RATES & RULES FILING STATE OF MICHIGAN. EFFECTIVE March 1, 2006 RESIDENTIAL FIDELITY NATIONAL TITLE INSURANCE COMPANY GREAT LAKES REGION

Transcription

1 RATES & RULES FILING STATE OF MICHIGAN EFFECTIVE March 1, 2006 RESIDENTIAL FIDELITY NATIONAL TITLE INSURANCE COMPANY GREAT LAKES REGION West Six Mile Road, Suite 100 Livonia, Michigan Toll Free: (800) Agency Services Center Fax: Livonia Fax: (734) REV 2/06-Amended 3/06

2 ALL-INCLUSIVE RATE PLAN INDEX I. Basic Rate for Owner's Policies, Leasehold Policies, Loan Policies, Loan Policies (without standard exceptions) And ALTA Homeowners and Expanded Coverage Residential Loan Policies 2-3 II. Removal of Standard Exceptions from Owner's Policies 4 III. Reissue of Owner's and Loan Policies 5 IV. Basic Rate for Loan Policies (with standard exceptions) 6 V. Standard Exceptions - Loan Policies 7 VI. Loan Policy with an Owner's Policy Issued Simultaneously 7 VII. Master Policy 7 VIII. Builder's Rate 7 IX. Abstract Surrender Credit 8 X. Short Term Construction or Builder's Loan Policy 8 XI. Increase in Insurance Under Existing Policies 8 XII. Policies Insuring Land Contract Interests 8 XIII. Endorsements to Owner's or Loan Policies Which Do Not Extend the Effective Date thereof 9 XIV. Endorsements to Loan Policies Which Extend the Effective Date of the Policy 9 XV. Zoning Endorsements 9 XVI. Construction Loan Endorsements 9 XVII. Revolving Credit Endorsement 9 XVIII. Usury Endorsement 10 XIX. Endorsements 10 XX. Policy At Closing Endorsement 11 XXI. Standard Policies and Commitment 11 XXII. Residential Title Insurance Policy 12 XXIII. Short Form Residential Loan Policy 12 XXIV. Master Residential Loan Policy 12 XXV. Additional Chains of Title 12 XXVI. Cancellation Charge 12 XXVII. General rules 13 XXVII. General rules 13 XXIX. Arbitration Rules XXX. Refinance Loan Policies 14 FNTIC i Effective Date: March 1, 2006

3 XXXI. Limited Coverage Title Policy Rates XXXII. Mortgage Foreclosure Guarantee and Commitment for Title Insurance XXXIII Master Home Equity Loan Policy 17 XXXIV Extraordinary Risk Fee 18 FNTIC Effective Date: March 1, 2006 ii

4 FIDELITY NATIONAL TITLE INSURANCE COMPANY RATES & RULES FILING OF ALL INCLUSIVE RATE PLAN FOR STATE OF MICHIGAN RESIDENTIAL This All-inclusive Rate Plan shall be applicable to policies covering lands located in all counties in the. This rate plan includes ordinary charges for title searches, tax searches, examination of title, one commitment and the title insurance policy. This rate plan applies to both commercial and residential risks based upon a single chain of title. A residential risk is defined as being a one to four family dwelling used exclusively for residential purposes. Commercial risks are defined as all lands other than residential. When the examination of title involves matters of more than ordinary complexity or risk, the Company reserves the right to make an additional charge. Any additional charges will be filed for approval by the Commissioner pursuant to MCLA Other than the additional charges referred to in the preceding sentence, this rate plan expresses the rates to be charged for each of the coverages described. Owner's policies will not be issued in an amount less than the market value of the property. Loan policies will not be issued for an amount less than the mortgage loan or the unpaid balance of the mortgage. Leasehold policies will not be issued for less than the aggregate of the rentals payable under the lease in connection with which the policy is requested or the market value of the premises, whichever is less. The Company reserves the right to decline any application for the issuance of a policy or for the increase of an existing policy. 1

