ALTA Best Practice #6

ALTA Best Practice #6 is Maintaining the correct professional insurance and fidelity bond coverage.

The correct levels of professional insurance and fidelity coverage allow for companies and settlement companies to maintain the financial capacity to guarantee their professional services.  In some states laws have been created which require a certain level of professional insurance and fidelity coverage, as well as errors or omissions insurance and surety bonds.  This could also be found in some insurance underwriting agreements.

Your agency should keep up to date with all professional liability insurance and errors and omissions insurance

Make sure your company follows state laws and obligations of insurance underwriting agreements by having the correct levels of professional insurance, fidelity coverage, errors and omissions insurance and surety bonds.

Learntitle has worked with Streamline consulting to develop a continuing education course that explains all of the ALTA Best Practices.  Click here to enroll and learn more.

ALTA Best Practice #6

ALTA Best Practice #4 Settlement Processes

ALTA defines the settlement process as:

The process of completing a real estate transaction in accordance with written instructions during which deeds, mortgages, leases and other required instruments are executed and delivered, an accounting between the parties is made, the funds are disbursed and the correct documents are recorded with the appropriate entities.

ALTA Best Practice #4 states:

Adopt standard real estate settlement procedures and policies that help ensure compliance with Federal and State Consumer financial laws as applicable to the settlement process.

The reasoning behind it is:

Creating policies and trainings that are effective and appropriate for employees, helps the company stay up to date with state, federal and contractual obligations governing the settlement.

Agencies have procedures in place and training takes place on an ongoing basis.  In order to be compliant, those informal trainings need to be written down.  If you are ever audited, you need to be able to point to a document that says “This is what we do” and “we did it on these dates”

Learntitle has a course pending that will explain all of the ALTA Best Practices.  As soon as NJDOBI approves it, we’ll let you know.

ALTA Best Practice #4 Settlement Processes

The ALTA® Board of Governors approved recommendations for new forms

The ALTA® Board of Governors approved recommendations to adopt 2 new endorsements and make revisions to 2 closing protection letters and a short form policy during a meeting on February 20, 2014.  -

The current ALTA Closing Protection Letter has been modified to clarify that coverage does not extend to loss arising out of federal consumer protection laws, nor for loss arising out of laws pertaining to securitization, including exemption from credit risk retention.

Tax Credit Endorsements were also added

The current ALTA Closing Protection Letter – Single Transaction (12-1-11) has been modified to clarify that coverage does not extend to loss arising out of federal consumer protection laws, as defined in 12 U.S.C. §5481 (14), the ability to repay, truth-in-lending or other federal or state consumer protection or predatory lending laws, nor for loss arising out of laws pertaining to securitization, including exemption from credit risk retention. – See more at: http://www.alta.org/forms/formsnews.cfm#sthash.8386Tqdc.dpuf

See more here

The ALTA® Board of Governors approved recommendations to adopt 2 new endorsements and make revisions to 2 closing protection letters and a short form policy during a meeting on February 20, 2014.  – See more at: http://www.alta.org/forms/formsnews.cfm#sthash.8386Tqdc.dpuf

The ALTA® Board of Governors approved recommendations for new forms

Help TAN your office and WIN!

From the ALTA Linkedin Group

Group: American Land Title Association – ALTA Subject: Help TAN your office and WIN! During August, the Title Action Network (TAN) is challenging all TAN members to recruit ONE new Title Action Network member this month. Simply encourage your new recruit to visit www.titleactionnetwork.com and click “Join TAN” on the right side of the page. The TAN member who refers the most new TAN members from August 1 to August 31 will win a free 2014 ALTA Federal Conference Registration! Just make sure that your new TAN members type your name into the “who referred you to TAN” field on the entry form. Not a TAN member? Visit www.titleactionnetwork.com and join today to start recruiting! Is your office already at 100% TAN participation? Call an industry colleague and ask them to join today at www.titleactionnetwork.com. We need our entire industry to be involved in promoting the value of the land title industry to legislators and regulators. Recruiting at least one new TAN member this month will help reach that goal! Here are a few points to encourage your colleague(s) to join TAN today: - TAN is free & takes only 90 seconds to join! - TAN promotes the value of the land title industry to state and federal policymakers. - We don’t bog down your inbox & our action alerts are easy-to- understand. - We focus on issues that are important to you and your business. Come TAN with us. Encourage your colleagues to join today at www.titleactionnetwork.com. Posted By Wayne M. Stanley

Help TAN your office and WIN!

