separate from the pack by implementing alta’s best practices · 2016. 10. 25. · 2012 tipac...

Separate from the Pack by

Implementing ALTA’s Best Practices

Members Can Utilize Guidelines to

Demonstrate Professionalism and Differentiate Themselves in the Marketplace

February 2013Official Publication of the American Land Title Association

March 13-15, 2013Renaissance OKcOklahoma City, Oklahoma

Learn How to integrate aLTa’s Best Practices into Your OperationAttend the 2013 Business Strategies Conference and learn how to implement the different aspects of the Best Practices. Doing so may drive more business your way!

For details on the professional development sessions dedicated to best-practice implementation and to register, scan this QR code or go to www.alta.org/meetings/businessstrategies

www.alta.org > February 2013 > TitleNews 3

FeaturesDepartments17

RUNNING YOUR BUSINESS

Best Practice: Procedures and Controls for Escrow Trust Accounts Appropriate and Effective Controls and Staff Training Help Meet Client and Legal Requirements for Safeguarding Escrow Funds

20INSIDE ALTA

Learn How to Implement ALTA’s Best Practices at 2013 Business Strategies ConferenceSeveral Professional Development Sessions Dedicated to Providing Tips on Integrating Best Practices Into Business Processes

22RUNNING YOUR BUSINESS

CFPB Defines Qualified Mortgage, Issues Ability-to-Repay RuleMany Don’t Believe Rule Will Be a Game Changer, But One Provision Could Impact Affiliated Businesses

24PEOPLE ON THE MOVE

Title Veteran Values Mentoring, Providing Career Path for EmployeesAmy Kaspar Retires After 38 Years in Industry

10COVER STORY

Separate from the Pack by Implementing ALTA’s Best PracticesBy Jeremy Yohe

Members Can Utilize Guidelines to Demonstrate Professionalism and Differentiate Themselves in the Marketplace

TitleNews • Volume 92, Number 2

5From the Publisher’s Desk

7ALTA News

26Industry News

292012 TIPAC Contributors

34The Last Word

4 TitleNews > February 2013 > www.alta.org

PUBLISHERMichelle L. Korsmo

EDITOR IN CHIEFJeremy Yohe

COMMUNICATIONS MANAGER

Shawn Sullivan

ASSOCIATION OFFICERS ASSOCIATION EXECUTIVE STAFF

Members Call Toll Free: 800-787-ALTA • Members Fax Toll Free: 888-FAX-ALTAVisit ALTA Home Page: www.alta.org • Email Feedback to: [email protected]

TitleNews is published monthly by the American Land Title Association. United States and Canadian subscription rates are $30 a year (member rate); $100 a year (non-member rate). For subscription information, call 800-787-ALTA.

Send address changes to TitleNews, American Land Title Association, 1828 L Street, N.W., Suite 705, Washington, D.C. 20036.

Anyone is invited to contribute articles, reports, and photographs concerning issues of the title industry. The Association, how-ever, reserves the right to edit all material submitted. Editorials and articles are not statements of Association policy and do not necessarily reflect the opinions of the editor or the Association.

Reprints: Apply to the editor for permission to reprint any part of the magazine. Articles reprinted with permission must carry the fol-lowing credit line: “Reprinted from TitleNews, the monthly magazine of the American Land Title Association.”

©2013 American Land Title Association

calendarPRESIDENT Frank Pellegrini Prairie Title, Inc. Oak Park, IL

PRESIDENT-ELECT Robert Chapman Old Republic National Title Insurance Co. Minneapolis, MN

TREASURER Peter J. Birnbaum Attorneys’ Title Guaranty Fund, Inc. Chicago, IL

CHAIR, FINANCE COMMITTEE Daniel D. Mennenoh H.B. Wilkinson Title Co. Galena, IL

CHAIR, TITLE INSURANCE UNDERWRITERS SECTION John Hollenbeck First American Title Insurance Co. Santa Ana, CA

BOARD REPRESENTATIVES, TITLE INSURANCE UNDERWRITERS SECTION Steven Day Fidelity National Title Group Jacksonville, FL

Stewart Morris Jr. Stewart Information Services Corp. Houston, TX

CHAIR, ABSTRACTERS AND TITLE INSURANCE AGENTS SECTION Diane Evans Land Title Guarantee Co. Denver, CO

BOARD REPRESENTATIVES, ABSTRACTERS AND TITLE AGENTS SECTION William Burding Orange Coast Title Family of Companies Santa Ana, CA

Herschel Beard Marshall County Abstract Co. Madill, OK

IMMEDIATE PAST PRESIDENT Christopher Abbinante Fidelity National Title Group Jacksonville, FL

CHIEF EXECUTIVE OFFICER Michelle L. Korsmo

VICE PRESIDENT OF GOVERNMENT AFFAIRS Justin Ailes

VICE PRESIDENT Cornelia Horner, CMP

VICE PRESIDENT Kelly Romeo, CAE

DIRECTOR OF COMMUNICATIONS Jeremy Yohe

ALTA CONFERENCES

March 13 2013 Agents Forum Oklahoma City, OK

March 13-15 2013 Business Strategies Conference Oklahoma City, OK

May 6 - 8 2013 Federal Conference Washington, DC

October 9-12 2013 Annual Convention Palm Beach, FL

BEST PRACTICES MEETINGS

February 11 Alabama Birmingham, AL

February 15 Alaska Girdwood, AK

February 19 Nevada Reno, NV

March 4 Maryland Linthicum Heights, MD

March 5 Indiana TBA

March 5 Wyoming webinar

March 7 Washington, DC Friendship Heights, MD

March 7 Idaho Boise, ID

STATE MEETINGS

February 14 - 16 Alaska Girdwood, AK

April 3 - 4 Tennessee Nashville, TN

April 9 (tentative) South Carolina (Palmetto Land Title) Columbia, SC

April 11 - 13 Oklahoma Tulsa, OK

April 28 - 30 California Half Moon Bay, CA

May 2 - 4 New Mexico Santa Ana Pueblo, NM

May 3 - 4 Iowa Altoona, IA

calendar


from the publisher’s desk

- Michelle Korsmo, ALTA chief executive officer

A good book is a thing of joy. Because I have young children, my reading list is largely children’s stories (I recommend “Ozma of Oz”). But, I do manage to get through a regular rotation of business books.

Jimmy Jones, president and CEO of Attorneys’ Title Fund Services, recently sent me Peter Gruber’s book, “Tell to Win: Connect, Persuade, and Triumph with the Hidden Power of Story.” I am grateful Jimmy shared Gruber’s book with me. As an entertainer, Gruber, the former chairman of Sony Pictures and current CEO of Mandalay Entertainment Group, has a great message of how telling authentic stories helps create a bond with the audience that leaves them feeling connected and confident in the relationship, and ultimately receptive to the message.

In “Tell to Win,” Gruber talks about how making your point by telling a story, you are very effective in connecting with others and persuading them to your point of view. His message urges moving past the PowerPoint slides, facts and figures to create focused stories that can serve as powerful calls to action. To do this, Gruber says to:

• Capture your audience’s attention first, fast and foremost.• Motivate your listeners by demonstrating authenticity.• Build your story around “what’s in it for them.”• Change passive listeners into active participants.• Use “state-of-the-heart” technology online and offline to make sure audience commitment remains strong.Reading the book made me think about how we need to do a better job of telling our story and

explaining to lenders the procedures ALTA members follow to protect escrow funds and consumer information.

Gruber’s philosophy can be applied to telling the industry’s story to consumers, legislators and regulators. While ALTA’s lobbying team can help members of Congress and their staff understand the title industry, only you—ALTA members—can make them care about the title industry. Armed with effective storytelling, you can move mountains.

Work on how you tell your story. Through effective storytelling you can get an elected official, regulator, lender, real estate agent, or consumer to understand how your business provides a valuable and necessary benefit to consumers and our communities.

It’s Time for the Land Title Insurance Industry to ‘Tell to Win’

Best PracticeBlues?

The American Land Title Association recently pub-lished Best Practice guidelines illustrating seven critical areas that enable title and settlement agents to demonstrate the assurances that lenders and reg-ulators require and eliminate the need for third party vetting services. Overwhelmed? Don’t be. You likely have some of the areas covered already and for the rest, there’s op2. When it comes to ensuring that you have the tools you need to provide a positive and compliant real estate settlement experience, op2 has you covered.

op2 helps eliminate Best Practice blues. Call 888-746-0023.

VET FRET NO MORE!

Haven’t seen ALTA’s Title Insurance and Settlement Com-pany Best Practices? Scan this QR code with your smart phone or visit alta.org/bestpractices/ to review them now!


ALTA news

With Congress passing and President Obama signing into law H.R. 8 (American Taxpayer Relief Act of 2012) to avert the so-called “fiscal cliff,” there are several provisions of the legislation that impact housing that ALTA members should know about.