5 I A. BASIC RATE FOR OWNER'S POLICIES LEASEHOLD POLICIES LOAN POLICIES LOAN POLICIES (without standard exceptions) For the first $1,000 of liability (or fraction thereof)...$ thereof) to and including $50,000...$5.00 thereof) in excess of $50,000 and up to $100,000...$4.00 thereof) in excess of $100,000 and up to $200,000...$3.50 thereof) in excess of $200,000 and up to $300,000...$3.00 thereof) in excess of $300,000 and up to $1,000,000...$2.50 thereof) in excess of $1,000,000 and up to $4,000,000...$2.00 thereof) in excess of $4,000,000 and up to $5,000,000...$1.50 thereof) in excess of $5,000,000...$1.00 The rates indicated herein for risks of $1,000,000 or more are limited to residential purposes and premises. For rates for risks of $1,000,000 or more for other than residential purposes and premises see the All-Inclusive Rate Plan for Commercial Risks. 2

6 B. ALTA HOMEOWNERS POLICY OF TITLE INSURANCE FOR ONE-TO-FOUR FAMILY RESIDENCE AND ALTA EXPANDED COVERAGE RESIDENTIAL LOAN POLICIES For the first $1,000 of liability (or fraction thereof)...$ thereof) to and including $50,000...$5.50 thereof) in excess of $50,000 and up to $100,000...$4.40 thereof) in excess of $100,000 and up to $200,000...$3.85 thereof) in excess of $200,000 and up to $300,000...$3.30 thereof) in excess of $300,000 and up to $1,000,000...$2.75 thereof) in excess of $1,000,000 and up to $4,000,000...$2.20 thereof) in excess of $4,000,000 and up to $5,000,000...$1.65 thereof) in excess of $5,000,000...$1.10 3

7 II REMOVAL OF STANDARD EXCEPTIONS FROM OWNER'S POLICIES Fidelity National Title Insurance Company Although owner's policies are normally issued subject to the standard exceptions listed below, the Company, at no additional charge, will remove any one or more of the standard exceptions A through F upon request and upon submission to the Company of evidence acceptable to the Company as justification for such removal. The standard exceptions referred to are: A. Rights or claims of parties in possession not shown of record. B. Unrecorded water, mineral and oil rights, unrecorded easements and claims of easement, boundary line disputes not disclosed of record. C. Such state of facts as would be disclosed by an accurate survey or personal inspection of the premises. D. Mechanics' liens not of record. E. Restriction upon the use of the premises not appearing in the chain of title. F. The dower or homestead rights, if any, of the wife of any individual shown herein to be a party in interest. Underwriting rules for removal of Standard Exceptions: Standard Exception A may be removed by an affidavit by the seller and, depending upon the circumstance, the review of a current dated survey and surveyors certificate indicating no off record possessory interest exists on the property. Standard Exception B can also be removed with a sellers affidavit and a survey showing no such problems exist, except in an area where it is not unusual for unrecorded oil and gas leases to exist and be assigned without providing constructive notice. Obviously, little risk would be inherent in removing this exception when insuring a residential lot and block within a city limit, however, on large rural acreage much more caution must be used. 4

8 Standard Exception C can be eliminated upon examination of a proper survey. However, the underwriter will add, as exceptions, any discrepancies or problems revealed by their examination of the survey. Standard Exception D. This is a troublesome and high risk area. The least risk exists when this exception is removed on a resale house, based on the affidavit of the seller that no work was let and not fully paid for which could result in a mechanics lien. On newly constructed properties the problem is compounded and the credit worthiness of the builder is scrutinized prior to accepting his affidavit and undertaking over mechanics' liens. If any question exists, an inspection of the property for any evidence of new construction must be made prior to considering the removal of this exception from an owner's policy. Standard Exception E. Generally, this item can be eliminated on a residential property by an affidavit from the seller that no restrictions exist. In the instance of commercial property where leases exist (partially recorded or unrecorded) the lease must be examined for any such restrictions. Standard Exception F can be eliminated by having the spouse of an individual in title join in the deed. Investigation and personal knowledge of the individual's marital status by someone involved in the transaction, and an affidavit by the individual claiming to be single are the only defenses to this type of claim. III REISSUE OF OWNER'S AND LOAN POLICIES When the issuance of an owner's or loan policy is based upon an existing owner's or loan policy, a credit against the Basic Rate will be given in computing charges for the new policy up to the amount of the existing policy, in accordance with the table below. Additional insurance will be charged at the Basic Rate. The minimum charge for a reissue policy will be $ under Sections IA and IV, and $ under Section IB. In computing a reissue rate on loan policies, if the former loan policy is one "with exceptions" and the new policy is to be "without exceptions", the reissue rate will be figured on the "without exceptions" rate. Where the former policy is "without exceptions" and the new is "with exceptions", the reissue rate will be figured on the "with exceptions" rate. EFFECTIVE DATE OF EXISTING POLICY PERCENT OF BASIC RATE Less than 1 year old (minimum charge $190.00) 40% 1 year to 3 years (minimum charge $190.00) 60% 3 years to 5 years (minimum charge $190.00) 80% 5 years and over (minimum charge $190.00) 90% 5

