The New Closing Protection Letter (CPL) Form

Get updated on the Office of Insurance Regulation’s CPL Amendments.

Dear Member,

Closing Protection Letters ("CPL") are an integral part of real estate loan transactions and a standard document required by lenders. The CPL is the undertaking by the underwriter to assume certain liabilities when a loan closing is done through an agent. The form of the CPL, like all other title insurance forms, must be approved by the appropriate agency or department in each state. In Florida, the office with this responsibility is the Office of Insurance Regulation ("OIR").

OIR recently approved amendments to the authorized Florida CPL. The changes clarify the protections afforded under the CPL and make the Florida letter consistent with the coverage afforded elsewhere in the country. The new letter conforms to the American Land Title Association CPL in most respects.

The changes are designed to address potential unintended exposure under the CPL allegedly in excess of the policy or policies being issued. It also refines the time within which a claim under the CPL can be brought. The content of the letter may not be modified in any respect without the prior written approval of OIR.

In about two to three weeks, the CPL you obtain through The Fund will incorporate the changes so that the most current coverage is available via the ATIDS®/Web CPL and the DoubleTime® CPL application. Until this is finalized, the current CPL form should be acceptable to lenders and you do not need to replace any existing CPLs with the new CPL form. Heads up: the new form is three pages.

Please direct any substantive questions regarding this change to me. There should be no changes in the way you request or otherwise obtain a CPL from us.

Here is this week's DoubleTime® FAQ:

FAQ - How do I access the Broker Commission Calculator?

On Page 2 of the Closing Disclosure in the Settlement Statement Module, double click on an available line in section "H. Other" to initiate the Line Detail window. Change the 'Fee Type' in the top left of the window to "Broker Commission Fees". This will automatically initiate the Broker Commission Calculator and allow you to calculate one or multiple commissions.

In the Broker Commission Calculator, you may calculate the commission by entering a 'Percentage' or total 'Amount'. If the commission needs to be split between two brokers, edit the 'Commission' or 'Percent' field in the 1st broker row and it will automatically split the difference for the 2nd broker.

Additional Brokers can be added by clicking the 'Insert' button at the bottom of the calculator window.

Please note that the Broker Commission Calculator must be used in order for the Broker Commission amounts to show correctly on the ALTA Settlement Statement reports.

I hope you have found this information helpful. As always, thank you for your support of The Fund!

Best Regards,

Melissa Jay Murphy
Senior Vice President and
General Counsel