The centerpiece of the measure permanently extends current income and capital gains tax rates for taxpayers with taxable income of up to $400,000 for individuals and up to $450,000 for couples. For individuals earning less than $400,000 and married couples filing jointly with less than $450,000, marginal tax rates will stay the same as they have been over the last few years. Here’s a look at key tax provisions included in the legislation: • Mortgage Cancellation

Relief: One-year extension of the Mortgage Debt Forgiveness Act. This

should help keep short sale, foreclosure and deed-in-lieu transactions moving. ALTA sent a letter to members of Congress on Dec. 12 urging for this extension.

• Mortgage Insurance Premiums: Itemized deduction for premiums paid for FHA or private mortgage insurance for filers making below $110,000.

• Leasehold Improvements: 15-year straight-line cost recovery for qualified leasehold improvements on commercial properties.

• Energy Efficiency Tax Credit: The 10 percent tax credit (up to $500) for homeowners for energy improvements to existing homes.

• Limits on Itemized Deductions: Rules limiting the value of itemized deductions (Pease Limitations) were permanently repealed for

most taxpayers but will be reinstituted for individuals earning above $250,000 adjusted gross income and couples earning more than $300,000.

• Capital Gains: The capital gains rate increased to 20 percent.

• Estate Tax: The estate tax is now subject to a $5-million exemption in individual estates ($10 million for family estates) with a tax rate of 40 percent (up from 35 percent). Additionally, here’s a look at how the legislation will impact payrolls in 2013:

• Income Tax Withholding Rates: The American Taxpayer Relief Act effectively maintains the reduced income tax rates adopted in 2001 and 2003 for individuals earning up to $400,000 and families earning less than $450,000. Income above

those levels will be taxed at 39.6 percent, up from 35 percent. The expanded 15-percent bracket for joint filers, commonly referred to as the marriage penalty relief, has also been extended. These tax rates have been extended permanently for wages paid after Dec. 31, 2012.

• Employee Social Security Tax Rate Returns to 6.2 Percent: The reduced 4.2-percent rate for employee Social Security taxes that was in effect for 2011 and 2012 has expired. The employee Social Security tax rate will return to 6.2 percent for 2013 wages up to the taxable wage limit of $113,700. Consequently, employees’ net pay under the taxable wage limit will decrease accordingly. The maximum Social Security tax that an employee would pay will be $7,049.40 for 2013. The Employer Social Security tax rate is unaffected and remains at 6.2 percent of Social Security taxable wages paid. The maximum that an employer would pay for an employee will be $7,049.40 for 2013 (see chart).

Key Provisions of ‘Fiscal Cliff’ Deal Impacting Real Estate, Payroll

Employee Social Security Tax Rate

Employer Social Security Tax Rate

Social Security Taxable Wage Base Rate

Maximum Employee Social Security Tax Paid

2012 4.2% 6.2% $110,100 $4,624.20

2013 6.2% 6.2% $113,700 $7,049.40

Difference 2% 0 $3,600 $2,425.20


ALTA news

ALTA President Frank Pellegrini and Michelle Korsmo, the association’s chief executive officer, met Dec. 19 with Consumer Financial Protection Bureau (CFPB) Director Richard Cordray.

ALTA requested the meeting to discuss development of the ALTA’s “Title Insurance and Settlement Company Best Practices” and mortgage disclosures, and continue the relationship between the land title industry and the CFPB.

“Ensuring that the interests of the land title industry are heard by the CFPB is extremely important for future growth and opportunity,” Pellegrini said. “We appreciate Director Cordray taking time to meet with us to discuss our best practices as we work to build a dialogue to ensure consumers fully understand the closing process. Additionally, businesses are contending with a lot of change as a result of the economy. At the same time, regulations

coming out of the CFPB will also cause change. This was a fantastic opportunity to remind Director Cordray of the important role title and settlement agents play in the safe and efficient transfer of real estate.”

Cordray provided positive feedback on ALTA’s Best Practices and looks forward to a continued relationship with the CFPB on future issues. He invited ALTA to return in a couple of months to continue the discussion.

ALTA President, CEO Meet with CFPB Director Cordray

The Minnesota Supreme Court handed down an opinion Dec. 12 in the Mattson Ridge v. Clear Rock Title case, which dealt with the question of whether and when an insured could obtain consequential damages in excess of the policy limits when there was a breach of contract for the improper denial of a claim.

The Minnesota Supreme Court reversed the lower court’s awarding consequential damages in this case. The appeals court had held that when a title defect is

discovered, the insured can recover damages in excess of the policy limits. ALTA joined the Minnesota Land Title Association in a joint amicus brief arguing that the awarding of consequential damages in excess of policy limits is inappropriate. According to Steve Gottheim, ALTA’s legislative and regulatory counsel, the decision does not close the door on the possibility of an insured obtaining damages for lost profits above the policy limits when an insurer breaches the insurance contract.

Minnesota Supreme Court Rules in Case Involving Damages Exceeding Policy Limit The Federal Housing

Administration (FHA) made a number of changes to its mortgage insurance programs that will impact the ability of lower-income Americans and seniors to access affordable credit. In a letter to Sen. Bob Corker (R-Tenn.) dated Dec. 18, the FHA announced the changes to “rebuild the reserves of the Mutual Mortgage Insurance Fund.” FHA solvency has become a major issue in Washington after an independent actuarial audit of the FHA showed the fund needs an additional $13.48 billion in reserves to avoid needing a bailout.

The changes include:• Raising debt-to-income

(DTI) ratio for borrowers with low credit scores. FHA will require borrowers with credit scores below 620 to have a maximum DTI of 43 percent

• Moratorium on full cash-out HECM (reverse mortgages)

• Raising the downpayment for loans above $625,500 to 5 percent

• Greater oversight on borrowers who are trying to obtain a new FHA loan three years following a foreclosureThe FHA was expected

to issue guidance by Jan. 31.

HUD Plans Changes to FHA Programs

Great People.Great Service.

It takes more than just superior financial strength and years of experience tocreate a great title company. It also takes great people that can serve you, be there for you, and help you through a difficult transaction or challenging market.

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We havegreat peopleacross the nationready to serve you.


By Jeremy Yohe

Since the financial crisis, lenders have focused on reducing settlement risk. Some have considered taking settlement work in-house, while others pondered centralized disbursement. These changes along with stronger enforcement actions against lenders for the actions of their

service providers, have resulted in a new business environment for anyone handling settlements. >>

Separate from the Pack by

Implementing ALTA’s Best

Practices

Members Can Utilize Guidelines to Demonstrate Professionalism

and Differentiate Themselves in the Marketplace


cover story

Implementation of a set of industry Best Practices developed by ALTA, however, can help title professionals meet these new market demands by proving regulatory compliance and attesting that funds and information are being protected, which could potentially result in increased market share.

After releasing an initial draft in October and receiving feedback from the Board of Governors, executive committees, membership, lenders and other stakeholders, ALTA has published its enhanced “Title Insurance and Settlement Company Best Practices” to help ensure the industry’s important role in the settlement process.

The standards include seven main categories designed to help members highlight the policies and procedures they and the title industry use to ensure a positive and compliant real estate settlement experience for lenders and consumers.

“These Best Practices are the culmination of work and discussion with agents, underwriters, lenders, regulators and other stakeholders,”

said Michelle Korsmo, ALTA’s chief executive officer. “It is our hope ALTA members can use these Best Practices as a way of emphasizing to lenders and consumers all the policies and procedures that are followed to reduce settlement risk.”

Meeting the Best Practices is a voluntary decision by title insurance

and settlement companies. ALTA expects that those companies that choose to adopt the policies and procedures will use their compliance as a way to market their businesses.

“By policing ourselves and demonstrating high ideals for the performance of our duties, we build a firm foundation of trust and confidence with those working with us as well as those seeking to regulate us,” said ALTA President Frank Pellegrini, CEO of Prairie Title. “In many ways, adopting the Best Practices will result in better management, tighter controls and even greater efficiencies within a title and closing operation.”

Enhanced TransparencyThe Best Practices should be

viewed as an evolving document that should change as market practices and demands change, according to ALTA Past President Chris Abbinante. The standards offer a starting point to help agents and

Best Practice Categories1. Establish and maintain current license(s) as required to conduct the business

of title insurance and settlement services.

2. Adopt and maintain appropriate written procedures and controls for Escrow Trust Accounts allowing for electronic verification of reconciliation.

3. Adopt and maintain a written privacy and information security plan to protect Non-public Personal Information as required by local, state and federal law.

4. Adopt standard real estate settlement procedures and policies that ensure compliance with Federal and State Consumer Financial Laws as applicable.

5. Adopt and maintain written procedures related to title policy production, delivery, reporting and premium remittance.

6. Maintain appropriate professional liability insurance and fidelity coverage.

7. Adopt and maintain procedures for resolving consumer complaints.

For more information, go to www.alta.org/bestpractices.


cover story

underwriters formalize the policies and procedures many already follow. While there will an adjustment period, Abbinante noted, “the gain will far outweigh the pain.”

“In the end, this effort will benefit our industry and create opportunities for both agents and underwriters—regardless of size,” he added. “If done right, we will be a better industry resulting in more transparency and professionalism.”

Diane Evans, chair of ALTA’s Abstracters and Title Insurance Agents Section Executive Committee, shared Abbinante’s thoughts that the Best Practices clarify the many processes the industry follows to safeguard funds and personal information.

