There are some significant developments concerning some warehouse lenders requiring that title and settlement companies obtain certification from third-party vetting companies. I’ve learned that a couple of lenders have put on hold requirements that title and settlement agents be vetted by January 1 in order to continue receiving business from them.
This development is continued good news and comes on the heels of last month’s special Advocacy Update indicating that the January deadline was arbitrary and warehouse lenders did not plan to lose business or have deals fall through because a settlement agent wasn’t signed up with a vetting company.
The lenders did, however, reconfirm their desire to know more about the companies they work with and a desire to work with the industry and other organizations to design programs like best practices, new certifications and more expansive closing protection. These same warehouse lenders have been looking at possible insurance products that may require agent vetting and there may be changes if such an insurance product comes to market. That is why it continues to be our priority to implement ALTA’s Title Insurance and Settlement Company Best Practices and ensure that title professionals have the tools necessary to meet their clients needs and allow title and settlement agents to continue serving as the vital independent third party to the real estate transaction. You can be sure our conversations with lenders will continue.
We will discuss this development further during a webinar at 2 p.m. ET, Tuesday, Nov. 20. Joining me on the webinar will be ALTA President Frank Pellegrini, of Prairie Title, and ALTA Immediate Past President Chris Abbinante, of Fidelity National Title Group. Part of the discussion will address industry implementation of the ALTA best practices and crucial next steps. Click here to email your RSVP for the webinar. Instructions on how to access the webinar will follow in an auto response to your RSVP.
Please share this important ALTA Advocacy Update with your colleagues. Your comments and questions are always welcome. I can be reached at firstname.lastname@example.org.
Michelle L. Korsmo