New Mexico Register / Volume XXIX, Issue 10 / May 29, 2018
This
is an amendment to 13.14.7 NMAC, Sections 22 and 27, effective July 1, 2018
13.14.7.22 LIMITED PRE-FORECLOSURE
TITLE INSURANCE POLICY: A
[foreclosure] limited pre-foreclosure title insurance policy (NM
form 41) and, if desired, a limited pre-foreclosure title insurance policy
down date endorsement (NM form 42) may be issued upon receipt of a bona fide
order from an attorney, trustee, mortgagee or their agent in anticipation of
the filing of an action to judicially foreclose a mortgage, deed of trust or
other lien or security instrument encumbering title to real property in New
Mexico, or to non-judicially foreclose a deed of trust. No binder shall be issued in connection with said
policy. The amount of coverage shall be
equal to the amount of the unpaid principal indebtedness due under the lien or
note secured by the security instrument to be foreclosed. The policy shall be furnished solely for the
purpose of facilitating the filing of the action referred to in schedule A of
the policy. The promulgation of this
form shall not preclude, nor affect, the issuance of a title search and report
by an agent.
[4/3/1995; 13.14.7.22 NMAC - Rn, 13
NMAC 14.7.22, 5/15/2000; A, 7/1/2004; A, 9/15/2010; A, 3/1/2016; A, 7/1/2018]
13.14.7.27 RESIDENTIAL LIMITED COVERAGE
MORTGAGE MODIFICATION POLICY:
A. Upon payment of the premium provided
for in 13.14.9.42 NMAC, a residential limited coverage mortgage modification
policy as described in NM form 90 may be issued in the amount of the
outstanding principal balance of the loan on the date of the policy. The policy may not be issued to increase
coverage if an additional advance is included in the agreement for the
modification of mortgage.
B. This policy shall only be issued on properties that are
defined as “one to four family residential property.”
C. In order to issue a
residential limited coverage modification policy, proof of the previous policy
shall be in the possession of the company issuing the policy prior to the
commencement of the title search for said policy. Proof, as used in this context, shall mean a
copy of the previous policy, which shall include the following
information: issuing
company/underwriter, policy number, date of issue, policy amount, legal
description of insured property, name of insured, as well as complete copies of
schedules A and B (and C, if applicable), and any attached endorsements.
[13.14.7.27 NMAC - N, 3/1/2016; A, 7/1/2018]