“ALTA agent members now have a vehicle to describe the value that we bring to consumers and their lenders in each and every transaction,” said Evans, who is vice president for Land Title Guarantee Co. “Many of the Best Practices are exactly what is done in our members’ offices but, as written, these standards allow a more transparent and specific description of the processes in place. They put emphasis on the systems designed to protect the sanctity of the real estate transaction and the delivery of our title insurance product.”

Pellegrini agreed with others that implementation of the Best Practices will reap positive results for the industry at large, but also for individual members. The standards, however, will not be a “quick fix” and implementation of some of the Best Practices may not be an easy process for some.

“But a strong commitment to adhere to them will reshape how the industry is viewed by our customers,

by consumers, and by regulators and legislators,” Pellegrini said.

Over the next several months, discussion about best practices will illuminate why agents are important to every real estate transaction and how the industry plays such an integral part to the health of the economy.

“I think most agents will say ‘I follow the Best Practices every day,’” Evans said. “I look forward to helping agents across the nation tell

their story to consumers, lenders, regulators and policymakers.”

According to a survey ALTA conducted in September, an overwhelming majority of members already follow the different categories of the Best Practices. The key is improved written documentation of the processes they follow.

Hurdles to Implementation“Some of the Best Practices

will require additional time and expense to implement and hopefully agents will have adequate time to implement these items,” said Brian Pitman, president of Independence Title Co. and a member of ALTA’s Agent Executive Committee. “In some cases, it may be difficult for small agencies to meet all of these Best Practices. Hopefully, in most of those cases, their business model is not dependent on servicing large

lenders that will want these Best Practices in place.”

An example of a hurdle an agent may face in meeting all the Best Practices is utilizing positive pay, which is a part of the best practice addressing procedures and controls for escrow accounts. Some local lenders and community banks may not provide the automated fraud detection tool that matches the checks a company issues with those it presents for payment.

Craig Haskins, a member of ALTA’s Agents Executive Committee, said utilizing positive pay, Automated Clearing House (ACH) and international wire blocks should be required due to the spike in cyber-fraud.

“I’ve heard that it’s no fun trying to get your escrow funds back from someone’s basement in China,” said Haskins, who is executive vice president of Knight Barry Title. “Setting up the appropriate blocks is a no brainer. The problem here is that some smaller banks don’t have the ability to initiate these blocks, so the agent has to evaluate if they want to continue banking at their local bank—which could be their best customer—versus establishing a more secure account.”

Additionally, Haskins said agents may have the most difficulty complying with the section of Best

n “I’ve heard that it’s no fun trying to get your escrow funds back from someone’s basement in China.”

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cover story

Practices addressing information security and protecting non-public personal information

“If you have an iPhone that you charge at the office or connect to your office’s wireless Internet connection, you likely need some new protocols in place since the smartphone is a form of removable media that virtually everyone carries into the office,” Haskins said. “Agents must also use secure methods to transmit non-public personal information—meaning you’d better not email a loan app or any private information to anyone. The lending community needs to tighten this up on their end, too, since some lenders still fax and email loan applications to closing departments, both of which are unsecure.”

Overcoming ConcernsWhile the Best Practices are

voluntary, agents must remember it’s important to talk to their lender clients and learn about their requirements and then discuss all the steps and processes agents already have in place to protect transactions. State associations are encouraged to take the Best Practices and modify them to match requirements in their marketplace. Pellegrini added that agents should look past any apprehension they feel in conforming established routines to these practices.

“The marketplace is demanding change and we must deliver if we are to remain at the vital center of the real estate transaction,” he said. “Ultimately, those who are willing

to seek greater heights will succeed. Being certified in best practices, professionals will set themselves apart and this will allow them to leverage continued growth.”

With the CFPB holding lenders liable for the actions of the service providers with which they do business, it’s essential title professionals understand the urgency of implementing the Best Practices. Recent enforcement actions against lenders is notice the CFPB will penalize financial institutions when their third-party vendors’ actions harm consumers. Because of this, Abbinante stressed that this is an industry issue and is blind to business models.


cover story

“I know there are concerns that some agents and small underwriters feel this is being pushed by the major underwriters,” he said. “This is unfortunate, and I hope that good-faith participation by all will allow the sense of ‘our’ future to take over.”

Leveraging the Best PracticesWhile voluntary, Haskins views

the Best Practices as a requirement. He said national and regional lenders seem to want some type of certification of an agent before sending title and closing orders.

“We’ve already watched a handful of national lenders shift business to underwriters because of some unscrupulous acts of bad agents,” Haskins added. “So while the adoption of the Best Practices is voluntary, our company is adopting them all, then seeking certification before we voluntarily watch the business leave us because of the acts of a few bad guys.”

Until a certification process is in place, Haskins said his company will proactively self-promote its implementation of the Best Practices. Other agents should

consider this as well. Companies could consider redesigning their website and utilizing social media to highlight best-practice compliance.

“We are a large agent and we’ve worked very hard over the years to convince lenders that not all agents are alike,” Haskins said. “We don’t

want to be lumped into the same category as some of the agents who have stolen funds or blown up closings with poor practices. It’s actually tough for lenders to separate the good agents from the bad ones, but this certification will certainly help as long as the auditing process is strict and thorough.”

ALTA’s Internal Auditing Committee is creating model audit standards for the industry to use so outside vendors can audit and attest to an agent having the Best Practices in place. Over the coming months, ALTA will provide a number of member-benefit tools and educational opportunities including sample policies and procedures.

Call for Sample PoliciesIn the meantime, ALTA is

looking for members to submit sample policies already being used. Submissions will be anonymous and distributed to a related ALTA committee in order to produce standard policies or guidelines for the industry. Go to www.alta.org/bestpractices for information on how to submit your sample policy. In addition, ALTA will focus on each best practice in future editions of TitleNews Online and in webinars to offer clear examples and helpful solutions to meet these standards.

“While we have developed a set of voluntary best practices, it’s important you talk to your lender clients about all the steps and processes you already have in place to protect transactions,” Korsmo said. “Providing professional service to consumers and safeguarding funds is paramount for our industry. ALTA members should be proud of the role they’ve played in the real estate process. The title industry has a long tradition of protecting the integrity of the real estate transaction, and there is a strong role for the title industry in the future. As we have in the past, and will in the future, ALTA and its members will work hard to meet market demands, and continue to play a key role in helping people achieve the American Dream of homeownership.” n

n “As we have in the past, and will in the future, ALTA and its members will work hard to meet market demands, and continue to play a key role in helping people achieve the American Dream of homeownership.”

Jeremy Yohe is ALTA’s director of communications. He can be reached at [email protected].

running your business

More than ever, lenders want to be sure the companies to which they wire money to are taking

precautions to protect the funds. To help members highlight safeguards in place, ALTA included procedures and controls for escrow trust accounts within its “Title Insurance and Settlement Company Best Practices,” which were released in January.

The escrow trust account model procedures help ensure accuracy and minimize potential loss of client funds. To implement this best practice and verify to customers the procedures are being followed, settlement companies may engage outside contractors to conduct segregation of trust accounting duties.

Fraud ScenariosFraud can come from multiple

sources, which makes it even more essential to follow best practices to

protect escrow funds. As an example, a well-known real estate agent had a foreign customer who wanted to buy a property. The buyer told the settlement agent that he was going to send earnest money in the form of a cashier check via FedEx. The next day, the borrower identified another piece of property and wanted the money wired back. The initial clue that something was wrong, according to Jonathan Yasko of Entrust, was that a cashier’s check was used. “The days of accepting cashier’s checks are behind us, as they aren’t necessarily good funds,” he said.

Another example of a fraud scheme takes advantage of a smartphone application. Many banks have developed applications that allow deposits from photographs of a check taken by the smartphone’s camera. A husband and wife involved in a transaction took a picture of the seller’s proceeds check and the money was deposited directly to their account.

They then went into the title agency, gave the check back and asked for the money to be wired. The title agent obliged and the couple received the funds twice.

Effective Tools“You need to be smart in this

situation,” Yasko said. “An automated fraud detection tool such as Positive Pay helps prevent this from happening. You need the ability to monitor what’s going in and out of your accounts.”

Positive Pay verifies the checks an agent has written and pays only those that are authorized. An electronic file is created for the checks an agent’s accounting system generates. The file is then securely transmitted to the bank, where it can be matched to the actual check when it is presented for payment. If the information on file is not a match with the check presented for payment, it is held for the agent’s authorization before it is paid.

Yasko encourages agents to understand their bank statements, which include information about bank deposit accounts and how to handle fraud cases. In Tennessee, a person got a hold of wire information and took money out of a bank account. The agent notified the bank within an hour. By regulation, the bank must put the money back in the account until it discovers what happened.

“For the most part, you have 30 days to present a problem,” Yasko said. “Just remember; it is 30 days from the ending date of the previous month.”