9 Where a title policy is applied for in connection with a foreclosure of a mortgage or land contract or to insure a voluntary conveyance in lieu of a foreclosure, the rates in force covering the issue and reissue of owner's policies will apply. If the foreclosure is not carried through or a redemption is effected, a charge of $ will be made. IV BASIC RATE FOR LOAN POLICIES (with standard exceptions) For the first $1,000 of liability (or fraction thereof)...$ thereof) to and including $50,000...$4.00 thereof) in excess of $50,000 and up to $100,000...$3.00 thereof in excess of $100,000 and up to $200,000...$2.75 thereof) in excess of $200,000 and up to $300,000...$2.50 thereof) in excess of $300,000 and up to $1,000,000...$2.00 thereof) in excess of $1,000,000 and up to $5,000,000...$1.50 thereof) in excess of $5,000,000...$1.00 The rates indicated herein for risks of $1,000,000 or more are limited to residential purposes and premises. For rates for risks of $1,000,000 or more for other than residential purposes and premises see the All-Inclusive Rate Plan for Commercial Risks. 6

10 V STANDARD EXCEPTIONS-LOAN POLICIES: A. Rights or claims of persons in possession not of record. B. Mechanics' liens not of record. C. Such state of facts as would be disclosed by an accurate survey and personal inspection of the insured premises. VI LOAN POLICY WITH AN OWNER'S POLICY ISSUED SIMULTANEOUSLY: An Owners Policy will be issued at the published rate under Section I or III hereof. A Loan Policy will be issued for 40 percent of the rate for Loan Policies set forth in Section I or IV hereof. A minimum charge of $ or $200.00, respectively, as set forth in Sections I, III and IV will be made. Where the owner's policy is applied for by an operating builder on new construction, this paragraph does not apply. VII MASTER POLICY A subdivider or a developer may secure for the basic rate, a master fee policy covering ten or more lots. He may obtain sub-policies covering individual lots which will be issued at a sub-policy rate of $50.00 per lot or building site. The right to obtain a sub-policy under the master policy shall be limited to the insured or his immediate grantee. VIII BUILDER'S RATE A. When an Owner s Policy in the full amount of the purchase price is applied for to insure a sale of a newly constructed one-to-four family residence, the Reissue Rate as set forth in Section III shall not apply, and the Owner s Policy will be issued for 60% of the Basic Rate set forth in Section I, with the minimum premium being no less than $ B. When a Loan Policy is to be issued by the Company simultaneously with an Owner s Policy as described in Paragraph A above, regardless of whether or not Fidelity National Title issues the other policy, the Loan Policy will be issued at the Simultaneous Rate set forth in Section VI, with the minimum premium no less than $

11 IX ABSTRACT SURRENDER CREDIT An abstract surrender credit may be given in cases in which the reissue rate is not applicable and where an abstract which is certified as to the property to be insured (or as to a description which includes said property) is presented and surrendered at the time of application for title insurance. The credit shall be $1.00 per thousand applied against the Basic Rate, up to a maximum credit of $ Abstracts surrendered for credit shall become the property of the insuring company or the agent which issues the policy on which credit is given. X SHORT TERM CONSTRUCTION OR BUILDER'S LOAN POLICY Where a construction or builder's mortgage is to be refinanced within eighteen (18) months from the date of the loan policy, and where said mortgage must be fully paid within eighteen (18) months, notwithstanding that the mortgagor may be changed, a policy insuring said construction or builder's mortgage will be issued for a charge of 40 percent (40%) of the Basic Rate for loan policies, with a minimum charge of $ under Sections IA and IV, and $ under Section IB. Under this provision, there is no reissue credit applied to subsequent policies except policies issued pursuant to a foreclosure of the insured mortgage. XI INCREASE IN INSURANCE UNDER EXISTING POLICIES Whenever an increase in the amount of insurance in effect is applied for by the holder of a policy of owner's title insurance, which increase is to be as of the date of the original policy, the rate to be charged for such increase shall be based upon the insurance rate plan in effect as of the date of the application for the increase. The charge for the issuance of the endorsement effecting such increase shall be $ XII POLICIES INSURING LAND CONTRACT INTERESTS Individual policies may be issued insuring the respective interests of vendor and vendee in a land contract. When both policies have an identical effective date, the charge for the vendor's policy will be at the applicable policy rate; the charge for the vendee's policy will be $ Such policies will contain appropriate language limiting the liability to the face amount of either policy rather than the aggregate of both policies. 8

