Question:  We received a bulletin from a title company about a change to interim construction binders.  What is the impact on interim lending?

Answer:  Get a mortgagee policy UNLESS you are financing a spec house for the builder.

Mortgagee policies can't be transferred.  However, if a different lender is handling the permanent financing, Procedural Rule 18 provides important relief.  The permanent lender can get a new mortgagee policy issued for $237 (the current minimum premium).  If the permanent loan is for an amount greater than the interim loan (not likely), the premium is the greater of $237 or the difference between the interim mortgagee policy premium and the premium for the greater amount.