Real Estate News

New ALTA supplements look to help best title practices

Published: 25 Apr 2017

Given the complex nature of title insurance, it's understandable that companies would need a set of standards to follow to stay aligned. Potential homeowners could stand to benefit as well, which is why both sides may need to pay attention to the new announcement from the American Land Title Association.

This statement, from April 6, said that the organization is adding onto its original best practices for title and settlement companies. As a result, the latest additions reportedly give more scope to current guidelines and could be seen as a way to direct the path forward.

Back in October, ALTA had released Version 2.5 of its best practices, and title professionals could look to this earlier document before they concerned themselves with the new one. That called for such efforts as upholding information security, ensuring consumer law compliance on both the Federal and State level alongside liability insurance. Many of the points involved keeping certain procedures ongoing, such as complaint management.

ALTA CEO Michelle Korsmo, touted the importance of the Best Practices to the industry in an official statement.

"ALTA's Best Practices is the clear choice among title and settlement companies to help develop policies and procedures that protect consumers, promote quality service, provide for ongoing employee training, and meet legal and market requirements," she said "The Best Practices also have become the blueprint used by many lenders to meet third-party vendor management regulatory requirements."

Putting more focus on strong practices could mean a better prelude to embracing technology, such as remote notarization. Earlier this year, ALTA also addressed this same topic in a letter to the National Association of Secretaries of State. If the current standards continue to be influential, it might position the organization even more as a guiding force.