Mortgage Market Share Report – May 2013

Effective July 1, 2013 New Indiana Law Requires Closing Protection Letters for All Parties

Senate Bill 370 (P.L. 80-2013), enacted in the most recent legislative session, mandates that Closing Protection Letters (CPL) be provided to all lenders, buyers (or borrowers) and sellers in every transaction closed by a licensed title insurance agent or title insurance underwriter branch office. The effective date of implementation is July 1, 2013.

The legislation also mandated that a fee (premium) be collected for each such letter. The entire fee is paid to the title insurance underwriter issuing the CPL. Title insurance underwriters must have their fee and CPL form approved by the Indiana Department of Insurance (DOI) prior to June 24, 2013. The DOI will only approve the fee if they determine that it is reasonable in light of the risk being assumed by the title insurance underwriter.

I?m sure that many will have questions. I?ve posted a series of questions and answers on our website. You may link to it here. CPL Questions.

As more information becomes available, we will update you.