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.

Contact ALTA at 202-296-3671 or

SoftPro is the nation's leading provider of real estate closing and title insurance software. With more than 14,000 customer sites and over 60,000 users nationwide, this award-winning software offers a suite of products designed to increase your volume and revenue by reducing the time it takes to do closings. SoftPro has been recognized by the American Business Awards every year since 2007 - winning awards for Superior Customer Service, Support and Product Development. North American Title Insurance Company (NATIC) is a seasoned title insurance underwriter, helping title agents to achieve their individual business goals for more than 50 years. Today, the company conducts real estate settlement services in 39 states and the District of Columbia through a network of experienced, independent agents.