Best Practice #4


REAL ESTATE SETTLEMENT PROCEDURES

Best Practice #4: Adopt standard real estate settlement procedures and policies that help ensure compliance with Federal and State Consumer Financial Laws as applicable to the settlement process.

Purpose: Adopting appropriate policies and conducting ongoing employee training helps ensure the Alliance Abstract and Title can meet state, federal, and contractual obligations governing the Settlement.

Alliance Abstract and Title Policies and Procedures for Implementation and Adherence to Best Practice #4: Alliance Abstract and Title’s use of software and technology allows us to track a file through each step of the closing process and provide complete transparency of the work being done on each file. As such, we are able to verify that each part of the closing process adheres to the accurate company procedures and that checks and balances are in place to monitor these procedures.

1. Recording Procedures
Alliance Abstract and Title
i. Obtains proper information required prior to closing.
ii. Reviews legal and contractual requirements to determine Alliance Abstract and Title obligations to record documents and incorporate such requirements in its written procedures.
iii. Submits or ships documents for recording to the county recorder (or equivalent) or the person or entity responsible for recording within two (2) business days of the later of (i) the date of Settlement, or (ii) receipt by Alliance Abstract and Title if the Settlement is not performed by Alliance Abstract and Title .
iv. Tracks shipments of documents for recording.
v. Ensures timely responses to recording rejections.
vi. Addresses rejected recordings to prevent unnecessary delay.
vii. Verifies that recordation actually occurred and maintains a record of the recording information for the document(s).

2. Pricing Procedures
Alliance Abstract and Title:
i. Maintains written procedures to ensure customers are charged the correct current title insurance premium and other rates for services provided by Alliance Abstract and Title . These premiums and rates are determined by a mix of legal and contractual obligations.
ii. Utilizes rate manuals and online calculators, as appropriate, to help ensure correct fees are being charged for title insurance policy premiums, state-specific fees and endorsements.
iii. Ensures discounted rates are calculated and charged when appropriate, including refinance and reissue rates.
iv. Performs quality checks files after Settlement to ensure consumers were charged Alliance Abstract and Title’s established rates.
v. Provides timely refunds to consumers when an overpayment is detected.

3. Processing of Mortgage payoffs
Alliance Abstract and Title :
i. Obtains proper payoff amounts and accurate distribution of proceeds to mortgage payoff’s.