FORCE

2 TheFiveStar.com | CoalitionConnection and xml data transmissions, the risk of exposing Non-public Personal Information (NPI) unless well-pro- tected and secure is significant. "is risk demands an enterprise-wide business intelligence that can address physical security, restricted access, regular employee screening, network security and disposal of NPI. Other imperative policies should address a disaster management plan, compliance with the company's in- formation security program as well as oversight and audit plans. BEST PRACTICE 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. Training in the specific compo- nents of title production via well- documented learning management systems which can incorporate any applicable laws or regulations should be standard protocol. En- suring that staff has timely access to geo-specific regulatory changes is critical to delivering the expected results for risk mitigation. BEST PRACTICE Adopt and maintain written procedures related to title policy production, delivery, reporting and premium remittance. "e well-organized and capable title information supplier should be able to demonstrate appropriate procedures for production, delivery, and quality to ensure title compa- nies can meet their legal and con- tractual obligations to lenders and servicers. "is is best accomplished by state-of-the-art workflow technology able to manage custom operational demands and to insert micro-task based routines which reflect unique expectations of the end user. "e ability to conduct forensic audits on orders, imple- ment track-able corrective action programs or offer custom reporting should be established capabilities. BEST PRACTICE Maintain appropriate professional liability insurance and fidelity coverage. An enterprise-level title information provider should offer at least $1 Million in Errors and Omission coverage ensuring the financial capacity to stand behind their professional services. Beyond base level E&O coverage, the most progressive title data providers may offer supplemental liabil- ity programs which run with the search product for extended terms providing a unique indemnity pro- gram. Often, this extra coverage is evidence of a much higher level of diligence and quality assurance. BEST PRACTICE Adopt and maintain written procedures for resolving consumer complaints. Addressing client or end- consumer complaints must be viewed as a "gift" enabling the title information enterprise to constant- ly assess superior delivery options and provide corrective action steps for improving the integrity of the finished product. Tracking the frequency, type and origin of any service gaps helps to inform the organization of emerging weak- nesses and focus resolution efforts efficiently. Applying these broad ALTA Best Practices standards to each component and supplier in the default or origination process is a vital process to assessing the end- to-end risks that might otherwise go undetected when applied only to the prime supplier. Partnering with downstream title data and report suppliers who align their compliance and risk procedures with the client has become far more critical in the new regulatory environment. "ese CFPB and ALTA guidelines will only become more definitive and established over the next few years. Embracing and clearly documenting these concepts today will serve as true differentiators for enterprise- level providers in the future. About the Author: Lee Howlett is EVP-Managing Director of RedVision. Established in 2001, RedVision® is the premier independent national title data, search and preliminary com- mitment provider for local and national clients. RedVision serves over 1,600 customers in the real estate industry, including lenders, title underwriters, title agents, attorneys and settlement/default servicing firms completing over 1.2 million title searches in 2012. RedVision delivers complete, consistent and accurate title searches quickly in each customer's specified format directly into their agency production systems. !e result is a dramatic reduction in title processing time and expense. Visit www.redvision.com or call 973-854-9500 today to learn more. Embracing and clearly documenting these concepts today will serve as true differentiators for enterprise- level providers in the future.

• Cover