ALTA BEST PRACTICES

Smith.Sholar.Milliken.PLLC certified “Best Practices” Compliant

Smith.Sholar.Milliken.PLLC was one of the first law firms in Tennessee to be certified as compliant with ALTA’S “Best Practices” in 2015. We continue to maintain that certification each year. Our certification was provided by Pershing, Yoakley & Associates, P.C., a certified public accounting firm which performs audits on a national basis for settlement service firms.

Best Practices is a series of guidelines designed to protect consumers, promote quality service and meet legal and market requirements.

The American Land Title Association (ALTA) “Best Practices” were implemented to provide a uniform standard of high competency for closing attorneys and title companies in the areas of licensing, protection of client funds and non-public information, compliance with federal and state consumer finance laws, title insurance policy production and delivery, maintenance of proper professional liability and fidelity insurance coverage, and resolution of consumer complaints.

Financial institutions are responsible for making sure that closing attorneys and title companies closing their mortgages comply with consumer protection laws. Non-compliance can result in fines, fees and penalties being levied against the financial institution; thus lenders are seeking closing firms with the “Best Practices” certification out of necessity.

In addition to the Best Practices certification requirements, the Consumer Financial Protection Bureau (CFPB) issued a final rule (effective August 1, 2015) requiring lenders to use all new mortgage disclosure and closing forms. These forms have been designed by the CFPB to make it easier for borrowers to identify crucial information such as their interest rate, monthly payment and costs to close the loan.

“I am pleased to be able to assure our friends in the real estate industry that they should not anticipate any disruptions as the August 1, 2015 date arrives and the transition from the HUD-1 to the new closing disclosure goes into effect.” Brian L. Smith