The Department of Banking and Insurance approved a request from the New Jersey Land Title Insurance Rating Bureau for an increase in the charge for issuance of a Closing Service Letter (“CSL”) from $25.00 to $75.00. The said increase is going into effect on June 1, 2012, and it applies to all applications for New Jersey Title Insurance received on or after that date.
Why the increase in the CSL, unfortunately it is probably due to major defalcation losses to the NJ Title Insurance underwriters. Two New Jersey Title Insurance underwriters even suspended their operations just last year as a result to massive defalcation related issues.
As a NJ Title Company we have to now charge $75.00 on all transactions in which a CSL is being requested. The only instances in which a CSL would not be used during the closing of a NJ transaction would be:
– Lender does not intend to secure its loan with a mortgage to be insured by a NJ Title Company
-The CSL is requested on behalf of a seller
-There is no title commitment issued in connection with the transaction