Best Practice: Procedures and Controls for Escrow Trust Accounts Appropriate and Effective Controls and Staff Training Help Meet Client and Legal Requirements for Safeguarding Escrow Funds




Additional TipsUsing a good closing/reconciliation

software system also can help agents spot and prevent fraud. Account reconciliations should be used as a guide and a tool to protect your business. Agents should review the trial balance daily for file shortages or overages. There should be no outstanding deposits or wires greater than 72 hours old. Outstanding checks and wires should be reviewed for lienable items that may affect the company.

“Yon don’t want any outstanding recording or tax checks that could cause claims,” Yasko said. “Performing

reconciliations is a great way to tell you how business is processing. You can see who still needs to issue policies and if closers are doing what they are supposed to.”

Attorneys are strongly recommended to maintain a separate real estate trust account and keep real estate and non-real estate matters separate.

Additionally, title companies should require dual signatures on checks if the office size permits. Checks should be kept locked up over night or when not in use.

Conducting a terrorist name search as required by the Department of

Homeland Security is another process to follow to protect escrow funds. ALTA members have access to this search, which should be included in the closing file to prove this information was researched.

If available, agents should consider using a zero-balance account. With these accounts in place, all of the company’s funds are concentrated into one operating account. Disbursements are made from subsidiary accounts, which always maintain a zero balance. This gives agents greater control over disbursements and prevents money from being taken by an ACH debit. n

• Escrow funds and operating accounts are separately maintained

• Escrow funds or other funds the company maintains under a fiduciary duty to another are not commingled with the company’s operating account or an employee or manager’s personal account

• Escrow trust accounts are prepared with trial balances

• On at least a monthly basis, escrow trust accounts are prepared with trial balances (three-way reconciliation), listing all open escrow balances

• Escrow trust accounts are reconciled

• On at least a daily basis, reconciliation of the receipts and disbursements of the escrow trust account is performed

• On at least a monthly basis, a three-way reconciliation is performed reconciling the bank statement, check book and trial balances

• Segregation of duties is in place to ensure the reliability of the reconciliation and reconciliations are conducted by someone other than those with signing authority

• Results of the reconciliation are reviewed by management and are accessible electronically by the agency’s contracted underwriter(s)

• Escrow trust accounts are properly identified

• Accounts are identified as “escrow” or “trust” accounts. Appropriate identification appears on all account-related documentation including bank statements, bank agreements, disbursement checks and deposit tickets

• Outstanding file balances are documented

• Transactions are conducted by authorized employees only

• Only those employees whose authority has been defined to authorize bank transactions may do so. Appropriate authorization levels are set by the company and reviewed for updates annually. Former employees are immediately deleted as listed signatories on all bank accounts

• Unless directed by the beneficial owner, Escrow Trust Accounts are maintained in Federally Insured Financial Institutions

• Utilize positive pay, automated clearing house blocks and international wire blocks, if available

• Checks are completed in the hiring process and regularly conducted for existing employees

• At least every three years, obtain background checks going back five years for all employees who have access to customer funds

• At least every three years, obtain credit reports for all employees who have access to customer funds

• Ongoing training is conducted for employees in proper management of escrow funds and escrow accounting

Procedures to Meet the Escrow Trust Accounts Best Practices

Expertise to help you navigate coming regulatory changes

Another reason why Stewart is the right underwriter for you.

Stewart Title Guaranty Company is committed to guiding our agencies through the new requirements recently proposed by the Consumer Financial Protection Bureau (CFPB). We are reviewing process and technology solutions under the various scenarios to ensure that our agencies are well prepared for the coming changes.

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(800) STEWART stewart.com

© 2013 Stewart. Trademarks are the property of their respective owners.


Now that ALTA has published its “Title Insurance and Settlement Company Best Practices,” one of the next

steps is to provide education on how to integrate various aspects of the policies and procedures into business operations. Several professional development sessions during this year’s Business Strategies Conference will provide critical advice and tips title professionals need to make this happen.

In this new era of lenders requiring more information about the title companies and settlement providers with which they conduct business, ALTA members need tools to prove their professionalism and differentiate themselves in the marketplace. The panel “Differentiate Yourself Using ALTA’s Best Practices and the National Title Professional Designation” will detail how title professionals can utilize these tools to showcase how customer money and

information is protected. Attendees will leave this session with tips on how to use these options to increase status with customers and expand their market share.

During the panel “Fraud and Your Escrow/Trust Accounts,” Jonathan Yasko of Entrust Solutions, Dick Reass of RynohLive and Alma Rushing of Orange Coast Title Co. will address various procedures that can be implemented to protect escrow/trust accounts. Panelists will analyze when and how fraud typically occurs, the impact fraud has on the industry, new market demands to reduce settlement risk and proper procedures that should be followed.

“Title professionals must not just only have tools in place to protect against fraud, they also must understand the latest fraud trends and what they can do to make sure they don’t fall prey to a new fraud scheme,” Reass said.

Title professionals can also get information on third-party risk and how to protect their operation. David Townsend of Agents National Title Insurance Co. will share information on how title agents can prevent unauthorized wires from escrow trust accounts and other items that create risk. Attendees of this session will learn how to identify third-party risk exposure in agencies, how to prevent this kind of risk and how to insure against it, according to Townsend.

Andy Crisenbery of eLynx will lead a panel titled “Operational Insights on a National Settlement Agent Database.” This session will discuss the types of information being collected on settlement agents and business, how such information is verified and how to ensure that the most accurate data is maintained. Crisenbery said attendees will learn the benefits and challenges of having a unified database, and why such a solution is ultimately more efficient for the industry.

A diverse panel comprised of Pam Sember of First American SMS, Penny Reed of Wells Fargo Home Mortgage, Galen McMurtrey of Clean File Solutions and Vicki DiPasquale of Simplifile will walk through the post-closing process to define title and settlement agents’ roles, while providing best practices in the areas of trust accounting, unclaimed property, document recording, lien clearing and the handling of original documents. The panel, titled “Turn Out the Lights, the

Learn How to Implement ALTA’s Best Practices at 2013 Business Strategies ConferenceSeveral Professional Development Sessions Dedicated to Providing Tips on Integrating Best Practices Into Business Processes

inside alta


Closings Over … But There’s Still the Cleanup,” will address questions such as What falls through the cracks after the closing? What happens to un-cashed checks? and How do you make certain that documents are delivered, title is cleared and recordings are complete? DiPasquale said attendees will take away a clear understanding of their post closing responsibilities. They also will learn how to develop and implement trust accounting best practices, as well as how to manage document recording and lien clearing.

Additionally, there are several opportunities for attendees to learn about security and privacy issues and how to develop programs to protect non-public personal information

(NPI) as required by local, state and federal law.

During the session “Best Practices: Data Security Compliance,” Christopher Gulotta of Real Estate Data Shield and Paul Schwartz of Berkeley Law School will set the table in this area by providing information on applicable privacy and data security laws, as well as rules and regulations that apply to title and settlement agents. The speakers will provide useful tools, checklists and processes that can help attendees begin the compliance process. Information about privacy and data security components of ALTA’s Best Practices will help attendees prepare for lender/CFPB audits in this area.

Andy Maloney of Nashville Title Insurance Corp. and chair of ALTA’s Technology Committee, will lead a session titled “Getting Serious about Security.” Maloney will discuss the importance of email encryption, protecting NPI and IT security. He also will share tips on how to adopt and maintain a written privacy and information security plan.

Digging into information security even more, Maloney will join Todd Hougaard of GreenFolders and Gregory McDonald of Cloudstar Consulting Corp. for the panel “Lock Down Personal Information So You Don’t Get Locked Up.”

“Given the cost of a security breach—losing your customers’ trust and perhaps even defending yourself against a lawsuit—safeguarding personal information is just plain good business,” Hougaard said. “This means you need a physical and mobile security plan to protect information.”

Speakers on this panel will discuss how to implement a clean-desk policy and how to manage off-site employees. This session also will address the important steps needed to satisfy privacy obligations.

The seventh pillar of the Best Practices deals with policies and procedures to handle consumer complaints. The panel “Successfully Deploying Mobile Tools for Compliance & Customer Service,” will be led by Jan Clark and Gregory Teal of Ernst Publishing.

“The Consumer Financial Protection Bureau is measuring the industry against a metric never used before—borrower satisfaction,” Clark said. “There are a number of things we can and should do to improve the consumer experience. We’ll cover them in this session.” n

inside alta

ALTA’S 2013 Business Strategies Conference • When: Wednesday, March 13–Friday, March 15

• Where: Renaissance Hotel, Oklahoma City, Okla.

• More info: www.alta.org/meetings/businessstrategies

Schedule At-A-GlanceWednesday, March 139:00 a.m.–5:00 p.m. Agents & Abstracters Forum (Separate Registration)5:30–7:00 p.m. Exhibit Showcase Opening Reception

Thursday, March 148:00–9:00 a.m. Continental Breakfast in the Exhibit Showcase 9:15–10:45 a.m. General Session11:00 a.m.–12:15 p.m. Professional Development Sessions12:15–2:00 p.m. Lunch in the Exhibit Showcase2:15–3:30 p.m. Professional Development Sessions3:45–5:00 p.m. Professional Development Sessions5:00–6:30 p.m. Happy Hour Reception in the Exhibit Showcase

Friday, March 157:00–9:00 a.m. Continental Breakfast in the Exhibit Showcase9:00–10:30 a.m. General Session 10:45 a.m. –12 p.m. Professional Development Sessions12:00–2 p.m. Closing Luncheon



The Consumer Financial Protection Bureau (CFPB) on Jan. 10 adopted new mortgage rules requiring lenders to ensure

prospective buyers have the ability to repay their mortgage. The rule, which goes into effect Jan. 10, 2014, also protects borrowers from risky lending practices such as “no doc” and “interest only” features.

