Closing Protection Letters in Missouri

Overview

Closing Protection Letters are mandatory in Missouri for any insured transaction. They can only be issued on behalf of the agent insuring the title which prevents the issuance of dual CPLs unless one agent is handling a loan policy and the other is handling an owner's policy for the same transaction, which is quite common. There is one form for the lender and/or buyer and a second form for any seller. The fee for each letter is $25. There is no CPL for borrowers, so a refinance CPL would only be issued the lender.

Sources

• Statutes
• Regulations

NOTE: There are statutes and regulations that govern "Insured Closing Letters" (ICLs) which are considered separate and distinct from Closing Protection Letters (CPLs) under Missouri law even though these terms are now synonymous in most states. Although related, ICLs and CPLs are not governed by the same rules in Missouri. An ICL is more akin to a blanket CPL and is not transaction specific.

Compliance

381.403

Forms

CPL Form

• Latest CPL Form Filing Date: 09-01-2015
• Filing Requirements: (rate & form to be filed)
• Current From: 3172529, 3172429
• ALTA Version:

Dual Agent CPLs

There are two situations in which a dual CPL might be requested for a transaction:

• The transaction is a "split closing" where one title insurance agent is insuring the owner and another title insurance agent is insuring the lender. This can only be done if both agents are issuing policies from the same underwriter. Split closings are fairly common in Missouri, although typically each agent will be using a different underwriter for their policies. As a result, dual CPLs in this instance are fairly rare.
• The transaction is being handled primarily by one title insurance agent for work referred to it by an out of state title agent that is not licensed in Missouri. In this case a dual CPL is not available. Although not expressly prohibited, Missouri requires that the only agent that can handle the closing is the one that is also issuing the commitment and policy. MO Rev Stat § 381.022.5. This requirement prohibits a non-licensed agent from participating in the transaction in any capacity, thereby preventing the non-licensed agent from being listed on the CPL.

Rates

State Mandated Rates

• Buyer:
• Seller:
• Lender:
• Borrower:

WFG Rates

• Buyer: $25.00.
• Seller: $25.00.
• Lender: $25.00.
• Borrower: Not available, so no rate field.

Notes

• Notes:
• Rate Checked: 05-17-2016
• By: Sam Shellhaas
• Manual Date:

Cross-References

• Closing Protection Letters
• Insured Closing Letters
• Missouri
  • Insured Closing Letters in Missouri