ALTA Best Practices Assessments

Implementing changes can be a daunting process.  While many in our industry mean well, they simply do not have the technical knowledge to ensure your title agency or settlement services company is secure. Good news! Cloudstar is here to help you with your ALTA Best Practices implementations.

ALTA Best Practices Assessments | mycloudstar.com.

ALTA Best Practices Assessments

More information about New GSE Legislation

As part of the Title Agent Network, I received this info today:

We wanted you to know that today Senators Bob Corker (R-TN), Mark Warner (D-VA), Mike Johanns (R-NE), Jon Tester (D-MT), Dean Heller (R-NV), Heidi Heitkamp (D-ND), Jerry Moran (R-KS) and Kay Hagan (D-NC) introduced a GSE reform bill that recognizes the value of title insurance. This is great news!

What is GSE reform? GSE (short for government sponsored enterprise) reform aims to fundamentally alter Fannie Mae and Freddie Mac. This is important to the land title industry because Fannie Mae and Freddie Mac currently require title insurance in their service guides. If Fannie/Freddie are replaced, we must ensure standards for title insurance remain in place as a risk-management standard for lenders and consumers.

ALTA’s CEO, Michelle Korsmo released a brief statement today thanking Senators Corker and Warner for recognizing the importance of title insurance in their legislation. Read Michelle’s statement here.

ALTA is working very hard for our members as Congress begins to consider GSE reform, but we will continue to need your help to explain the land title industry to legislators and regulators. Our members continue to be our very best advocates. If you want to learn about ways that you can help locally, please email ALTA’s manager of external communications, Wayne Stanley.

We will continue to pass along important updates on GSE reform as they become available. As always, I can be reached at justin@alta.org if you have any questions.

More information about New GSE Legislation

Senators propose overhaul of housing finance - KXNet - Bismarck/Minot/Williston/Dickinson

This may have significant impact on the title insurance industry.  Fannie and Freddie both require title insurance.  If they go away, whatever takes their place may not.  Hard to imaging that investors would not want their investment insured but it is impossible to predect what our fine legislator might come up with.

Senators propose overhaul of housing finance – KXNet – Bismarck/Minot/Williston/Dickinson.

Here is ALTA’s reaction:

American Land Title Association Statement on

Corker/Warner GSE Reform Bill Introduction

Senators propose overhaul of housing finance - KXNet - Bismarck/Minot/Williston/Dickinson

The Consumer Mortgage Choice Act (H.R. 1077) reintroduced

This is an interesting discussion over on Linkedin in the American Land Title Association Group.

The Act provides for exclusion of fees charged by creditor’s affiliates from the 3% Dodd-Frank “points and fees” threshold used to determine which loans qualify as Qualified Mortgages (QMs).

Check it out

The Consumer Mortgage Choice Act (H.R. 1077) reintroduced

ALTA President available for Comment on Fiscal Cliff

For Immediate Release                                            

 

 

American Land Title Association President Available for Comment on

 

Fiscal Cliff Discussions and Mortgage Interest Deduction

 

 

 

 

Washington, D.C., December 3, 2012 — American Land Title Association President Frank Pellegrini will be available from 2 p.m. to 4 p.m. Eastern on Tuesday, December 4, to discuss the fiscal cliff and how the effects of sweeping changes in the tax code, including potential modification or exclusion of the mortgage interest deduction, would slow a housing recovery and make buying a home more expensive for first-time buyers.

 

 

 

To schedule an interview, please contact Wayne Stanley at 202-261-2932 or wayne@alta.org. Interviews will be scheduled on a first come, first serve basis.