“When consumers sit down at the closing table, they shouldn’t be set up to fail with mortgages they can’t afford,” said CFPB Director Richard Cordray. “Our Ability-to-Repay rule protects borrowers from the kinds of risky lending practices that resulted in so many families losing their homes. This common-sense rule ensures responsible borrowers get responsible loans.”

ALTA appreciates the CFPB’s efforts to ensure consumers have the financial ability to repay their mortgages and will continue to work alongside the Bureau to ensure a safe real estate transaction for consumers and ALTA’s members.

“This is a complex rule and we will continue to study its effect on credit availability,” said American Land Title Association CEO Michelle Korsmo. “Making sure that creditworthy borrowers will still have access to affordable mortgages is paramount for the continued revival of our fragile housing recovery.”

In a letter to Cordray in April of 2012, ALTA encouraged the CFPB to issue a broadly defined QM rule that covers a wide range of = safe products and underwriting criteria. ALTA believes Congress intended that all creditworthy borrowers—especially low- and moderate-income borrowers—should be extended the important protections of a QM.

Ability to RepayUnder the rule, all new mortgages

must comply with basic requirements that protect consumers from taking on loans they don’t have the financial means to pay back. Among the features of the new rule:

• Financial information has to be supplied and verified

• A borrower has to have sufficient assets or income to pay back the loan

• Teaser rates can no longer mask the true cost of a mortgage

“Under our new rule, lenders will have to determine a borrower’s ability to repay,” Cordray said. “They will have to evaluate the borrower’s income, assets, savings and debts. And this determination will be based on both the principal and the interest on the mortgage over the long term—not just during an introductory period. Low- and no-doc loans will be effectively prohibited, and affordability will be determined based on the interest rate that would prevail in the absence of any teaser rates. In these key respects, borrowers no longer will be sold mortgages that are predestined to fail.”

Qualified MortgagesLenders will be presumed to

have complied with the Ability-to-Repay rule if they issue “qualified mortgages.” These loans must meet certain requirements that prohibit or limit the risky features that harmed consumers in the recent mortgage crisis. If a lender complies with the clear criteria of a qualified mortgage, consumers will have greater assurance that they can pay back the loan. Qualified mortgage features include:

• No excess upfront points and fees• No toxic loan features• Cap on how much income can go

toward debtQualified mortgages generally

will be provided to people who have

CFPB Defines Qualified Mortgage, Issues Ability-to-Repay RuleMany Don’t Believe Rule Will Be a Game Changer, But One Provision Could Impact Affiliated Businesses



debt-to-income ratios less than or equal to 43 percent. For a temporary, transitional period, loans that do not have a 43 percent debt-to-income ratio but meet government affordability or other standards will be considered qualified mortgages.

“Qualified mortgages cannot contain certain features that often have harmed consumers,” Cordray said. “They cannot have excess points and fees, which are the upfront costs that a lender imposes on the borrower at the outset of a loan. They cannot be risky loans such as negative-amortization loans, where the principal amount actually increases for some period because the borrower does not even pay the interest and the unpaid interest gets added to the amount borrowed.”

There are two kinds of qualified mortgages that have different protective features for a consumer and different legal consequences for the lender. The first, qualified mortgages with a rebuttable presumption, are higher-priced loans. These loans are generally given to consumers with insufficient or weak credit history. Legally, lenders that offer these loans are presumed to have determined that the borrower had an ability to repay the loan. Consumers can challenge that presumption, though, by proving that they did not, in fact, have sufficient income to pay the mortgage and their other living expenses.

The second, qualified mortgages that have a safe-harbor status, are generally lower-priced loans. They are generally prime loans that are given to consumers who are considered to be less risky. They will also offer lenders the greatest legal certainty that they are complying with the new Ability-to-Repay rule. Consumers can legally challenge their lender if they believe

the loan does not meet the definition of a qualified mortgage.

To help ensure revival of the home lending market, ALTA had advocated for a QM rule that promotes sound underwriting requirements and excludes risky loan features, while giving lenders and investors reasonable protection against undue litigation risk.

Exempt from the rule are:• Certain nonprofit creditors that

work with low- and moderate-income consumers

• Certain homeownership stabilization programs—such as those that offer loans made in connection with the Making Home Affordable program—which help consumers avoid foreclosure.

The Independent Community Bankers of America (ICBA) said it is encouraged that the final rule includes special exemptions for smaller lenders. In most cases, loans that have balloon-payments would not count as qualified mortgages nor would they enjoy any special legal protection from potential lawsuits from borrowers. The CFPB included a carve-out for community lenders that operate predominantly in rural or under-served areas. To qualify as a QM loan, the community lender would have to keep the balloon-payment mortgage on its books.

Market ImpactIncluded in the rule is a provision

that limits the amount of fees and points that lenders can charge consumers to 3 percent of the loan amount. This could impact affiliated companies that offer title insurance or settlement services. Companies with affiliated businesses are concerned this could hurt their business model. If borrowers purchase title and settlement services from third parties

that aren’t owned by an affiliated company, then the costs don’t count toward the cap.

Because positions on affiliated businesses are mixed, ALTA’s Board of Governors has said ALTA will serve as a resource to its members and offer advice if they want to advocate on this issue, regardless of their position. For more information, contact Justin Ailes, ALTA’s vice president of government and regulatory affairs, at [email protected].

KBW analyst Brian Gardner said in a note that the final rule had few surprises and might not do much to shake up the mortgage market as it currently stands.

“We doubt it will be a game changer for the mortgage and housing markets because many of the lending practices the QM rule will try to restrict were discontinued in 2007-2008. This will be a classic case, in our view, of the horses already being out of the barn,” he wrote.

Many of the largest banks—including Bank of America, JPMorgan Chase and Citigroup—had already withdrawn from the sub-prime mortgage market. Now, more than 90 percent of all loans that are originated are GSE and FHA loans.

Others say the rules provide certainty and will encourage lenders to ease standards. The new rules should help convince private mortgage investors “that it’s safe to come back in the water,” said John Taylor, chief executive of the National Community Reinvestment Coalition.

Over time, a market should develop for non-qualified mortgages. “Where there’s money to be made, and where it’s clear that something illegal or predatory is not occurring, there will be a market for it because there will be a better rate of return,” Taylor said. n


people on the move

In 1896, at the age of 16 and no money or job, Amy Kaspar’s grandmother fled Romania in search of a better life in

America. These humble beginnings remain a strong part of Kaspar, whose retirement at the beginning of 2013 culminated a prosperous 38-year career in the title insurance industry.

“I’m an example of the American Dream,” said Kaspar, who served as president and chief executive officer of Kasparnet for 32 years before spending 2012 serving as a business development liaison to agents of Old

Republic National Title Insurance Co. “I believe in paying it forward and urge others to do the same. If you are lucky to love what you do and you are respected in your industry, you have an obligation to give back.”

As a divorced single mother in 1975, Kaspar landed a position as a courthouse searcher for a title company in northern Ohio. A recession hit the country in 1980, and Kaspar and thousands of others in the real estate industry lost their jobs. Undaunted, she took her experience and started her own company doing

searches for title companies and attorneys.

“I did a lot of gas and oil work, as well as searches for preservation land and railroads, so I conducted a lot of interesting exams,” Kaspar said.

Kaspar worked by herself until the early 1990s when her son, Larry Crooks, joined the company. They changed the company name to Kasparnet and decided to expand. Kasparnet, which provides title production, management and research services, including electronic title reports, had 45 employees when it was acquired by Old Republic National Title Holding Company in 2004. The company now provides services in 11 states. Being able to provide people a career is something Kaspar treasures.

“I’ll miss the people that I interacted with and whose lives I impacted,” Kaspar said. “I employed a lot of people over the years and I’m proud of the mentoring I was able to provide and the opportunity to give them a better life.”

Giving back also meant representing the industry. Kaspar joined ALTA in 2000 and served on the Membership Committee until the 2012 Annual Convention. She also participated on the Research Committee for several years.

“I believe in our land system. It’s what sets us apart from all other countries. I’m committed to preserving that,” Kaspar said. “It’s important to join ALTA and your state land title association, and get involved. Either

Title Veteran Values Mentoring, Providing Career Path for EmployeesAmy Kaspar Retires After 38 Years in Industry

Alison Gareffa, Amy Kaspar and Larry Crooks.

<


people on the move

we succeed together or fail apart. We need to stand in numbers.”

