When a Closing Protection Letter Is No Longer Needed:
Don’t Forget to Rescind
In the course of a real estate transaction, it is not uncommon for requirements to shift as closing approaches. Lenders may revise instructions, underwriting conditions can change, and in some cases, a previously requested Closing Protection Letter (CPL) is ultimately deemed unnecessary.
While this may seem like a minor adjustment, it is important for agents and attorneys to take one final step: formally rescind the CPL.
Why Rescinding Matters
If a CPL is issued but no longer required, simply leaving it in place can create confusion during post-closing processing. More importantly, it may result in unnecessary fees being applied to the file.
Recent correspondence highlights that when a CPL remains active, it can still appear on invoices or agent statements—even if it was never needed for the transaction.
How to Rescind a CPL
Rescinding a CPL is quick and straightforward through ICL Express:
-
Login to ICL Express
- Navigate to the applicable CPL
- Click “Actions”
- Scroll down and select “Rescind”
Once rescinded, the CPL is removed from the transaction and will no longer be treated as an active item.
Avoiding Unnecessary Fees
If a CPL is not rescinded, policy processing will continue to treat it as outstanding, meaning they will be looking for the associated fee. At CATIC, this is typically a $50 CPL fee payable with your policy remittance.
By taking a moment to rescind any unused CPLs, you can:
- Prevent billing discrepancies
- Avoid follow-up from policy processing
- Keep your file clean and accurate for final submission
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