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Comparison of Lender Title Policies

Policies and Products

Product Offered Coverage Provided Uses And Restrictions Cost ($250,000 Loan)
ALTA 2006 Loan policy Full coverage insures lien position, insures against record and off-record matters Best for purchase $ and refinance of 1st position liens, and for construction loans $525 refinance or purchase; $1400 for construction or cash equity loans (sliding scale)
ALTA Standard Loan policy Insures lien position, coverage against recorded matters only Commonly used for seller-financing and 2nd/equity loans; not recommended for construction or 1st loans $933 (equity/2nd loan only); $100 if combined with property purchase – residential)
(sliding scale)
Junior/Limited Loan policy Coverage limited to “apparent owner”, insures against “enforceable” liens Can be used for any position loan on residential property only; limit $250,000 (LLP); $500,000 (JLP) $125 up to 250K flat fee
Limited search No title insurance coverage – report only – commonly used for HELOC loans Residential property only; shows apparent owner and D/T’s & Agreements last 10 years only $75 and up
LTAA #10 Modification/Bringdown Insures priority of subsequent advances/term modifications of existing loans Best if lender prefers to modify existing note rather than creating a new 2nd lien Call for pricing
LTAA #21 Modification/Bringdown Similar to #10 but must be used if legal description has changed Best if lender prefers to modify existing note rather than creating a new 2nd lien Call for pricing

ALTA Loan Policy with ALTA Endorsement

(10/17/92)

  •  Most extensive loan coverage offered.
  • The Extended Loan Policy provides coverage dealing with off record matters.
  • In addition to matters that would be discovered through an inspection and a survey of the premises, the most important factor to the lender is the insurance of the priority of its loan over any mechanics’ or materialmen’s lien claimants.
  • Broken priority may delay closing.
  • This policy form also provides access coverage.
  • If this policy is issued concurrently with Standard Owner’s Policy then use combination. ALTA Loan Policy rate from chart.
  • Call for rates on Interim (Construction) policies for owner/builder who intends to occupy the property and for the volume user discounts for builders.

ALTA Loan Policy (Standard Coverage)

  •  The Standard Loan Policy is intended to provide coverage essentially for only those matters which could be discovered through a search of the County Recorder’s records.
  • This policy form also provides access coverage.
  • It does not include coverage for off record matters including mechanic’s lien rights.
  • If this policy is issued concurrently with Standard Owner’s Policy the rate is $100.00.

Magic Loan Policy

  •  This policy form was created specifically to eliminate the need for creating a commitment and then issuing a policy. This product is a one-step process whereby the policy is effective at such time as the deed of trust is recorded.
  • Available for any position loan.
  • Only assurances are as follows:
  1. Names the “purported owner” from the last recorded deed.
  2. Certifies that the legal description on the Mortgage Premises shown on Schedule A is correct.
  3. Certifies that there are no enforceable monetary liens affecting the Mortgaged Premises other than as shown on Schedule B.
  • Maximum loan amount for coverage is $250,000.00.
  • The charge is $125 with additional charge of $25 for recording datedown.
  • Cancellation charge is the amount of policy.

Residential Limited Coverage Junior Loan Policy (Express Policy)

  •  This policy is issued to lenders with a liability amount from $40,000.00 to $150,000.00 using $10,000.000 increments
  • No commitment is issued, one-step process, policy issued immediately, with an endorsement issued after recording of the Deed of Trust.
  • Any position loan.
  • Any size property.
  • Cancellation charge is the amount of policy.
  • Only assurances are as follows:
    1. The Grantee not being the named grantee on the last document recorded purporting to vest title.
    2. Any monetary lien affecting the title.
    3. Any taxes or assessments of any governmental taxing authority.

Formula: $90 + $20 for each increment of $10,000.00 over $40,000.00

Example: New Policy for $60,000.000 = $90 + $40 = $130

Extended Limited Realty Report

  •  No title Insurance, this report consists of a search our tract indices of the records for the last ten years without examination of the instruments which includes, the purported legal description, the apparent record owner, name search of apparent owner and any unreleased mortgage, deeds of trust and/or agreement of sales that describe our purported legals, current year taxes.
  • Charge $75.00.
  • Cancellation charge is the amount of the report.