A member of the Ohio Land Title Association’s board for seven years, Kaspar served as OLTA’s president in 2009-2010 as the association marked its 100-year anniversary. She received OLTA’s Meritorious Award in 2011, honoring her service to the title industry and the association. In addition to serving as chair of OLTA’s Membership Committee, Kaspar also served on the legislative and regulatory committees.

“During my year as president, OLTA pushed for the ban on private transfer fees,” Kaspar said. “We were among the early states to pass legislation banning these predatory fees and I’m proud of that.”

When Mark Bennett started working as executive director of the Ohio Land Title Association, Kaspar was instrumental in helping him learn the various complexities of the title industry. “Amy has a true passion for this industry and continues to give back to OLTA even after her presidency,” Bennett said. “I consider her a great mentor of mine and continue to seek her counsel.”

Having operated a company through previous economic downturns, Kaspar encourages title agents to plan smart by continually looking ahead and understanding what will be the “next best thing.”

“What will your clients want and when?” she asked. “You must be able to move on a dime and run as efficiently

as you can. A mentor of mine who was an attorney said to me ‘If you show up every day and do good work, the work will come.’”

While Kaspar is stepping away from full-time responsibilities, she isn’t leaving altogether. She will serve as a consultant with Old Republic to plan the company’s hospitality events during ALTA’s Annual Convention.

“No one is ready to step out of the fray, but the timing just felt right,” Kaspar said. “People who come to ALTA’s Annual Convention are passionate about their industry. They may be competitors, but we are all friends. And I look forward to seeing everyone in October.” n

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industry news

Highlighting the need for title companies to have a stronger presence on the Internet, a joint study by the National Association of Realtors and Google shows real estate-related searches on Google.com have grown 253 percent over the past four years.

The objective of the study titled “The Digital House Hunt: Consumer and Market Trends in Real Estate” was to understand better the evolving role of digital media in the consumer home search process. The report discovered trends around digital media usage among home shoppers, whether they were looking for an existing home, a newly constructed home or an apartment.

“Increasingly, online technologies are driving offline behaviors, and home buying is no exception,” said Patrick Grandinetti, Google’s head of real estate. “With 90 percent of home buyers searching online during their home buying process, the real estate industry is smart to target

these people where they look for and consume information—for example through paid search, relevant websites, video environments and mobile applications.”

Title companies marketing their services in these areas may be able to capture more orders in the future by connecting with consumers utilizing the Internet to find a home. They also could target real estate agents with a strong web presence. Title companies can use the Internet cost-effectively to market their services to consumers by enhancing their website, through social media and blogs, and database companies.

Trends Discovered in Report

• 90 percent of home buyers searched online during their home buying process. In the beginning of their search, buyers rely on search engines, moving toward maps in the middle of the process, and engaging mobile applications most

toward the end of their search.

• First-time buyers frequently searched terms such as “FHA loan,” “FHA,” “home grants,” “home loan,” and “home buyer assistance.” Last year, more than four out of 10 first-time buyers purchased their homes with a Federal Housing Administration-insured mortgage.

• The five states with the highest number of online queries from people presumed to be first-time buyers were Delaware, Louisiana,

Mississippi, South Dakota and Wyoming.

• Queries related to retirement homes were highest in Nebraska, North Carolina, Oregon, Virginia and Washington.

• For vacation home searches, the top five states were Florida, Ohio, Oregon, South Carolina and South Dakota.

• Searches on numbers of bedrooms/bathrooms, square footage, garages, HVAC systems, and swimming pools accounted for 70 percent of all searched features on realtor.com.

More Consumers Flocking to Web for Real Estate Searches

RamQuest Inc., a software provider to the title insurance industry, announced the availability of its interface with MortgageDocs, a nationwide notary management company.

This integration enables title companies using RamQuest’s Total Solution to electronically order notary and attorney

services for closings directly within their title production solution. This connection is made possible through RamQuest’s Closing Market, an application-to-application interface that electronically connects business partners allowing each participant to work from within their own software.

RamQuest Announces MortgageDocs Integration


industry news

Detroit-based Quicken Loans Inc. announced it closed more than $70 billion in home loan volume in 2012 to become the third largest retail lender in America.

The 133-percent increase over the previous record of $30 billion set in 2011 helped the lender solidify its position as the

largest online lender in the country.

Quicken Loans reported it nearly doubled its number of full-time team members over the past year and now employs more than 8,000 in offices in Detroit, Cleveland and Scottsdale, Ariz., including almost 900 technology related positions.

Quicken Loans Experiences Record Home Loan Volume in 2012

Fannie Mae announced updates to the maximum allowable foreclosure attorney (or trustee) fees for mortgage loans. The change also applies to participation pool mortgage loans and MBS mortgage loans serviced under the special servicing option secured by properties

located in the states and U.S. territories. All fee revisions are effective for mortgage loans referred to an attorney (or trustee) on or after Jan. 1, 2013. These fees include all steps required to complete a judicial or non-judicial foreclosure, other than fees for mediations and settlement conferences.

Fannie Mae Announces Change in Maximum Allowable Attorney Fees

Pittsburgh-based National Real Estate Information Services (NREIS) will lay off its remaining 215 employees beginning in February as it prepares to wind down operations, according to a filing with the Pennsylvania Department of Labor and Industry.

NREIS said the layoffs would be “a result of the dissolution and windup” of the company. Offices carrying the NREIS name in New Jersey and Alabama that severed ties with the company last year will remain open.

NREIS had been in business for more than 25 years. It was formed in 1993 when National Real Estate Loan Services and Home Equity Information Services merged. At one time, NREIS had more than 1,200 employees and serviced eight of the largest originators. According to its website, NREIS is licensed as an issuing agent in 34 states and the District of Columbia, and is underwritten by Chicago Title Insurance Co. and Fidelity National Title Insurance Co.

Vendor Management Company to CloseSimplifile announced

Morton County, Kan., became the 800th U.S. jurisdiction to implement Simplifile’s electronic recording service. The company said its growth shows that electronic recording is no longer a new concept, but rather something that counties are pursuing. “When new counties begin e-recording

today, they are no longer diving into uncharted waters,” said Paul Clifford, president of Simplifile. “E-recording has become a mainstream service adopted by recording jurisdictions throughout the U.S. and has been proven to securely enhance the entire recording process.”

Simplifile Reaches E-recording Milestone

Accurate Group Holdings, Inc., a provider of technology and data-enabled services to mortgage lenders, including title and closing products, received a $55-million equity investment led by ABS Capital Partners.

Accurate Group will use the funds to fuel continued growth. As a result of the financing, ABS Capital Managing General Partner Phil Clough and General Partner Cal Wheaton will join Accurate’s Board of Directors.

“Accurate’s business model is based on a proprietary technology platform that facilitates high-volume transaction processing and tailored technology integrations for each of our institutional clients,” said Paul Doman, president and chief executive officer of Accurate Group. “We have developed strong, collaborative relationships with an outstanding group of clients along with a diverse suite of more than 100 products that provide value-added solutions to these clients.”

Accurate Group Receives $55 Million Investment

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2012 tipac contributors

Diamond Club Level • $5,000Christopher Abbinante Fidelity National Title Insurance Company Justin Ailes American Land Title AssociationAnne Anastasi Genesis AbstractMark Bilbrey Old Republic National Title Insurance CompanyBill Burding Orange Coast Title CompanyPam Day Day Title ServicesSteven Day Fidelity National Title Insurance Company Diane Evans Land Title Guarantee CompanyDennis Gilmore First American Title Insurance CompanyMichelle Korsmo American Land Title AssociationChris Leavell First American Title Insurance CompanyErika Meinhardt Fidelity National Title Insurance Company Daniel Mennenoh H.B. Wilkinson Title Barbara Miller TSS Software CorporationMichael Nolan Fidelity National FinancialBill Peirson Peirson Patterson, LLPFrank Pellegrini Prairie TitleRaymond R. Quirk Fidelity National Financial, Inc.

Emerald Club Level • $4,999-$2,500 Herschel Beard Marshall County AbstractBobby Burgess Chicago Title Insurance CompanyDiane Calloway Specialized Title Services

Richard Cannon First American Title Insurance CompanyCara Detring Preferred Land Title, LLCTim Evans Evans Title Agency, Inc.John Freyer, Sr. Land Title Guarantee CompanyTom Hartman First American Title Insurance CompanyJohn Hollenbeck First American Title Insurance CompanyParker Kennedy First American Title Insurance CompanyGreg Kosin Greater Illinois Title CompanyKevin Lutes Fidelity National Title GroupMark McElroy RamQuestKeith Newlon Pioneer Title AgencyMaureen Pfaff Olympic Peninsula Title Co.Brian Pitman Independence TitleMike Pryor Stewart Title of Arkansas, LLCDick Reass Rynoh LiveAl Santoro Esquire Title ServicesSally Tyler First American Title Insurance Company W.B. Vollbracht Land Title Guarantee CompanyJohn Voso Old Republic National Title Insurance Company

Platinum Club Level • $2,499-$1,000Marty Askins Stephens County Abstract Co.Joseph Attura First American Title Insurance CompanyPeter Birnbaum Attorneys’ Title Guaranty Fund

Cynthia Blair Rogers, Townsend & Thomas PCKaren Brown Boone-Central Title CompanyKaren Burnette First Title & Abstract Service, Inc.Frank Busch Thomas Title & EscrowShonna Cardello White Rose Settlement ServicesCurt Caspersen First American Title Insurance CompanyRob Chapman Old Republic National Title Insurance CompanyYvonne Deardorff Lakeside Title CompanyDavid Dunbar Meridian Title CorporationCelia Flowers Upshur County Title CompanyDan Fowler Near North National TitleMike Fromhold First American Title Insurance CompanyTommye Frost Fidelity National FinancialJoseph Ghilardi First American Title Insurance CompanyMike Gilbert Mountain Land TitleLarry Godec First American Title Insurance CompanyMark Greek First American Title Insurance Company Jeff Green Knight Barry Title, Inc.Peter Griffiths Land Title Guarantee Company Brian Hamilton Land Title Guarantee CompanyPaul Hammann First American Title Insurance CompanyBlake Hanby City Title & Closing LLCCraig Haskins Knight Barry Title, Inc.



