Lone Star Title Company of El Paso, Inc.
BEST PRACTICES and COMPLIANCE
Settlement Policies and Procedures
Best Practice #1: Establish and maintain current license(s) as required to conduct the business of title insurance and settlement services.
Purpose: Maintaining state mandated insurance licenses and corporate registrations (as applicable) helps ensure the Company remains in good standing with the state.
Best Practice #2: Adopt and maintain appropriate written procedures and controls for Escrow Trust Accounts allowing for electronic verification of reconciliation.
Purpose: Appropriate and effective escrow controls and staff training help title and settlement companies meet client and legal requirements for the safeguarding of client funds. These procedures help ensure accuracy and minimize the exposure to loss of client funds. Settlement companies may engage outside contractors to conduct segregation of trust accounting duties.
Best Practice #3: Adopt and maintain a written privacy and information security program to protect Non-public Personal Information as required by local, state and federal law.
Purpose: Federal and state laws (including the Gramm-Leach-Bliley Act) require title companies to develop a written information security program that describes the procedures they employ to protect NPI. The program must be appropriate to the company’s size and complexity, the nature and scope of the company’s activities, and the sensitivity of the Consumer information the company handles. A company evaluates and adjusts its program in light of relevant circumstances, including changes in the company’s business or operations, or the results of security testing and monitoring.
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 Company can meet state, federal, and contractual obligations governing the Settlement.
Best Practice #5: Adopt and maintain written procedures related to title policy production, delivery, reporting and premium remittance.
Purpose: Adopting appropriate procedures for the production, delivery, and remittance of title insurance policies helps ensure title companies can meet their legal and contractual obligations.
Best Practice #6: Maintain appropriate professional liability insurance and fidelity coverage.
Purpose: Appropriate levels of professional liability insurance or errors and omissions insurance help ensure title agencies and settlement companies maintain the financial capacity to stand behind their professional services. In addition, state law and title insurance underwriting agreements may require a Company to maintain professional liability insurance or errors and omissions insurance, fidelity coverage or surety bonds.
Best Practice #7: Adopt and maintain written procedures for resolving consumer complaints.
Purpose: A process for receiving and addressing consumer complaints helps ensure reported instances of poor service or non-compliance do not go undiscovered.
In addition to Lone Star Title Co. of El Paso, Inc. and ALTA’s best practices and compliance, Lone Star Title also seeks to remain at the forefront of industry compliance by:
- Completing pre-hire and ongoing employee background screening
- Utilizing encrypted email in order to protect private electronic data
- Maintaining secure facilities and storage facilities in order to protect NPI, including a company-wide clean desk policy
- Company-wide mandatory continuing education
- Completing daily account reconciliation using Rynoh Live© software
- Utilizing the latest in transaction management software, RamQuest©
- Ongoing communication with many lenders through the collaborative information portal, Closing Insight©
- Employing an in-house TREC certified CFPB Education Instructor
Lone Star Title Company of El Paso, Inc. commits itself to providing a compliant and positive real estate settlement experience by following the American Land Title Association’s Best Practices, which can be found HERE.
For a more comprehensive version of our Best Practices, please contact us.
These policies and procedures are for all of Lone Star Title Company of El Paso, Inc. In an effort to address lender concerns it is the intent of the Company to be in full compliance with state and federal laws related to every area of our business. The procedures outlined here are a high level summary of controls, further detailed in written company policies. These policies and procedures will ensure that the Company adheres to the Consumer Financial Protection Bureau’s (CFPB) guidelines and the seven standards recommended by ALTA.
Click HERE for more information on the CFPB regulations coming October 3rd, 2015.