More Lenders Delay Third-Party Vetting Requirement
December 3, 2012
Amerisave Mortgage Corp. and Generation Mortgage Co. followed announcements by First Tennessee Warehouse Group and Texas Capital Bank postponing requirements that title and settlement companies obtain certification from third-party vetting companies by Jan. 1, 2013 in order to continue receiving business from them.
In a Nov. 20 email, Amerisave indicated the third-party vendor it is using has not been able “to vet a sufficient number of settlement agents to support a smooth implementation of the initiative.”
In a Nov. 15 email to its service providers, Generation Mortgage said its warehouse lender was postponing implementation of its new evaluation process with a third-party company until further notice.
“There have been many developments in the industry and they want to make sure your closings and fundings continue without business interruption,” the company said in the email.
Amerisave and Generation Mortgage indicated they will continue to use their existing in-house settlement agent approval process.
In previous communications, lenders indicated service providers would need to be vetted by a third-party vendor by Jan. 1, 2013 in order to continue receiving orders from them. ALTA CEO Michelle Korsmo previously reported in last month’s special Advocacy Update that the deadline was arbitrary and lenders did not plan to lose business or have deals fall through because a settlement agent wasn’t signed up with a vetting company.
Despite the delay in implementing the vetting requirement, the letters reconfirm lenders’ desire to know more about the companies they work with and a willingness to work with the industry and other organizations to design programs such as best practices, new certifications and more expansive closing protection.
“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,” Korsmo said. “You can be sure our conversations with lenders will continue.”
Click here for more information about ALTA’s best practices.