Michael Hillman First American Title Insurance CompanyCarrie Hoyer Wisconsin Title ServiceRod Ives First American Title Insurance Company Roger Jewkes Fidelity National Title Insurance CompanyTodd Jones First American Title Insurance CompanyBeverly Jones Grand River Abstract & Title CompanyKay Keller Traill County Abstract and Title CompanyCynthia Koebele TitlesmartJohn LaJoie First American Title Insurance CompanyBrent Laliberte Bayou TitleSherri Landauer Lakeside Title CompanyLinda Larson Old Republic National Title Insurance CompanyRandy Lee Stewart Title Guaranty CompanyJeanette Liesen 1st Service Title & ClosingTed Lovec American Title and EscrowScott Luna Cherokee Capitol AbstractJohn Magness Old Republic National Title Insurance CompanyAndy Maloney Nashville Title Insurance CorporationMichael Maniche Guardian TitleJohn Marconi Orange Coast Title CompanyMichael Marconi Orange Coast Title CompanyBeverly McReynolds North American Title CompanyWilliam F. Miller Jr. Land Title Company of Alabama Bob Newlon Pioneer Title AgencyMary O’Donnell Westcor Land TitleRich Patterson Connecticut Attorneys Title CompanyTim Pearson North Dakota Guaranty & Title Company

Mary Pellegrini Prairie TitleWilliam Perry First American Title Insurance CompanyKurt Pfotenhauer First American Title Insurance CompanyJoe Powell Chicago Title Insurance CompanyBrenda Rawlins First American Title Insurance CompanyCaleb Reppert First American TitleJohn Robichaux Ironclad TitleSteven Rogers First American Title Insurance Company Mark Rutherford First American Title Insurance CompanyPaul Sawtell Dominion Title CorporationRandall Scott First American Title Insurance CompanyDeborah Scroggins First American Title Insurance CompanyPhillip Sholar First American Title Insurance CompanyGiancarlo Spolidoro Glaser, Weil, Fink, Jacobs, Howard, Avchen & Shapiro, LLPKirk Sterling Old Republic National Title Insurance CompanyScott Stevenson Northwest TitleDavid Townsend Agents National Title Insurance CompanyDarin Trites TRN Abstract & TitleAndrew Wells Property InsightGregory Wick Pennington Title CompanyJohn Wiley Orange Coast Title CompanyMarilyn Wille The Title Company, Inc.Stephen Wilson Old Republic National Title Insurance CompanyTony Winczewski Commercial Partners Title, LLCMark Winter Stewart Title Guaranty CompanyRande Yeager Old Republic National Title Insurance Company

Evan Zanic First American Title Insurance Company

Gold Club Level • $999-$500Kenneth Aalseth First American Title Insurance CompanyEllen Albrecht First American Title Insurance CompanyLouie Andrew Guaranty Title Inc.Michael Anthony South Bay Title Insurance AgencyKathy Austen Fidelity National Title GroupMarjorie Bardwell Fidelity National Title Group, Inc.Doug Bello D. Bello AssociatesJohn Bethell John Bethell TitleJeffery Bluhm Old Republic National Title Insurance CompanyJim Bondurant Tennessee Valley Title InsuranceGregory Booth Booth Title Group, LLCMichael Brandner Gowey Abstract & Title, Inc.Judith Braun-Colcord Old Republic National Title Insurance CompanyMark Budzinski Old Republic National Title Insurance CompanyCraig Burns Security 1st TitleChester Carmer First American Title Insurance CompanyTim Conley SoftProPat Connor Old Republic National Title Insurance CompanyMaureen Dalton Monarch Title CompanyBill Dinnebeil Equity Title of ColoradoLynn Donner First American Title Insurance CompanyRic Eborall Alliance Title & Escrow Corp.John Freyer, Jr. Land Title Guarantee CompanyThomas Gates First American Title Insurance CompanySue Geigle Professional Title Solutions



Leslie Godec First American Title Insurance CompanySteve Gottheim American Land Title AssociationJohn Green RetiredDeeAnna Herwig Land Title Guarantee CompanyMichael Holt First American Title Insurance CompanyJulie Hoppe Vintage Title & Escrow Co, Inc.Cornelia Horner American Land Title AssociationDavid Huffman Attorneys’ Title Guaranty FundRobert Ibler Chicago Title Insurance CompanyValsa Jacob Orange Coast Title CompanyJerome Jelinek Corporate Settlement SolutionsCurt Johnson First American Title Insurance CompanyRoss Keller Trail County Abstract & Title CompanyBrian Kramer Tripp & Todd Title CompanyNatalie Lancaster Stewart Title Guaranty CompanyWilliam Langner Douglas County AbstractDeborah Lewis Taylor Abstract & Title CompanyMaxwell Link First American Title Insurance CompanyMichael Lorber Nova Title Agency Inc.Ken Mackay First American Title Insurance Company Gregory Mason Edina Realty TitleMatt McBride Continental Title CompanySally McCash Joseph, Greenwald & LaakeJohn McGrath First American Title Insurance Company Jeffrey Mitzner First American Title Insurance CompanyTerrance Monnie Terry Monnie Title CompanyCarolyn Monroe Old Republic National Title Insurance Company

Stewart Morris, Jr. Stewart Title Guaranty CompanyVirendra Nath HDEP InternationalKatheryn Nathan Douglas County Title EscrowJohn Obzud Fidelity National Title Insurance CompanyJoanna Patilis Fidelity National Title Insurance CompanyJoseph Petrelli Demotech, Inc.Scott Pierce Old Republic National Title Insurance CompanyRandy Pittman West Texas Abstract & Title CompanyRobert Ptolemy LaPlata Abstract Co.Thomas Richardson Liberty TitleMarvin Ripp First American Title Insurance CompanyGary Robison Land Title Guaranty CompanyJeffrey Rogers First American Title Insurance CompanyTed Rogers Security Title Guarantee Corp.Kelly Romeo American Land Title AssociationBryan Rosenberg First American Title Insurance CompanyJames Russick Old Republic National Title Insurance CompanyConnie Sawtell Dominion Title CorporationJody Schimek Alexandria Title CompanyThomas Schlesinger First American Title Insurance CompanyRonnie Semlak Burnet TitleJames Smyithe Sathre Title & AbstractRobert Soule Commonwealth Land Title Insurance CompanyShelley Stewart Southern TitleGreg Thurman Thurman & FlanaginCasey Tomten The Title Company

Larry Tuliszewski Fidelity National FinancialSal Turano Abstracts IncorporatedHerbert Walton Old Republic National Title Insurance CompanyPhilip Webb First American Title Insurance Company Jeff Wiener Old Republic National Title Insurance CompanyCharles Wimer Fidelity National Title Insurance CompanyVan Winton Clay County AbstractDennis Wolfe First American Title Insurance CompanySomaia Zaki First American Title Insurance CompanyAldo Zucaro Old Republic National Title Insurance CompanyOhio Land Title Association PAC

Silver Club Level • $499-$250Peggy Adams Adams Abstract CompanyPaula Bachmeier Minot Guaranty & Escrow CompanyPaula Bachmeier Minot Guaranty & Escrow CompanyCindy Barney Barney Abstract & Title CompanySuzanne Basiago JMB Enterprises, LLCJeffrey Bates D. Bello AssociatesAnna Batten Chicago Title Insurance CompanyBrian Beckner Tri-County Title & Escrow CompanySandra Bell First American Title Insurance CompanySam Benne First American Title Insurance Company of SDBrian Bowman First American Title Insurance CompanyAlbert Boyce Old Republic National Title Insurance CompanyEdson Burton, Jr. Chicago Title Insurance CompanyRobert Camerota First American Title Insurance Company Pat Carney reQuire



