R-8. Mortgagee Policy, on a Loan to take Up, Renew, Extend or
Satisfy an Existing Lien(s)----On a
Mortgagee Policy, issued on a loan to fully take up, renew, extend or satisfy
an old mortgage(s) that is already insured by a Mortgagee Policy(ies), the new policy being in the amount of the note of the
new mortgage, the premium for the new policy shall be at the Basic Rate, but a
credit shall reduce the premium by the following amount:
(a) 40% of the premium calculated at the
current rate on the written payoff balance of the old mortgage, such renewal
occurring within two (2) years from the date of the Mortgagee Policy insuring
the old mortgage;
(b) 35% of the premium
calculated at the current rate on the written payoff balance of the old
mortgage, such renewal occurring more than two (2) years but less than three
(3) years from the date of the Mortgagee Policy insuring the old mortgage;
(c) 30% of the premium
calculated at the current rate on the written payoff balance of the old
mortgage, such renewal occurring more than three (3) years but less than four
(4) years from the date of the Mortgagee Policy insuring the old mortgage;
(d) 25% of the premium
calculated at the current rate on the written payoff balance of the old
mortgage, such renewal occurring more than four (4) years but less than five
(5) years from the date of the Mortgagee Policy insuring the old mortgage;
(e) 20% of the premium
calculated at the current rate on the written payoff balance of the old
mortgage, such renewal occurring more than five (5) years but less than six (6)
years from the date of the Mortgagee Policy insuring the old mortgage;
(f) 15% of the premium
calculated at the current rate on the written payoff balance of the old
mortgage, such renewal occurring more than six (6) years but less than seven
(7) years from the date of the Mortgagee Policy insuring the old mortgage.
After the
lapse of seven (7) years from the date of the Mortgagee Policy insuring the old
mortgage, the Basic Rate shall apply.
Where more
than one chain of title, as the term "chain of title" is from time to
time defined by the Commissioner, was involved in the issuance of the original policy(ies), and the new policy
includes one or more of such additional chains of title involved in the
issuance of the original policy(ies), an additional
premium charge as established by the Commissioner shall be added for each
additional chain of title involved. (See Rule R-9 for
definition of "additional chain.")
On
Mortgagee Policies, issued on multiple loans to fully take up, renew, extend or
satisfy an old mortgage insured by a single Mortgagee Policy, the new policies
being in the amount of the new mortgages, the premium for the larger Mortgagee
Title Policy shall be at the Basic Rate, but a credit shall be allowed upon the
premium as set forth previously in this rule. The premium for the remaining new
Mortgagee Title Policy(ies)
shall be at the Basic Rate. A credit shall still be allowed upon the premium as
set forth in this rule even if not all of the new loans are insured or if only
one of the new loans is insured. The reduction in rate as herein prescribed
shall not apply to any case where any additional property not covered by the
original policy(ies) is
included in the policy to be issued.
In the
calculation of the credit, the amount from the written payoff balance shall not
exceed 100% of the original amount of the old mortgage. In no event shall the
premium collected be less than the regular minimum promulgated rate for a
Mortgagee Policy.
THIS RULE
MAY NOT BE APPLIED in connection with the issuance of a series of Mortgagee
Policies issued by reason of notes being apportioned to individual units in
connection with a master policy covering the aggregate indebtedness, including
improvements. Individual Mortgagee Policies must be issued at the Basic Rate.
If you require more detailed information regarding this credit please
contact your closer at Lone Star Title Company.
