TO: ATG Indiana Members

FROM: Jerry T. Gorman

Senior Vice President – Downstate Operations

DATE: August 9, 2006

RE: Title Insurance Enforcement Fund

Dear Indiana Members:

The State of Indiana recently enacted a “Title Insurance Enforcement Fund” that requires title insurers to collect a $5 fee from the purchaser of title insurance. Effective immediately, please charge a five dollar ($5) fee to the party paying for each Owner Policy and a separate five dollar ($5) fee to the party paying for each Mortgagee Policy. Remit the collected fees to ATG along with the policies and the premium.

The Act further provides that the title insurer, “…shall: (1) retain two dollars ($2) of the fee collected … as an administrative fee; and (2) pay to the department three dollars ($3) of the fee collected … for deposit in the title insurance enforcement fund.” P.L. 171-2006, creating the new Indiana Code chapter 27-7-3.6. This fee was effective July 1, 2006.

This charge must be disclosed on the HUD-1 Settlement Statement in the 1100 block as the “State Regulatory Fee.” ATG will remit the appropriate portions of these fees to the State of Indiana.

For transactions closed after July 1, 2006, on which you have not collected the fee, you do not have to try to collect it now. ATG will handle those remittances to the State of Indiana.

As always, we thank you for your business and appreciate your support. Please contact me if you have

any questions, jgorman@atgf.com; 800.252.0402, ext. 2116.

Jerry T. Gorman