12 XIII ENDORSEMENTS TO OWNER'S OR LOAN POLICIES WHICH DO NOT EXTEND THE EFFECTIVE DATE THEREOF (FORM CT-238) The Company may issue endorsements in conjunction with its owner's or loan policies, which endorsements modify the coverage of said policies, but do not extend the effective date thereof. The charge for such endorsements is $ XIV ENDORSEMENTS TO LOAN POLICIES WHICH EXTEND THE EFFECTIVE DATE OF THE POLICY (FORM CT-238) The Company may, upon application of a mortgagee-insured, issue endorsements to loan policies which extend the effective date of the policy. The charge for such endorsements is $ If the amount of insurance is increased by said endorsements, an additional premium charge for the additional insurance will be made, calculated at the Basic Rate. XV ZONING ENDORSEMENTS (FORMS CT-470 and CT-471) Whenever a policy is issued containing an ALTA Zoning Endorsement 3.0, a charge of 10 percent (10%) of the applicable published owner's policy rate or loan policy rate will be assessed, subject to a minimum charge of $50.00, and when an ALTA Zoning Endorsement 3.1 is issued, a charge of 15 percent (15%) of the applicable published owner s policy or loan policy rate will be assessed, subject to a minimum charge of $ XVI CONSTRUCTION LOAN ENDORSEMENTS (FORMS CT-483 and CT-484) Endorsements to commitments and/or policies insuring construction loans, which require periodic, usually monthly, date down endorsements, increasing the coverage to cover the amounts actually disbursed and including a current search of the public records noting any changes, such as mechanics lien, will be charged at $75.00 per such endorsement. XVII REVOLVING CREDIT ENDORSEMENT (FORM CT-399) Whenever a mortgage policy is issued including the Revolving Credit Endorsement, an additional charge of one dollar ($1.00) per thousand dollars of coverage with a minimum charge of $ will be made. 9

13 XVIII USURY ENDORSEMENT (FORM CT-693) Whenever a policy is issued containing an ALTA Usury Endorsement, a charge of 10 percent (10%) of the applicable published owner's policy rate or loan policy rate will be assessed, subject to a minimum charge of $ XIX ENDORSEMENTS The following Endorsements may be issued at the stated charges upon request. FORM NO. DESCRIPTION.....CHARGE CT Street Assessments....No Charge CT-312..Truth in Lending... No Charge CT-308 Condominium Endorsement..No Charge CT-69 Planned Unit Development....No Charge CT-037 Variable Rate Mortgage 6.0..No Charge CT-189 Variable Rate Mortgage 6.1..No Charge CT-041 Variable Rate Mortgage-Negative Amortization 6.2..No Charge CT-199 Manufactured Housing Unit...No Charge CT-624 Environmental Protection Lien 8.1 No Charge CT-659 Home Owner's Inflation Endorsement.No Charge CT-485 Comprehensive Endorsement...No Charge CT-663 Location Endorsement No Charge CT-491 Pending Disbursement Endorsement...No Charge CT-641 Contiguity Endorsement..No Charge CT-698 Variable Rate-Convertible Mortgage.No Charge CT-469 ALTA Endorsement Form 9 No Charge ALTA Endorsement Form 9.1.No Charge ALTA Endorsement Form % of Basic Rates CT-190 FNMA Balloon Mortgage..No Charge CT-238 Blank Endorsement...No Charge MI ALTA 10 ALTA 10 Assignment Endorsement $ MI ALTA 10.1 ALTA 10.1 Assignment and Date Down Endorsment..$ MI ALTA 11 ALTA 11 Mortgage Modification..$ MI CLTA CLTA Endorsement 0-10% Based on Risk MI Fairway Fairway Endorsement.10% of Basic Rates MI Non-Imp Non-Imputation Endorsement 10% of Basic Rates MI Mezz. Mezzanine Financing..15% of Basic Rates MI Sub Con Subdivision Control..5% of Basic Rates MI First Loss..First Loss % of Basic Rates 10