 

 

 

 

###

 

 

 

About ALTA

 

 

 

The American Land Title Association, founded in 1907, is a national trade association representing more than 4,000 title insurance companies, title agents, independent abstracters, title searchers, and attorneys. ALTA members conduct title searches, examinations, closings, and issue title insurance that protects real property owners and mortgage lenders against losses from defects in titles.

 

 

 

 

 

Wayne Stanley

 

Manager of External Communications

 

American Land Title Association

 

202-261-2932 | wstanley@alta.org

 

        

 

 

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ALTA President available for Comment on Fiscal Cliff

For Immediate Release                                            

 

American Land Title Association President Available for Comment on

Fiscal Cliff Discussions and Mortgage Interest Deduction

 

 

Washington, D.C., December 3, 2012 — American Land Title Association President Frank Pellegrini will be available from 2 p.m. to 4 p.m. Eastern on Tuesday, December 4, to discuss the fiscal cliff and how the effects of sweeping changes in the tax code, including potential modification or exclusion of the mortgage interest deduction, would slow a housing recovery and make buying a home more expensive for first-time buyers.

 

To schedule an interview, please contact Wayne Stanley at 202-261-2932 or wayne@alta.org. Interviews will be scheduled on a first come, first serve basis.

 

 

###

 

About ALTA

 

The American Land Title Association, founded in 1907, is a national trade association representing more than 4,000 title insurance companies, title agents, independent abstracters, title searchers, and attorneys. ALTA members conduct title searches, examinations, closings, and issue title insurance that protects real property owners and mortgage lenders against losses from defects in titles.

 

 

Wayne Stanley

Manager of External Communications

American Land Title Association

202-261-2932 | wstanley@alta.org

        

 

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ALTA Update by Michelle Korsmo

Housing Policy & Data -  The average rate on the 30-year fixed-rate mortgage dropped to a record low of 3.84 percent, down from 3.88% last week.  Rates on the 15-year fixed-rate mortgage dropped to 3.07 percent from 3.12 percent last week.
A report released by home-listings company Trulia said that strengthening asking prices for homes point to higher sales prices as early as June, which would be a welcome turn for the housing market.  Asking prices nationally were 0.5% higher in April than in March and similarly rose 1.9% over the quarter.  In fact, asking prices increased year-over-year in 44 out of the 100 largest metropolitan areas.
Among renters who plan to purchase a home in the future, 60 percent have increased their intent to do so compared to 12 months ago, according to the recent PulteGroup Home Index survey.  Among this same group, 61 percent stated they intend to purchase a home within the next two years.  The survey showed that there are still obstacles that prevent renters from purchasing homes, such as high down payments and the belief that renting is cheaper than buying a home.

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ALTA: Title Insurance Premiums Hit $9.47 Billion in 2011 | Mortgage News | Daily National and State Headlines

ALTA: Title Insurance Premiums Hit $9.47 Billion in 2011 Wed, 2012-03-21 16:54 — NationalMortgag...

The American Land Title Association (ALTA) has reported that title insurance premiums written during 2011 decreased slightly when compared to the previous year. According to ALTA's preliminary 2011 Year-end and Fourth-Quarter Market Share Analysis, the title insurance industry generated $9.47 billion in title insurance premiums in 2011, down 1.5 percent from 2010. During Q4 of 2011, the industry reported $2.57 billion in title insurance premiums, down 6.5 percent from the same period in 2010.

The states generating the most title insurance premiums during 2011 were California ($1.33 billion, down 5.3 percent compared to 2010), Texas ($1.15 billion, up 8.5 percent), New York ($719.5 million, up 8.3 percent), Florida ($718.6 million, up 1.8 percent) and Pennsylvania ($410.0 million, down 4.5 percent). Overall, 15 states and the District of Columbia reported increases in title insurance premiums written during 2011 when compared to 2010.

During the fourth quarter of 2011, 10 states and the District of Columbia reported increases in title insurance premium written compared to Q4 of 2010. Among the 10 states with the largest volume of title insurance premium written, Illinois reported a 29 percent increase compared to the fourth quarter of 2010.

