Get Ready: Changes to ALTA’s Best Practices and Assessment Procedures
Overview of ALTA Best Practices Changes
In June 2016, the ALTA Board approved the modifications to the ALTA Best Practices and assessment procedures, and also created the Best Practices Maturity Model to help Title Companies measure compliance with the Best Practices.
Below is a brief summary of the changes that were made to the Best Practices:
- Pillar #2 – addressed Automated Clearing House (ACH) transactions and international wire transfers.
- Pillar #3 – clarified requirements associated with maintaining and disposing of non-public personal information.
- Pillar #4 – added standards for engaging third-party signing professionals, such as notaries.
- Pillar #5 – modified the time frame that title insurance agents must report title insurance policies and remit premiums to their underwriters from a 30 to 60-day window, down to a 45-day window.
- Maturity Model – designed to help title insurance and settlement companies determine their level of compliance with the Best Practices based on a benchmark compliance level; Ad Hoc, Planning, Defined, Measured, and Optimized. For any assessment procedure where the title company is not optimized, it will indicate the steps it is taking to improve its compliance within the Progress Plan.
- Assessment Procedures – removed sampling guidance and assessment recap column.
What should title insurance and settlement companies do to comply with the changes made to the ALTA Best Practices? A-LIGN is at the forefront as one of the Elite Providers, and was invited to participate in ALTA’s internal audit committee meetings regarding the changes made to the Best Practices. As one of the first practitioner firms allowed to comment on the proposed changes, A-LIGN is available to assist your organization understand how the changes could affect you. Find out today how A-LIGN’s APEX Best Practices can help your organization.