14 XX POLICY AT CLOSING ENDORSEMENT (PACE) A residential owner may request a PACE which will convert an ALTA Commitment into and Owners Policy at closing. The commitment is marked-up, as is standard procedure. The endorsement deletes requirements from the commitment, exceptions may be deleted specifically on the endorsement. The endorsement is then placed inside the applicable Owners Policy jacket. The closing documents are recorded immediately. XXI STANDARD POLICIES AND COMMITMENT OWNER'S 1312 Jacket U31-A/S Schedule A U31-B/22 Schedule B MORTGAGE 1412 Jacket U41-A/S Schedule A U41-BI/22 Schedule B U41-BII Schedule B, Part II ALTA HOMEOWNER'S Jacket U131-A Schedule A U131-B Schedule B ALTA EXPANDED RESIDENTIAL LOAN 1661 Jacket U66-A Schedule A U66-B Schedule B LEASEHOLD OWNER'S 1512 Jacket U51-A Schedule A U51-B Schedule B LEASEHOLD MORTGAGE 1612 Jacket U61-A Schedule A U61-BI Schedule BI U61-BII Schedule B, Part II COMMITMENT Jacket U86-A Schedule A U86-BI Schedule BI U86-BII Schedule BII 11

15 XXII RESIDENTIAL TITLE INSURANCE POLICY 1357 Jacket U35-A Schedule A U35-B/22 Schedule B Fidelity National Title Insurance Company The residential Title Insurance Policy is a "plain language" owner's policy, this policy will be issued to the insured where the premises are a one to four family dwelling used for residential purposes. The American Land Title Association Leasehold Policy will be issued for commercial transactions. XXIII SHORT FORM RESIDENTIAL LOAN POLICY (FORM 1222 and 1212) This policy incorporates by reference all of the insuring provisions, exclusions from coverage, and conditions and stipulations set forth in Policy Form No. 1412, and is issued only when requested by a lender on one to four family residential property. The policy contains preprinted standard exceptions and affirmative coverages which are commonly encountered in these residential transactions. XXIV MASTER RESIDENTIAL LOAN POLICY The American Land Title Association (ALTA) Master Policy consists of an ALTA Loan Policy Jacket, 10/21/87-Amended 4/6/90, our Form No The Residential Loan Certificate, our Form No and Addendum to Residential Loan Certificate, our Form No. U72-ADD is incorporated into and becomes a part of the Master Policy. The Master Policy sets out the general insuring provisions. It is a master contract between the Fidelity National Title Insurance Company and a particular lender and is intended to cover all qualified loans which we will insure for that lender. The Certificate, when issued and properly executed, increases liability under said Master Policy. XXV ADDITIONAL CHAINS OF TITLE When the examination of title involves more than one chain of title or unusual complexity, or when additional work is requested by the insured, a work charge of $ per hour may be made. XXVI CANCELLATION CHARGE If a commitment is issued and is subsequently canceled because the contemplated transaction is not consummated, a base cancellation fee of $50.00 will be charged. If a transaction is consummated in reliance upon a commitment, then the full indicated premium will be charged in accordance with the regularly scheduled rates. 12