In terms of market share, the Fidelity Family of title insurance underwriters captured 34.7 percent of the market in 2011, the First American Family garnered 26.8 percent, the Stewart Family had 13.7 percent and the Old Republic Family recorded 13 percent. Meanwhile, independent companies comprised 11.8 percent of the market in 2011.

via nationalmortgageprofessional.com Title Insurance Industry Free Classifieds
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From ALTA Advocacy Update by Michelle Korsmo, ALTA CEO (1/17/12) | Property Records Education Partners (PREP)

Housing Policy & Data
Rates for 30-year fixed-rate conventional mortgages fell 2 basis points to a new record low of 3.89% last week.  The latest Beige Book from the Federal Reserve Banks continues to show a growing economic recovery led by consumer spending. However, the news was not all bright, as continued weakness in the housing market holds back a  robust economic recovery. In the latest round in the Federal Reserve’s push for a broader mortgage refinancing program, a new study from the Federal Reserve Bank of New York shows that the economic benefit of home-loan refinancing to consumers far exceeds the effect of lost returns to investors who provide the residential financing. In the paper, the New York Fed argues that government or foreign investor (who own about 47% of securities backed by residential mortgages) spending on U.S. goods and services doesn’t depend “to any significant degree” on the income from their bonds. Meanwhile, another 8.3% of MBS are held by insurance and pension funds whose spending would spread out over a long period of time. However for distressed homeowners, 50 cents of every dollar saved in a mortgage payment is recycled back through the economy as additional spending.

In December banks filed their lowest number of foreclosures since November 2007. Foreclosures were down 35% in 2011, due to  significant delays related to documentation and legal issues. However, these low numbers may only be temporary since there is a backlog of 3.5 million seriously delinquent mortgages. If banks get more aggressive on foreclosures, it could have a further dampening effect on home values. Analysts continue to get more bullish on home builders as evidence points to a resurgence in new construction in 2012. On Wednesday, Lennar Corp. reported that its fourth-quarter orders surged 20% from a year earlier, far surpassing analysts’ expectations. (Some analysts admitted they thought orders would decline.) Meanwhile, the latest National Association of Home Builders/First American Improving Markets Index shows that the number of areas showing improving market conditions jumped to 76 in January, up from 41 a month earlier. Could the market’s appetite for private label mortgage securities be returning? Redwood Trust Inc., the only company to issue so-called private label mortgage bonds since the housing market collapsed three years ago, sure hopes so as it prepares for its fourth such deal since 2008. The new issue of at least $405 million is larger than the two it sold in 2011. The market for privately issued residential mortgage-backed securities, which during the boom funded most of the U.S. housing market, has shrunk to $1.1 trillion outstanding from $2.4 trillion in 2007. Despite extremely stringent underwriting criteria (the mortgages have an average loan-to-value ratio of 62.8%, and average credit scores of 770), Redwood is adding large credit enhancements to warrant the necessary AAA rating.

via prepchapters.org

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American Land Title Association Market Share Analysis Shows Industry Improvement

WASHINGTON--(BUSINESS WIRE)--

The first quarter of 2011 showed improvement for the title insurance industry, according to the American Land Title Association's (ALTA) First-Quarter Market Share Analysis.

“The industry remains in a strong financial position as operating loss for the industry decreased to $11 million in the first quarter of 2011, compared to a loss of $124 million in the first quarter of 2010,” said Kurt Pfotenhauer, Chief Executive Officer of ALTA. “Meanwhile, the industry has $8.3 million in admitted assets and more than $4.75 million in statutory reserves.”

According to the Market Share Analysis, first-quarter 2011 title insurance premiums increased 8.7 percent compared to the same period in 2010 and are up 13.4 percent compared to the first quarter of 2009.

“After 13 consecutive quarters in which title premiums Written declined from the prior year's equivalent quarter, the third quarter of 2009 ended this string with an increase of 1.4 percent over third quarter of 2008,” Pfotenhauer said. “Since then, quarterly premiums written have fluctuated up and down in no discernible pattern.”

