FORCE

Five Star Government Forum MARCH 25 | Washington, D.C. Default Title Coalition Spring Summit APRIL 16 | Dallas, Texas Legal League 100 Servicer Summit APRIL 17 | Dallas, Texas National Settlement Services Summit JUNE 9-11 | New Orleans, Louisiana VOLUME 2, ISSUE 1 WINTER 2014 By LEE HOWLETT T he emergence, and importance, of Consumer Financial Protection Bureau (CFPB) regulations coupled with the title industry's American Land Title Association (ALTA) efforts to drive a common understanding of best practices enforces all participants in the settlement chain for loan origination or foreclosure/REO transactions to be specifically responsible and accountable, now more than ever. Whether in executing foreclosure/ REO activity or in support of a loan origination settlement, every firm that provides an aspect of the process must be vigilant in supporting the new standards of care. In a very real sense, the "weakest link" in every transaction represents risk to the entire team associated with the experience, quality and integrity of the end client or consumer experience. As these rules are directly ap- plicable to the lender or servicer as the prime party, it is natural that demands are growing for audit reviews and compliance assess- ments from downstream vendors of all types. From these reviews, there is an obvious realization that the quality and capability of supply chain partners to respond with substantive policies and proce- dures is dependent on the scale, structure and experience of the enterprise. Whereas in the past, it may have been acceptable to rely on individuals as suppliers, that approach is not sustainable when traditional risk assessment practices are applied for business continuity, quality assurance, and financial 1 TheFiveStar.com | CoalitionConnection π IN THIS ISSUE ∫ NEW YEAR, STILL NEW COALITION ∫ MEET THE NEW BOARD OF ADVISORS FOR THE DEFAULT TITLE COALITION ∫ A LOOK AT CFPB AND ALTA BEST PRACTICES ∫ CAN I GET A WITNESS? ∫ A LOOK AT CHANGES IN FLORIDA ∫ MCCURDY & CANDLER BEST PRACTICES CERTIFIED π INDUSTRY EVENTS T H E F I V E S T A R D E F A U L T T I T L E C O A L I T I O N Title Coalition .com CFPB Regulations and ALTA Best Practices Demand End-to-End Review of All Production Partners stability as thresholds for qualifica- tion. As shown below, ALTA's best practices can provide a roadmap for assessing the attributes of title data, search and commitment ready pro- viders that match the compliance needs of agents supporting lenders and servicers for transactions. BEST PRACTICE Establish and maintain current License(s) as required to conduct the business of title insurance and settlement services. "e title search provider should be qualified with applicable business licenses and well-versed in the rules affecting title practices in each state for Practice of Law statutes. In ad- dition, the firm should offer demon- strable knowledge of local business practices and industry standards forming the basis for unique title search practices that will be incor- porated into the product delivery. BEST PRACTICE Adopt and maintain appropriate written procedures and controls for Escrow Trust Accounts allowing for electronic verification of reconciliation. While the title search provider does not have a direct role in the escrow function, the quality and comprehensive nature of the data supplied in the reporting is critical to informing the agent's completion of the escrow function. "e integrity of reported amounts due for outstand- ing voluntary liens, judgments, taxes and ancillary municipal liens is vital. BEST PRACTICE Adopt and maintain a written privacy and information security program to protect Non-public Personal Information (NPI) as required by local, state and federal law. Given the complexity of our digi- tal world ranging from eFax, to email

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