Netco is proud to announce that on June 15th, 2015 it received its first Certification of adherence to ALTA Best Practices by a 3rd party Certified Public Accounting Firm. The firm issued this certification to Netco as a result of a very exhaustive audit of our adherence to the ALTA Best Practices. A copy of the certification can be downloaded above, along with this Summary of Conclusions Letter and a White Paper Title Industry Best Practices Summary By PYA With these materials, any lender can be confident it has complied with CFPB regulations with regard to using Netco as a provider of title and escrow services. We continue to work with PYA to keep these credentials current.
Background: In 2012, a number of regulatory and market pressures brought scrutiny to the basic integrity of the title insurance industry. There were many stories of title agents involved in misappropriating closing funds or participating in real estate or mortgage fraud schemes. While it was only a small percentage of industry members, the publicity brought attention to industry members qualifications and practices.
One response was for the industry trade association, The American Land Title Association, to formulate Title Insurance and Settlement Company Best Practices, a set of minimum standards for industry members to comply with to improve the quality and integrity of our business. These Best Practices cover areas such as
- Employee and Company Licensing
- Escrow Trust Account Controls
- Privacy and Information Security
- Compliance with Federal and State Consumer Finance Laws
- Written Procedures regarding title policy production, delivery, reporting and premium remittance
- Maintenance of appropriate professional liability insurance and fidelity coverage
- Procedures for resolving consumer complaints
In every instance, Netco meets or exceeds the standards established by ALTA, particularly in the areas of escrow account and personal information security.