“Standard exception 5” Under Schedule B

[LOGO] SUPERINTENDENT OF INSURANCE John G. Franchini 505-827-4299 NEW MEXICO OFFICE OF SUPERINTENDENT OF INSURANCE DEPUTY SUPERINTENDENT Robert Doucette 505-827-5832 Bulletin 2016-012 May 20, 2016 TO: TITLE INSURANCE LICENSEES RE: "STANDARD EXCEPTION 5" UNDER SCHEDULE B THE FOLLOWING BULLETIN is issued pursuant to NMSA 1978, Section 59A-30-4; Sections 13.1.2.1 to 13.1.2.10 NMAC; Section 13.14.5.9 NMAC; Section 13.14.7.15 NMAC. The purpose of this Bulletin is to advise all New Mexico Title Insurance licensees that a request from a lender to amend the Title Insurance Loan Policy to reflect affirmative coverage language against claims of a non-borrower spouse must be denied as the unauthorized language violates the New Mexico title insurance regulation, Sections 13.14.7.15 and 13.14.5.9(A) NMAC. The deletion of "Standard Exception 5" under Schedule B of the Title Insurance Loan Policy provides coverage under the policy against loss by reason of failure of a non-borrowing spouse to join in the mortgage. But, no Title Insurance licensee shall be allowed to add any language for affirmative coverage against claims of a non-borrower spouse as this constitutes a violation of the New Mexico Title Insurance regulations. See Section 13.14.5.9(A) NMAC. If you have questions regarding this Bulletin, please contact Otis Phillips, Bureau Chief, Title Insurance Bureau at 1-505-827-4930. ISSUED at Santa Fe, New Mexico on May 20th, 2016. John G. Franchini JOHN G. FRANCHINI Superintendent of Insurance Main Phone: 505-827-4601 Main Fax: 505-827-4734 Toll Free: 1-855-4-ASK-OSI Mailing Address: P.O. Box 1689 Santa Fe, NM 87504-1689 Physical Address: 1120 Paseo de Peralta Santa Fe, NM 87501