American Land Title Association

The American Land Title Association (ALTA) is the national trade association representing more than 6,400 title insurance companies, title and settlement agents, independent abstracters, title searchers and real estate attorneys. Its members conduct title searches, examinations, closings and issue title insurance that protects real property owners and mortgage lenders against losses from defects in titles.

Logo of the American Land Title Association, founded in 1907

ALTA exists to help its members excel in a changing business and regulatory environment. To accomplish its mission, ALTA advocates on behalf of its members’ and the industry’s interests, provides education and information to members, offers networking opportunities, and creates and promotes professional industry standards.

ALTA members, which operate in every county of the United States, range from small, one-county operations, to large national title insurers in the united states. Ninety-seven percent of ALTA’s member companies are considered small business. Overall, around 70 percent of the workforce in the title industry is female. ALTA is based in Washington, D.C.

Overview

The American Land Title Association was founded in 1907 as the American Association of Title Men (AATM). During its 1913 convention, a group of title insurers organized the title insurance section under the name of the “Title Insurance and Guaranty Section” and adopted by-laws for its functioning. At the convention of 1914, the Executive Committee appointed a committee to establish the Title Examiner’s Section. In 1924, the association renamed itself the American Title Association and changed its name again in 1962 to the American Land Title Association.

  1. ALTA has developed many business tools over the years to help its members compete and excel in a changing business and regulatory environment. In 2013, the association unveiled its Title Insurance and Settlement Company Best Practices. These best practices help members highlight policies and procedures the industry uses to ensure a positive and compliant real estate settlement experience. The seven main best practices urge title and settlement professionals to:
  2. Establish and maintain current license(s) as required to conduct the business of title insurance and settlement services.
  3. Adopt and maintain appropriate written procedures and controls for Escrow Trust Accounts allowing for electronic verification of reconciliation.
  4. Adopt and maintain a written privacy and information security program to protect Non-public Personal Information as required by local, state and federal law.
  5. Adopt standard real estate settlement procedures and policies that ensure compliance with Federal and State Consumer Financial Laws as applicable.
  6. Adopt and maintain written procedures related to title policy production, delivery, reporting and premium remittance.
  7. Maintain appropriate professional liability insurance and fidelity coverage.
  8. Adopt and maintain procedures for resolving consumer complaints

In 2017, ALTA developed the ALTA Title & Settlement Agent Registry, which is a national database of title settlement agents. The ALTA Registry helps mortgage lenders confirm that they’re working with the correct title agent, settlement company or real estate attorney. Every title agent office location is identified by a unique ALTA ID, allowing quick verification. Each entry is also fully confirmed by title insurance underwriters. Using the ALTA Registry, mortgage lenders can increase accuracy, reduce production expenses, combat fraud and improve compliance. The Registry also identifies companies that offer Remote Online Notarization (RON) closings. These closings allow homebuyers to review, sign and notarize documents online during mortgage closings. A listing in the Registry is free to any title or settlement company.

In addition, ALTA has been a leader in providing education and awareness about business email schemes and wire transfer fraud. According to the FBI, Incidents and losses due to real estate wire fraud continue to increase. The FBI’s 2019 Internet Crime Report shows there were 11,677 victims in 2019 with $221 million in losses. This compares to 11,300 reported victims and $150 million in losses in 2018. Those targeted by a scheme are encouraged to file a complaint with the FBI. To help raise awareness, ALTA founded the Coalition to Stop Real Estate Wire Fraud in 2019.[1] in 2019.

ALTA created industry resources to help members including an Outgoing Wire Preparation Checklist and Rapid Response Plan for Wire Fraud Incidents. ALTA also has developed many tools and resources to help members educate others about the dangers of wire fraud.

ALTA members take great pride in serving their customers and supporting their local communities. Their dedication was highlighted following the onset of the COVID-19 pandemic in March 2020. Deemed essential businesses by the U.S. Department of Homeland Security, ALTA members have developed innovative and safe ways to continue to make the American Dream come true. From drive-thru to digital closings, the industry’s dedication is allowing families to close on new homes or take advantage of low interest rates by refinancing their mortgages. In addition to helping facilitate the transfer of property throughout the pandemic, ALTA members nationwide continue to donate and volunteer to support those in need.

