The American Land Title Association (ALTA)’s recently released changes to its Title and Settlement Company Best Practices and maturity model’s public comment period will come to close on Friday. Anyone still wishing to comment should email [email protected].
ALTA tweaks Best Practices, adds Maturity Model
Changes to the Best Practices included:
- Pillar 2: The language requiring the use of positive pay, reverse positive pay, Automatic Clearing House transactions and international wire transfers was modified.
- Pillar 3: Changes clarify requirements associated with maintaining and disposing of non-public personal information (NPI).
- Pillar 4: Standards have been added for engaging third-party signing professionals.
- Pillar 5: Changes modify the time frame that title insurance agents must report title insurance policies and remit premiums to their underwriters to a flat 45 days after the conditions of the commitment were satisfied.
ALTA’s maturity model includes five compliance categories. Ad Hoc is the lowest, meaning the company has not yet established any policies or procedures. Planning is second and means the company is developing compliance. It has either established, but not yet implemented, written policies and procedures, or it follows policies and procedures, but has not yet written them in a manual. Defined is third and means the company is partially compliant with Best Practices. Managed means the company is substantially compliant. Optimized is the highest and means the company is fully compliant with ALTA Best Practices.
ALTA’s new maturity model deemed ‘useful tool’ by industry
After the period ends and the comments have been considered, the changes will be finalized and become effective Oct. 7, 2016. Companies may implement changes immediately. Anyone with questions should email ALTA’s Associate Legislative and Regulatory Counsel Ashley Sadler at [email protected].