The states generating the most title insurance premiums during the first quarter of 2011 were California ($307 million, up 2 percent compared to the first quarter of 2010), Texas ($246 million, up 22.2 percent), New York ($165 million, up 17.7 percent), Florida ($159 million, up 6 percent) and Pennsylvania ($110 million, up 25.3 percent). Overall, 41 states and the District of Columbia reported increases in title insurance premiums written during the first three months of 2011 when compared to the same period in 2010. Alaska, Kansas and West Virginia all experienced more than a 30 percent jump in title insurance premiums written during the first quarter of 2011 versus the first quarter of 2010.

In terms of market share, the Fidelity Family of title insurance underwriters captured 33.7 percent of the market during the first quarter of 2011, while the First American Family garnered 27.7 percent, the Old Republic Family recorded 13.5 percent and the Stewart Family had 12.5 percent. Meanwhile, regional underwriters held 12.6 percent of the market during the first quarter of 2011, up from 10.7 percent market share during the same period a year ago.

ALTA expects to release its second-quarter 2011 Market Share Analysis around Sept. 1. Click here to view the complete First-Quarter 2011 Market Share Analysis.

About ALTA

The American Land Title Association, founded in 1907, is a national trade association representing more than 3,800 title insurance companies, title agents, independent abstracters, title searchers, and attorneys. With offices throughout the United States, ALTA members conduct title searches, examinations, closings, and issue title insurance that protects real property owners and mortgage lenders against losses from defects in titles.

American Land Title Association
Jeremy Yohe, 202-261-2938
Cell: 202-590-8361
jyohe@alta.org

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American Land Title Association Supports Federal Regulators’ Extension of Comment Period for Qualified Residential Mortgage | Business Wire

June 06, 2011 06:28 PM Eastern Daylight Time 

WASHINGTON--(BUSINESS WIRE)--The American Land Title Association (ALTA), the national trade association of the land title insurance industry, announced its support of federal regulators’ decision to extend the comment period for the Risk Retention and Qualified Residential Mortgage (QRM) provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank). The deadline to submit public comments on the QRM was to expire June 10.

“ALTA strongly encourages regulators to protect consumers and investors by drafting a QRM that does not unnecessarily restrict credit and transfers legal title risks to state regulated insurance companies”

“ALTA strongly encourages regulators to protect consumers and investors by drafting a QRM that does not unnecessarily restrict credit and transfers legal title risks to state regulated insurance companies,” said Kurt Pfotenhauer, Chief Executive Officer of ALTA. “Investors and consumers deserve a gold standard that includes protection of their legal right to the property. Due to the complexity of the proposed rule and its interconnections with other rules still being developed by regulators, this extension is appropriate. Once we have the opportunity to understand how this rule will work in the new scheme required under last year’s financial overhaul, we will better be able to provide regulators with the necessary commentary to avoid any unintended consequences which could ultimately harm consumers and investors.”

A portion of the Dodd–Frank Act sets out a new requirement that forces lenders to retain 5 percent risk for any loans they sell on the secondary market. Exempted from the act’s risk-retention requirements, however, are mortgage-backed securities composed entirely of certain high-quality, lower-risk QRMs. Proposed rules would require future homebuyers to put down at least 20 percent of the purchase price of a home and meet strict income requirements to qualify for the loan with the lowest interest rates.

ALTA joined 11 other trade associations warning federal regulators in a whitepaper that the proposed QRM definition will harm many creditworthy borrowers while hampering the housing recovery. Congress rejected establishing high minimum down payments because they are not a significant factor in reducing defaults compared to other underwriting and product features. The three sponsors of the QRM provision, Senators Landrieu, Hagan and Isakson, sent letter to the regulators saying they specifically rejected a minimum down payment standard for the QRM. The letter was signed by 160 members of Congress, including 40 Senators.

The justification of qualified residential mortgages is to generate a finance structure that encourages responsible lending and borrowing. However, ALTA believes that the proposed regulation misses the mark because it does not require lenders to undertake common-sense underwriting steps to identify and establish who possesses the legal right to the property.

