Stewart Title Guaranty Company
P. O. Box 2029 Houston, Texas 77252-2029 (800) 729-1902
|Date:||August 12, 2002|
|To:||All Issuing Offices|
We were recently apprised of a situation in which a lender told an agent that it did not require title insurance on its proposed first trust, but that the lender did require a commitment and an insured closing letter (ICL) prior to closing.
As a reminder, our commitment is a contract with the proposed insured named on Schedule A to issue it a policy of title insurance and is issued only when a policy of title insurance is contemplated. The ICL is issued to a mortgagee "When title insurance.... is specified in connection....with closing of real estate transactions...." If no policy is contemplated, then no ICL should be issued.
You should not issue a commitment unless a title policy is ordered or an insured
closing letter if you will not be issuing a Stewart Title Guaranty Company
policy in connection with the transaction. If an ICL has been issued, it should