Short Form Loan Policies - BREAKING NEWS!
There has been push back from the Secondary Market about inserting "self-removing" Schedule B, Exceptions on Short Form policies for mortgages that need to be discharged. Some investors are requiring post-closing endorsements to remove the Exception (even though it was "self-removing"!).
So, in order to reduce post-closing file touches, we are changing our policy preparation procedures such that you no longer need to insert "self-removing" Exceptions for existing mortgages on Short Form policies. We are crossing our fingers and hoping that mortgages will be paid off at closing and that discharges will be obtained and recorded.
Note: This applies to Short Form policies only so if you are issuing a Policy Commitment, please continue to list ALL undischarged mortgages on Schedule B, Part I Requirements.
Note: If your office is not the Settlement Agent, please ensure that the acting Settlement Agent has knowledge of all existing Mortgages. Disclosure could be by: title report, cover letter or email transmission.
Please call our office with any questions. Thank you.