28 Hoosier Banker December 2014 Continued from page 27. Title Insurance Policy Production Within 30 Days of Settlement Part 1 of the procedures set forth by ALTA necessary to comply with ALTA Best Practice No. 5 provides: “Title insurance policies are issued and delivered to customers in a timely manner to meet statutory, regulatory or contractual obligations.” It goes further to suggest that to comply with the “contractual” obligations, it is incumbent upon all to “issue and deliver policies within thirty days of the later of (i) the date of settlement, or (ii) the date that the terms and conditions of title insurance commitment are satisfied.” The ALTA Best Practices define “settlement” as follows: “In some areas called a ‘closing.’ 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/or delivered, an accounting between the parties is made, the funds are disbursed and the appropriate documents are recorded.” Reading the information above closely, we will interpret section (i) to provide a strict deadline that is 30 days from settlement. We may also be hanging onto section (ii), which provides an extension of time: “the date that the terms and conditions of the title insurance commitment are satisfied.” Lest we be inclined to wait until the lender marks the security instrument paid-in-full and returns it for cancellation be aware that waiting for the cancellation would put the burden on the lender to do things in a timely manner, as well. A word of caution: Do not misplace reliance on section (ii). Remember that the lenders are driving this initiative and are not likely to impose a restriction on themselves as part of the process. In fact, while the lenders have not yet endorsed the ALTA Best Practices, they have targeted section (ii) of ALTA Best Practice No. 5 as unacceptable. For all intents and purposes, we should consider the allotted time to have the title insurance policy issued to be 30 days from settlement. In addition, the major lenders are already tracking this metric and know exactly how long, on average, it takes for our office to get the final title policy issued. As these lenders start to fine tune their approved lists, those offices that have a large number of days as their average would likely be easy targets for contraction. Title Insurance Premium Reporting and Remittance While Part 1 of ALTA Best Practice No. 5 was targeted at meeting a known expectation of the lender, Part 2 addresses a known expectation of the title insurance underwriter – to be paid for the title insurance provided. Specifically it addresses premium reporting and remittance. Part 2 of ALTA Best Practice No. 5 requires: Title insurance policies are reported www.equiasalliance.com When it comes to BOLI,We’ve made the Grade! Equias Alliance BOLI can improve your bank’s bottom line! Our BOLI solutions have earned the exclusive endorsement of the American Bankers Association. This endorsement is based on our key strengths, which include: • Number of BOLI Placements Made • Number of Nonqualified Plans Designed • High Client Satisfation Ratings • Experienced Administrative Service Professionals • Thorough BOLI Risk Assessment Reviews High Client Experienced Thorough Todd Andritsch is a registered representative of and securities are offered through ProEquities, Inc., a Registered Broker/Dealer, and member FINRA and SIPC. Equias Alliance LLC is independent of ProEquities, Inc. ©2014 Equias Alliance TODD ANDRITSCH tandritsch@equiasalliance.com 11416 Forest Knoll Circle Fishers, IN 46037 Tel: 317.517.5000 EA-Ad-2014-07-Grade-TAndritsch_7-5x4-75_02ab.indd 1 7/21/14 10:09 AM
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