2014 Vol. 98 No. 6

22 HќќѠіђџȱ юћјђџ Ѣћђȱ2014 ',5(&7256 6(1,25 0$1$*(0(17 When you go to the hospital for an operation, it is understood that the doctor should have a medical license in order to perform the surgery. When you drive down the road, you expect that the driver coming toward you in the oncoming lane has a valid driver’s license. The same is true when providing title Š—ȱœŽĴ•Ž–Ž—ȱœŽ›Ÿ’ŒŽœDZȱ ‘ŽȱœŠŽȱ Š”Žœȱ‘ŽȱꛜȱœŽ™ȱ’—ȱŸŽĴ’—ȱŠȱœŽ›Ÿ’ŒŽȱ provider. The state determines who should hold a license to perform title and/ ˜›ȱœŽĴ•Ž–Ž—ȱœŽ›Ÿ’ŒŽœǯȱ ȱŠ•œ˜ȱœŽœȱ forth requirements and examines applicants. These requirements vary by state, but could include: (1) a law license issued and regulated by the state bar, (2) a license issued and regulated by the department of insurance, (3) both, or (4) none of the above. Some states require other licenses, œžŒ‘ȱŠœȱ‹˜—œȱ˜›ȱ—˜Š›¢ȱŒŽ›’ęŒŠ’˜—ǯȱ These requirements are set forth by the various state regulators and are included in American Land Title Association (ALTA) Best Practice ˜ǯȱŗǯȘ Once appropriate licensing is ŠĴŠ’—Žǰȱ™›˜Ÿ’—ȱ‘Šȱ¢˜žȱ‘ŠŸŽȱ’ȱ’œȱ simple. Note that if you are properly licensed in your state to provide title Š—ȱœŽĴ•Ž–Ž—ȱœŽ›Ÿ’ŒŽœǰȱ¢˜žȱ‘ŠŸŽȱ Š•›ŽŠ¢ȱŒ˜–™•’Žȱ ’‘ȱ‘Žȱꛜȱ˜ȱ‘Žȱ seven pillars of professionalism that comprise ALTA’s Best Practices. Best Practice No. 1 states: Establish and maintain current license(s) as required to conduct the business ˜ȱ’•Žȱ’—œž›Š—ŒŽȱŠ—ȱœŽĴ•Ž–Ž—ȱ services. Purpose: Š’—Š’—’—ȱœŠŽȱ mandated insurance licenses and corporate registrations (as applicable) helps ensure the company remains in ALTA Best Practice No. 1 — Licensing Third-party risk management has become a focal point for regulators with Ž¡™ŽŒŠ’˜—œȱ˜ȱŽ—œž›Žȱ‹Š—”œȱŠ›ŽȱœžĜŒ’Ž—•¢ȱ–’—’–’£’—ȱ›’œ”ȱ˜ȱ•˜œœǯȱ œȱŒ˜––ž—’¢ȱ banks continue to seek guidance on adopting risk management practices, the best ™›ŠŒ’ŒŽœȱ˜ěŽ›Žȱ‹¢ȱ‘Žȱ –Ž›’ŒŠ—ȱ Š—ȱ ’•Žȱ œœ˜Œ’Š’˜—ȱǻ Ǽȱ’•Žȱ’—œž›Š—ŒŽȱŠ—ȱ œŽĴ•Ž–Ž—ȱŒ˜–™Š—¢ȱ’ŸŽȱž’Š—ŒŽȱ˜ȱ‘Ž•™ȱŽ—œž›Žȱ‘Žȱ™›˜ŽŒ’˜—ȱ˜ȱŒ˜—œž–Ž›œȱž›’—ȱ real estate transactions. ȱ ȱ˜ěŽ›œȱœŽŸŽ—ȱœŠ—Š›œȱȯȱ”—˜ —ȱŠœȱALTA Best Practicesȱȯȱ‹¢ȱ ‘’Œ‘ȱŽŠŒ‘ȱ bank should measure its service providers. The best practices are: licensing; escrow ŠŒŒ˜ž—ȱŒ˜—›˜•œDzȱ™›˜ŽŒ’˜—ȱ˜ȱŒ˜—ꍮ—’Š•ȱ’—˜›–Š’˜—Dzȱ˜••˜ ȱŽŽ›Š•ȱŠ—ȱœŠŽȱ consumer laws; timely delivery of title policies; maintain appropriate insurance; and addressing consumer complaints. During the next few months, Hoosier Banker will be featuring a series of articles by Investors Title Insurance Company. The articles will outline the seven standards that Š›Žȱ‹Ž’—ȱ’–™•Ž–Ž—Žȱ‹¢ȱ’•Žȱ’—œž›Š—ŒŽȱŠ—ȱœŽĴ•Ž–Ž—ȱŒ˜–™Š—’Žœȱ—Š’˜— ’Žȱ˜ȱ‘Ž•™ȱ –Š—ŠŽȱ›’œ”ȱ˜›ȱŒ˜—œž–Ž›œȱŠ—ȱ‹Š—”œǯȱ ‘’œȱꛜȱŠ›’Œ•Žȱ’—ȱ‘ŽȱœŽ›’Žœȱ˜ŒžœŽœȱ˜—ȱ‘Žȱ‹Žœȱ practice of licensing. Trusted. Partner.

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