land, and encroachments onto the Land of existing improvements located on adjoining land.