16 XXVII General rules for exceptions shown in Schedule "B" (Forms U31-B/22; U41-BI/22; U51-B; U61-BI; U131-B; U66-Band U35-B/22) The above schedules are completed after the search and examination of the title to the real estate to be insured. The exceptions will vary from parcel to parcel as will the requirements (Schedule B Item I) depending on the nature of the transaction. Schedule B Part I would generally call for a proper deed from the fee owner, plus releases of any mortgages, liens, etc. Schedule B Part II would list any further exceptions to the title. This section contains the standard exceptions, taxes, and any other items such as deed restrictions, subdivision restrictions, recorded easements and any other matter of record which effect the real estate. Schedule B Part II is sometimes used to list after filed liens such as second mortgages, UCC filings, etc. XXVIII General rules for the use of continuation schedules and blank endorsements. Our Form U426 is merely a continuation schedule and can be used to continue Schedule A or B since many times the legal description might be too lengthy to fit on Schedule A or the exceptions or encumbrances are so numerous in Schedule B that they run over onto another page. The CT-238 endorsement is used to change both commitments and/or policies. For instance, the proposed insured s, either the buyer or mortgagee, might change after the issuance of a commitment, but prior to closing, or a newly filed lien or other encumbrance might be recorded prior to the closing. An endorsement would be issued to show these changes. XXIX MANUAL OF RATES WHICH APPLY WHEN TITLE INSURANCE ARBITRATION RULES OF THE AMERICAN ARBITRATION ASSOCIATION WILL BE AVAILABLE IN THE EVENT OF A CLAIM UNDER A TITLE INSURANCE POLICY OR ENDORSEMENT (FORM T ARB) These rules apply to all policies issued which contain provisions, either in the policy or in an endorsement to the policy, which either permits or requires the Company and the insured to submit to binding arbitration. 13

17 The Company will submit to the insured claimant as defined in the Policy, without charge, a copy of the Title Insurance Arbitration Rules of the American Arbitration Association, under any of the following circumstances: 1. the insured or insured claimant makes a written request for a copy of the rules; 2. after the Company has received a notice of claim from the insured claimant, and upon the company's first response to the claimant, unless the tender of the claim is accepted by the Company without reservation of rights against the insured claimant, in writing. XXX REFINANCE LOAN POLICIES When a first mortgage loan is refinanced by the same borrower, a rate which is 50% of the Basic Rate will be charged based upon the lesser of: the face amount of the prior first mortgage or the policy to be issued. Any additional coverage in excess of the face amount of the prior first mortgage will be issued at the Basic Rate. If the prior first mortgage is less than one year old and the application of the reissue rate in Section III hereof would result in a lower premium, the lower premium will apply. The minimum charge for a policy issued under this paragraph will be $ under Sections IA and IV, and $ under Section IB. The Company may require that the previous policy or a complete copy thereof be presented to the Company or its agent for review before agreeing to provide the refinance loan rate. XXXI LIMITED COVERAGE TITLE POLICY RATES A. LIMITED COVERAGE RESIDENTIAL LOAN POLICY (Available for loans secured by one-to-four family residential property.) For the first $20, of liability (or fraction thereof)...$ For each additional $1, (or fraction thereof) to and including $50, For each additional $1, (or fraction thereof) in excess of $50, and up to $100, For each additional $1, (or fraction thereof) in excess of $100,

18 The Limited Coverage Residential Loan Policy is provided by an ALTA Loan Policy which excepts from coverage more matters than are excepted in the Loan Policy with Standard Exceptions dealt with in Section IV of this manual. It provides the lender with an additional choice of coverage at a lower rate. The Limited Coverage Residential Loan Policy may, at the request of the insured, be issued using the Short Form Residential Subordinate Loan Policy. The Exceptions which are incorporated into this policy are as follows: 1. Those taxes and special assessments which become due and payable subsequent to Date of Policy, or which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public record. Proceedings by a public agency which may result in taxes or assessments, or notice of such proceedings, whether or not shown by the records of such agency or the public record. 2. Any discrepancies or conflicts in boundary lines, any shortages in area, or any encroachment or overlapping of improvements. 3. Any facts, rights, interests or claims which are not shown by the public records, but which could be ascertained by an accurate survey of the land or by making inquiry of persons in possession thereof. 4. Easements, liens or encumbrances or claims thereof, which are not shown by the public records. 5. Any lien or right to lien for services, labor or material imposed by law and not shown by the public records. 6. Covenants, conditions and restriction, if any, appearing in the public records. 7. Any easements or servitudes appearing in the public records. 8. Any lease, grant, exception or reservation of minerals or mineral rights appearing in the public records. B. ALTA RESIDENTIAL LIMITED COVERAGE JUNIOR LOAN POLICY (Available for loans to be secured by one-to-four family residential property.) For up to $250, of liability... $95.00 If Endorsement 27-E-JR1 is made a part of the Policy... add: If loan for which Policy is issued is a Revolving Credit Loan Endorsement 27-E-JR2 may be made a part of the Policy... No Charge 15