To constantly improve real estate and mortgage transactions, ALTA works with many other groups including the National Association of Realtors (NAR), Mortgage Bankers Association (MBA), American Bankers Association (ABA), Mortgage Industry Standards Maintenance Organization (MISMO) and Property Records Industry Association (PRIA), among others. ALTA also works with many government agencies to help promote homeownership and fair housing for all. Some of these agencies include the Consumer Financial Protection Bureau, U.S. Department of Housing and Urban Development, Federal Housing Administration and Federal Housing Finance Agency.

Helping facilitate the nationwide adoption of digital closings. ALTA and the MBA developed model legislation that provides the framework for any state to adopt a remote online notarization (RON) process. RON allows transactions that require signatures and a notary seal to be conducted remotely with the aid of online audio and video technology.

ALTA also has been at the forefront of data privacy, having developed Principles for Data Privacy Laws. The principles recommend the development of a single, national standard to help protect consumer private information uniformly and consistently while maintaining an efficient homebuying and selling experience. Key aspects of the principles include exemptions for entities already subject to the Gramm-Leach-Bliley Act, personal information that is already publicly available and business-to-business relationships. In addition, the standards say data privacy laws should recognize the need for businesses to share personal information needed complete a transaction. Consideration also should be given to the impact on small business, with respect to the cost of compliance relative to the risk of consumer harm, the principles say. Other aspects of the standards discuss data breach notifications, a safe harbor and the right to cure.

Governance

The 11-member ALTA Board of Governors is responsible for creating association strategic priorities, managing the financial health of the association and overseeing the work of more than 40 committees.[2]

Policy Forms

The ALTA standardized forms establish the “gold standard” when it comes to title insurance policy forms. ALTA has developed the standardized title insurance policy forms since 1929 by offering the ATA Loan Policy. The first standard owner’s title insurance policy was approved by ATA in 1959.

ALTA’s Policy Forms Committee reviews, creates or otherwise amends the title insurance forms that are or will be promulgated by the association. The committee is composed of representatives of several title insurance companies that are members of the ALTA. The policy forms have been amended several times over the years to meet the needs of customers.

In 2009, ALTA launched an initiative requiring all title insurance companies to have a license to issue an ALTA title insurance policy. A license to use ALTA’s policy forms is free to all ALTA members. Companies that are not members of the association will be required to pay an annual licensing fee of $195 to write on ALTA policy forms. There is an Occasional Use Waiver is available for those companies, during the previous calendar year, wrote title insurance on 50 or fewer transactions.

Standardized title policies lubricate the entire real estate transfer process, allowing all parties involved to experience the fastest, most reliable and least expensive conveyancing system in the world. The Government Sponsored Entities Fannie Mae and Freddie Mac require mortgages to have title insurance to be sold on the secondary market.

Specializations

ALTA developed a National Title Professional Designation (NTP) program to recognize land title professionals who demonstrate the knowledge, experience, and dedication essential to the safe and efficient transfer of real property. The NTP provides a format for land title professionals to demonstrate their knowledge, experience, and efficiency in, and dedication to, the land title industry. The NTP represents a measure of achievement and commitment to career development. Click here to view the NTP Directory.

Consumer Outreach

ALTA continuously attempts to educate consumers about the benefits of title insurance the closing process. ALTA has a dedicated consumer education website, Home Closing 101, dedicated to this effort. The website informs consumers about what to expect during the closing process, closing options and closing costs explained. There’s also a section that explains why a consumer should purchase an owner’s title insurance policy, examples of real-life property disputes, explanation of different parts of the policy, cost of title insurance and how to file a claim. The website also features a tool to help consumers find ALTA members that offer title insurance and closing services in their area.

To help companies educate consumers about title insurance and the closing process, ALTA developed the Homeowner Outreach Program. There are also resources in Spanish. ALTA members can utilize an online portal, ALTAPrints.com, to customize, and print or download these education materials.

Lobbying

In 1973, ALTA created the Title Insurance Political Action Committee (TIPAC), which raises money to help elect and re-elect candidates to Congress who understand and support the issues affecting the title industry. TIPAC received $40,000 in its first year. Today, TIPAC raises on average $250,000 per cycle.

ALTA also connects its members to members of Congress through the Title Action Network (TAN), which is ALTA’s grassroots organization promoting the value of the land title insurance industry. Professionals signed up with TAN receive action alerts for relevant state and federal issues.

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References
  1. "Coalition to Stop Real Estate Wire Fraud". Retrieved 2019-10-16.
  2. "ALTA – About ALTA – Board & Governance". ALTA.org. Retrieved 2015-05-15.
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