29 Hoosier Banker December 2014 Follow Up The last step to knowing whether we are “doing it on time and doing in right” is to monitor successes and deficiencies – not through a full audit, but by reviewing internal practices that monitor and account for the successes. “It ain’t over” until that last step is complete. ALTA Best Practice No. 5 certainly asks us to “do it on time and do it right,” but the concept is even more basic: We are charged with finishing the job for which we were paid. We are compensated in advance for the post-closing process to be completed. How we prioritize this part of the real estate transaction is up to us; however, it does require that we make it a priority. t and premiums are remitted to the underwriter in a timely manner to meet statutory, regulatory or contractual obligations. • Report policies (including a copy of the policy) to underwriter by the last day of the month following the month in which the insured transaction was settled; • Remit premiums to underwriter by the last day of the month following the month in which the insured transaction was settled. Unlike Part 1 of ALTA Best Practice No. 5, the lender is not likely to weigh in on the timely payment for the policy, except to the extent that it inhibits the production of the policy. As long as the lender receives its title insurance policy within 30 days, the lender is not likely to assume the role of being the title underwriter’s bill collector. Additionally, it is an expectation of consumers that the money they pay for the title insurance premium actually makes it to the title underwriters in a timely manner. Post-Closing In many offices, there is a chair, table, file cabinet or even a room of real estate files that are in the stage of “post-closing.” The very term would seem to indicate the file is complete. However, with a nod to Yogi Berra the file is not complete ’til it’s over. In order to complete the real estate settlement process, it is important to complete the post-closing process, including the issuance of the title insurance policy and remittance of the premium. It is not acceptable to the lender or the client to get the file to a point where their pressure points are satisfied, but the process is not fully complete. Written Policies We all have policies and procedures in place that address fundamental items such as “do it on time, and do it right,” but in many instances policies and procedures are not written. Instead they are second nature, continually evolving with experience. While written policies and procedures should never replace that which requires a professional touch, they are required to demonstrate that we have the knowledge, experience and controls to deliver a quality, professional and ethical service. In writing the real estate settlement policies and procedures, we need to keep in mind those points that are not mentioned in the ALTA Best Practices, but are an expectation, including: • Conflict check; • Review of the contract or loan commitment; • Title examination; • Review of the legal description; • Preparation of the title commitment; • Preparation of the settlement statement; • Performing the closing conference; and/or • Disbursement. For more information about the ALTA Best Practices and how to comply, please visit www.alta.org/ bestpractices, or contact Karen Brittain of Investors Title Insurance Company at 419-577-5900, email: kbrittain@invtitle.com.
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