Lender Requirements for ALTA Best Practices

To prove compliance with third-party oversight required by the Consumer Financial Protection Bureau (CFPB), several lenders have announced their requirements to prove implementation of ALTA’s “Title Insurance and Settlement Company Best Practices."

ALTA has compiled information it has received to help title and settlement agents understand the various lender expectations. If you are aware of other lender requirements regarding Best Practices, please share the information here on our blog. ALTA will update the list as it receives more information.

ALTA has developed several tools to help title professionals document Best Practice policies and procedures.

Download Chart With Lender Requirements

 

Comments

[Terry Morgan]

Gulf Coast Bank & Trust is asking for ALTA Best Practices 2.0 Certification. What is "2.0"?

[ALTA Blog]

Hello Terry,

Thanks for the question. In July 2013, ALTA updated its “Title Insurance and Settlement Company Best Practices” following many conversations with agents, underwriters, lenders, regulators and other stakeholders. If you look at the Best Practices document (which can be found here: www.alta.org/bestpractices/), you'll see that it's labeled as version 2.0. So, the bank is referencing compliance to this version of Best Practices.

The update included a handful of changes. The most significant change was the removal of the requirement to check employees’ credit reports in the section on escrow accounting and data security best practices. Other changes included simplified insurance requirements and clarification of recording timelines. In addition, language across the seven pillars was modified to make it clearer and more consistent.

Hope this answer helps!

[Oscar]

American Bank & Trust also banned notaries from closing transactions.

[Joe Taylor Owner of Florida Title Solutions, LLC]

Can I please get a copy of the letters that the lenders sent out? The hyperlinks are not working. Thank you.

[Taylor Hewgley of Mid South Title]

Financial Federal Bank in Memphis, TN is requiring 3rd Party Certification.

[Kellie R]

Hi, Raymond James Bank is asking for an ALTA Best Practices certificate that states we are TRID compliant. Have you heard of this? The 7 pillars don't address that.

[Matthew Rekers]

F&M Bank out of Clarksville, TN is requiring ALTA Best Practices Certification in 2017.