Current versions of the generic New Jersey Commitment Letter contain the following language, found on page 2 of the letter:
“Please note that a binder is unacceptable and the insurance carrier must have a Bests policyholder’s rate of at least ‘B/VI’ to be acceptable by us.”
This sentence is now being altered to state the following:
“Please note that an insurance carrier must have an A.M. Best Company Financial Strength Rating of at least ‘B’ to be acceptable by us.”
This alteration is being made due both to the fact that insurance binders may or may not be acceptable to different lenders and that FNMA guidelines require insurance carriers to have an A.M. Best Company Financial Strength Rating of ‘B’ or better (see FNMA 2012 Selling Guide B7-3-01).
This change will take effect on May 1, 2012. If you have any questions or concerns about this change, please contact Client Support at 1.800.497.3584.
April 24, 2012