Eric Carstensen Fidelity National Title Insurance CompanyVincent Cassidy Majesty TitleJason Chun First American Title Insurance CompanyWilliam Clark Dakota Abstract & Title CompanyChristopher Clemens First American Title Insurance CompanyPaul Clifford SimplifileWayne Condict First American Title Insurance CompanyPaul Cones Integrity TitleSue Cosgriff Cass County Abstract/Red Rivers TitleBill Coyle Accu TitlePatrick Curry Waco Title CompanyRobert Dailey First American Title Insurance CompanyElizabeth Daniel Continental Title CompanyLarry Davidson First American Title Insurance CompanyAaron Davis Hillsborough TitleLarry Deal First American Title Insurance CompanyFrancine D’Elia Wirsching Community First AbstractTerry Detring Preferred Land Title, LLCKevin Dodson reQuireAndrew Drake Arsenal Insurance CorporationBrett Eakins Central Colorado Title & EscrowMatt Evans Evans Title Agency, Inc.Nancy Farrell Venture Title AgencyBeau Fast Lenders Title CompanyDan Fazendin Minnetonka Title Inc.David Feldman First American Title Insurance CompanyAlan Fields Florida Land Title Association

Curtis Fix Yuma County Abstract CompanyRay Forliti Old Republic National Title Insurance CompanyPaul Fox Ernst Publishing Company, LLCMarie Franco First American Title Insurance Company Alison Gareffa Old Republic National Title Insurance CompanyKevin Gartland All American TitleWendy Gibbons Stewart Title Guaranty CompanyCelia Goode-Haddock University Title CompanyJames Graham Ottawa County Abstract & TitleMichele Green First American Title Insurance CompanyBarbara Griest Trident Land Transfer CompanyArlene Griffiths ACS Knox Title and Closing ServicesJohn Hall Old Republic National Title Insurance CompanyRoger Hannaford Hannaford Abstract Title CompanyJames Harper PFA, Inc.John Haviland South Ridge Abstract and Title CompanyCharles Hayden Old Republic National Title Insurance CompanyMartin Henschel Edina Realty TitleCharles Holleman Abstract & Guaranty CompanyMark Holley RamQuestGeorge Houghton Stewart Title Guaranty CompanyChuck Hoyum Old Republic National Title Insurance CompanyDaniel Hunt First American Title Insurance CompanyGeri Huser Iowa Title GuarantyRichard Icklan Old Republic National Title Insurance CompanyKenneth Jannen First American Title Insurance CompanySteven Jewett Alliance Title & Escrow Corp.

Fred Jones Old Republic National Title Insurance CompanyCheryl Jones Old Republic National Title Insurance CompanyBrandt Keefe Stewart Title Guaranty CompanyBryan Kelley First American Title Insurance Company Michael Kennerley Signature Information SolutionsNicholas Koester Fidelity National Title GroupMichael Koors First American Title Insurance CompanyTiffany Krueger First American Title Insurance CompanyMitchell Lafleur First American Title Insurance Company of SDPaul Langner Douglas County AbstractSteven Lax Saxony Title ServicesSimon Leeming Preti, Flaherty, Beliveau & Pachios LLPChris Lieser Old Republic National Title Insurance CompanyJohn MacMaster Williams County Abstract CompanyScott Mainwaring First American Title Insurance CompanyCharlene Maleare Lenders TitlePatrick Malone Peoples Abstract CompanyTim McDonnell Old Republic National Title Insurance CompanyJessica McEwen American Land Title AssociationDonald McFadden McFadden & FreeburgJim Milinkovich First American Title Insurance CompanyMichael Mills First American Title Insurance CompanyRobert Moline Home Services of AmericaMary Moran Fidelity National FinancialTaylor Morris American Land Title AssociationLucas Newman Metro National Title



Charles Nichols Abstract & Guaranty CompanyJeffrey Noble Old Republic National Title Insurance CompanyMike O’Donnell Riker, Danzig, Scherer, et alDon Ogden First American Title Insurance CompanyJames O’Rourke Liberty Bell AgencyRoy Perilloux Security Title Guarantee Corp. of BaltimoreDavid Pietsch Title Guaranty HawaiiJimmy Plumlee City Title & Closing LLCRichard Rager Old Republic National Title Insurance CompanyAndree Ranft First American Title Insurance CompanyMargaret Redman First American Title Insurance CompanyRichard Rennell Resource Title National AgencyTori Robinson Old Republic National Commercial Title ServicesMark Rosser First American Title Insurance CompanyAlma Rushing Orange Coast TitleGreg Scanio First American Title Insurance Company Donna Schmulbach First American Title & Trust CompanyG. Barry Schmulbach Stewart Title Guaranty CompanySandra Schoen Old Republic National Title Insurance CompanyJames (Mike) Sellari Mississippi Valley Title Insurance CompanyHenry Shulruff Attorneys’ Title Guaranty FundWayne Shupe Old Republic Title CompanyJames Sibley Title Data, Inc.Bob Sink First American Title Insurance CompanyMark Sinkhorn Fidelity National Title Insurance CompanyDana Solms Old Republic National Title Insurance Company

Chris St. John Lawyers Title of TopekaJames Stipanovich Old Republic National Title Insurance Company Skip Straus Straus & EislerDwain Stufflebeam Title Financial CorporationBrian Sumpter Integrity TitleJulie Susik Old Republic National Title Insurance CompanyJoseph Tavarez First American Title Insurance CompanyGregory Teal Ernst Publishing Company, LLCSteve Terry RamQuestFrank Violi First American Title Insurance CompanyMark Wahlstrom First Dakota Title

David Welshons DCA TitleRichard Welshons DCA TitlePhillip Wert First American Title Insurance CompanyJohn Wiles Law Offices of John N. WilesRichard Wilson Old Republic National Title Insurance CompanyGreg Wolff Colorado Land Title AssociationJohn Wunderlich Fidelity National FinancialJeremy Yohe American Land Title AssociationJohn Younglove Genesis Abstract, LLC Fidelity National Financial PAC 2001

Be a Voice for Your Industry

The Title Action Network (TAN) is an energized movement of title insurance industry professionals promoting the industry’s value and protecting consumer rights.

TAN is:• Quickandfreetojoin.

• Notgoingtoclogyouremailortakeupyourtime.

• Easy-to-understandandprovidesbriefadvocacyupdatesonissuesimportanttoyou.

• Focusedonensuringstateandfederallegislatorsunderstandthevalueofthelandtitleindustry.

Join TAN today and take action to preserve the industry’s future.

www.titleactionnetwork.com


the last word

- Frank Pellegrini, ALTA president

Despite Market Changes, There’s Energy, Positivity and Optimism

With the changes in our industry, it’s fitting the Business Strategies Conference is being held in Oklahoma City, which was founded during the Land Rush of 1889. This was the first land run into the Unassigned Lands, which were considered some of the best

unoccupied public land in the United States. The land run started with an estimated 50,000 people lined up for their piece of the available two million acres. There was energy. Positivity. Optimism.

A number of the people who participated in the run entered the unoccupied land early and hid there until the legal time of entry to lay claim on choice homesteads. These people came to be identified as “Sooners.” This led to hundreds of legal contests, decided first at local land offices and eventually by the U.S. Department of the Interior.

Over the past two decades, more than $5 billion has been spent revitalizing Oklahoma City into a true visitors’ destination. There’s energy. Positivity. Optimism. In a way, it’s similar to change we are experiencing in our industry. New lender and market demands have forced us to revisit our processes and rethink how we prove our value. This can seem daunting to some. Don’t despair. ALTA’s leadership has taken action to ensure our industry’s future. There’s energy. Positivity. Optimism.

In January, ALTA published its “Title Insurance and Settlement Company Best Practices” to help members illustrate model policies and procedures, which if followed, help ensure a positive and compliant real estate settlement experience. Many sessions during the conference will provide concrete examples and tips on how you can implement and leverage the Best Practices to grow your business.

Join me in Oklahoma City as we stake our claim as the valued independent third party in the real estate transaction. There’s energy. Positivity. Optimism.

Thank You. For over 100 years, Old Republic Title has thrived during the many seasons of change in the industry. No matter the economic climate, we’ve remained committed to sound and ethical business practices, as evidenced in our financial strength and long-term stability. And, as always, we will continue to provide exceptional service, along with our underwriting expertise.

Thank you for being a part of our success story. We appreciate your ongoing business and support.

Underwriters in the Old Republic Title Insurance Group, Inc. are: Old Republic National Title Insurance Company, Mississippi Valley Title Insurance Company and American Guaranty Title Insurance Company.

S t r e n g t h a n d S t a b i l i t y f o r O v e r a C e n t u r y

facebook.com/OldRepublicNationalTitle @OldRepTitle

612.371.3882http://content.oldrepublictitle.com/TNM2

What does the 1,099 page CFPB ruling mean for your business? At SoftPro we understand how changes, like the new CFPB ruling, impact your business and

are committed to keeping you up-to-date and equipped with the necessary tools to efficiently

handle them. As the nation’s leading provider of closing and title software, we develop

award-winning, highly innovative closing and title software to keep you on the right track. C L O S I N G A N D T I T L E S O F T WA R E

Call 800-848-0143 for a FREE 30 Day TRial or visit www.softprocorp.com.

WiTH NEW REgulaTioNs Fast approaching, WE Will HElp you

sTay oNTRack.

separate from the pack by implementing alta’s best practices · 2016. 10. 25. · 2012 tipac...

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