ALTA Best Practices 
 
The recent publication of the ALTA Best Practices Framework 4.0 by the American Land Title Association is a major revision to industry standards with an effective date of May 23, 2023. This course will provide valuable information on how agents and direct offices can understand and implement procedures needed to comply. 
 
As the ALTA Best Practices Framework: Title Insurance and Settlement Best Practices document (often referred to as “The Framework”) is the guiding document for agents and direct operations to both optimize and improve their business, these revisions have been made with the specific objective of allowing agents and direct operations to continually improve their practices and procedures to ensure financial, data security and operational stability, and to provide lenders and other constituents with the assurances that their needs are being fulfilled by these efforts.
 
Though not reflecting the full extent of the proposed changes, the revisions that have received significant areas of attention include:
 
• Pillar 2 (Escrow Accounting): Updates to the treatment of non-settled funds and outstanding file balances, use and treatment of fintech applications, escrow funds training, use of the ALTA Outgoing Wire Preparation Checklist, and the use of wire verification services.
 
• Pillar 3 (Privacy and Information Security Programs to protect NPI):  Updates to the physical protection of NPI, inclusion of network and cloud security of NPI, further details on coverage of  business continuity and disaster recovery plans, further details on the required oversight of service providers and third party systems, use of the ALTA Cybersecurity Incident Response Plan Template as a reference document for the written incident response plan, and requiring processes for addressing breaches or unauthorized access to NPI.
 
• Pillar 4 (Settlement): Updates include establishing “consumer objectives” for the training of staff, disclosure of Affiliated Business Arrangements, establishment and implementation of procedures related to closing documents, requirements for internal and external signing professionals, selection of Remote Notarization Platforms, standards for recording procedures, and compliance with Pillar 2 for procedures and controls for recording fees and any applicable taxes.
 
As part of this revision, ALTA has also published the following ALTA Best Practices Framework documents: (1) The Best Practices Assessment Procedures, (2) the Internal Assessment Report and Letter, and (3) the Third-Party Assessment Report. 
 
Presenters: 
Craig Haskins | Chief Operating Officer | Knight Barry Title
Tara Smith | President, Agency Services | Stewart Title Guaranty Co.