“Underwriting the real property that will serve as collateral for the mortgage loan is a fundamental part of the underwriting process and can be achieved by utilizing a title search backed by a title insurance policy to investigate, identify, and analyze the state of title to the collateral, thus reducing risk of loss for investors,” Pfotenhauer said.

About ALTA

The American Land Title Association, founded in 1907, is a national trade association representing more than 3,800 title insurance companies, title agents, independent abstracters, title searchers, and attorneys. With offices throughout the United States, ALTA members conduct title searches, examinations, closings, and issue title insurance that protects real property owners and mortgage lenders against losses from defects in titles.

via businesswire.com

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American Land Title Association Names Anastasi as President

WASHINGTON--(BUSINESS WIRE)--The American Land Title Association (ALTA) announced that veteran land title insurance industry professional Anne L. Anastasi has been named president for the 2010-2011 year.

“Anne is as passionate and articulate a spokesperson for the title industry as you could ever hope to find, but she also has other qualities such as the ability to listen and great judgment, that will distinguish her leadership”

Anastasi is president of Hatboro, Pa.-based Genesis Abstract, LLC. Prior to opening her own company in 1994, she served as vice president of a regional land title insurance underwriter. In 1999, Anastasi served as the first female president in the 80-year history of the Pennsylvania Land Title Association.

"I am honored to serve ALTA as its president, especially at this time,” Anastasi said. "The importance of title insurance in assuring property rights has been amplified with the recent foreclosure issues stemming from lending processing errors. This has afforded us a great teaching opportunity to explain the repairing and closing process so that people purchasing a home or those refinancing their mortgages will understand that title insurance is not just a product but a valuable process that protects their investment.”

Anastasi is a renowned national speaker, covering topics such as title insurance, customer service, sales and motivation. She has been the keynote speaker at 46 title industry state conventions and has addressed audiences for ALTA, Real Estate Services Providers Council (RESPRO), bar associations and mortgage bankers.

“Anne is as passionate and articulate a spokesperson for the title industry as you could ever hope to find, but she also has other qualities such as the ability to listen and great judgment, that will distinguish her leadership,” said Kurt Pfotenhauer, chief executive officer of ALTA. “Given the challenges facing the title industry, we are blessed to have a leader of such quality."

via businesswire.com

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(ALTA) announces second-quarter Market Share Analysis

Washington, D.C., Sept. 23, 2010 — The American Land Title Association (ALTA) announces that its second-quarter Market Share Analysis is now final. ALTA released preliminary results on Sept. 2.

The second quarter of 2010 proved to be profitable for the industry. Operating Income was down 9 percent from the second quarter of 2009 and Loss Expense was up by 12.7 percent, but these were offset by a decrease in Operating Expense of $248 million (10.6 percent), leaving Operating Loss at the same level as 2009. Net Investment Gain was 45 percent less than 2009, leaving Net Income 56 percent lower than the second quarter of 2009, but still positive at $48.3 million.

Consequently, the industry remains in a strong financial position at June 30, with Admitted Assets of over $8.5 billion, including over $7.4 billion in Cash and Invested Assets. Also, Statutory Reserves were almost $5 billion and Statutory Surplus exceeded $2.4 billion.

The second quarter of 2010 ends a string of three consecutive quarters in which Title Premiums Written increased over the prior year’s equivalent quarter, reporting a decline of 8.5 percent compared to the second quarter of 2009. Notable in the second quarter are changes in title insurance underwriter family market share. The Fidelity Family leads the industry with 38.4 percent of the national market, up 1.4 percent from the first quarter. Meanwhile, First American declined 1.7 percent to 26.6 percent, Stewart increased 1 percent to 14.7 percent. Old Republic decreased .1 percent to 10.4 percent and regional companies decreased by .8 percent to 9.9 percent.

ALTA expects to release preliminary third-quarter Market Share Analysis around Dec. 1.

Posted via email from Title Insurance