DATE: June 1, 2022
TO: AGENTS OF TEXAN TITLE INSURANCE COMPANY
FROM: TEXAN TITLE INSURANCE COMPANY UNDERWRITING COUNSEL
RE: USE OF R-18; INSURING PERMANENT CONSTRUCTION LOANS
There is a specific rate rule (R-18) which applies to insuring a permanent construction loan when a LP was issued insuring the interim construction loan. The permanent LP premium will generally be limited to the Basic Minimum which is now $328.00, plus endorsements.
TTIC will not insure a permanent construction loan if we did not insure the interim because we do not want to take the risk of the new LP for only a Basic Minimum premium.
Any deviation from this rule should be approved by your Management.