April 3, 2013
ATGF has submitted a new Form/Rate/Rule Filing to the Utah Department of Insurance, and are waiting for the requisite 30 days to pass for it to become effective. On or about April 21, 2013 (the effective date could change), ATGF will begin charging for Closing Protection Letters (‘CPLs”) issued to lenders, buyers and other appropriate parties to a real estate transaction. On and after the effective date, when a CPL is issued, a $25 fee shall be paid by each person or entity to whom/which a CPL is issued; the fee will be collected at closing. The title agent will then disburse the CPL fee directly to ATGF without offset or split. The CPL fee is not charged or collected if the transaction for which the CPL is issued does not close.
HB047Sub3, passed during the 2013 General Session, and just signed by the Governor, enacted new Utah Code Section 31A-4-117. Among other things, 31-4-117 prohibits title insurance underwriters from sharing the CPL fee with their agents.
A copy of ATGF’s filed CPL form, along with ATGF’s filed Rate and Rule language, as it will appear in the ATGF Rate Manual, accompany this announcement.
As a follow-up to this announcement, you will be receiving detailed information and instruction on how to use EPIC to generate fee-based CPLs, to properly post the fee to the HUD, and to collect and remit the fee to ATGF.
For more information, please don’t hesitate to contact the Utah office at 801-328-8229.