19 The ALTA Residential Limited Coverage Junior Loan Policy insures a lender that the person named as Grantee in the Policy is the Grantee in the last recorded deed affecting the land, and that all recorded liens affecting the property are disclosed in the Policy. All real estate taxes that are liens on the property must also be disclosed in the Policy. Endorsement 27-E-JR1 extends the coverage date through the date the mortgage securing the lender s loan is recorded. Endorsement 27-E-JR2 modifies the Conditions and Stipulations to permit coverage to continue to extend the mortgage identified in Endorsement 27-E-JR1 securing advances made by the lender in the future. XXXII MORTGAGE FORECLOSURE GUARANTEE AND COMMITMENT FOR TITLE INSURANCE (FORMS 12943, U-294, U-294-A, U-294-BI and U-294-BII) Amount of Insurance A Guarantee and Commitment shall be written in an amount of insurance equal to the face amount of the mortgage which is to be foreclosed, unless one of the following applies: 1) In an amount equal to the value of the premises, if the face amount of the mortgage to be foreclosed exceeds the value of the premises; or 2) In an amount allocated by the Proposed Insured and agreed to by the Company, if the mortgage to be foreclosed secures a loan on multiple properties. Basic Rate For Mortgage Foreclosure Guarantee For the first $200, of liability (or fraction thereof...$ For each additional $1, (or fraction thereof) to and including $300, For each additional $1, (or fraction thereof) in excess of $300, and up to $400, For each additional $1, (or fraction thereof) In excess of $400, and up to $1,000, For each additional $1, (or fraction thereof) in excess of $1,000,

20 The Company may at the request of the Proposed Insured, provide updated Commitment and Guarantee Endorsements at a rate not to exceed $75.00 per update or endorsement. The Company at the request of the Proposed Insured will issue an Owners Policy when the requirements for the policy shown in Schedule B-I of the Guarantee and Commitment have been met provided: 1) The Proposed Insured requests the issuance of the policy within 275 days following the expiration of the redemption period provided for by Michigan law and agreed to by the Company; 2) The Proposed Insured is the grantee in the sheriffs deed issued pursuant to the foreclosure sale; 3) The policy is issued with an Amount of Insurance equal to the bid price paid at the foreclosure sale; 4) The policy is issued to a Named Insured that is the Proposed Insured in the Guarantee and Commitment, its wholly owned affiliated company or the governmental agency or governmental instrumentality which was the insurer or guarantor under an insurance contract or guaranty which insured or guaranteed the indebtedness secured by the mortgage which was foreclosed; and 5) The premium for the policy is paid at the basic owners policy rate less credit for 80% of the amount paid in this section for the Guarantee and Commitment pursuant to which the policy is issued under this section. Form Number is the jacket of the Foreclosure Guarantee and Commitment for Title Insurance Form Number U-294-A is Schedule A of the Foreclosure Guarantee and Commitment for Title Insurance Form Number U-294-BI is Schedule B-Section I of the Foreclosure Guarantee and Commitment for Title Insurance Form Number U-294-BII is Schedule B-Section II of the Foreclosure Guarantee and Commitment for Title Insurance Endorsement Form Number U-294 is used to amend the effective date, the amount of coverage, or Schedules B-I or B-II of the Foreclosure Guarantee and Commitment for Title Insurance. XXXIII Master Home Equity Loan Policy For home equity loan transactions up to $250,000 with centralized order tracking and processing through National Lender s Solution or similar unit, pursuant to a written agreement, the rate shall be $ For home equity loan transactions from $250,000 up to $500,000 with centralized order tracking and processing through National Lender s Solution or similar unit, pursuant to a written agreement, the rate shall be $

21 XXXIV Extraordinary Risk Fee When the land to be insured is located in a county where there is a recording delay at the local Register of Deeds Office, and extraordinary work fee may be assesses according to the following schedule: Recording Delay Fee 1 to 2 weeks 1.5% of Premium 2-4 weeks 2% of Premium 4-8 weeks 2.5% of Premium 8-12 weeks 3% of Premium Over 12 weeks 4% of Premium 18