This is a continuation from the preceding blog, in which we introduced the topic of lender requirements and ALTA Best Practices adoption.
In order to gauge the lending community’s adoption of ALTA’s proposed assessment approach, ALTA has begun compiling a list of lenders who have sent directives to title agents requiring some degree of proof of Best Practices adoption. Current as of December 17, 2015, the list identifies more than 20 lenders, provides a synopsis of each lender’s requirements, and offers a hyperlink to a copy of the actual lender requirement letter that ALTA has on file. While the compilation of letters and the accompanying chart are helpful resources, they do not provide much insight into critical factors necessary to fully evaluate the trend toward lender adoption of Best Practices standards. In particular, the list fails to provide any information regarding the identified lenders’ relative sizes and the geographic footprints in which they are conducting business. As a result, in its current form, this chart needs to be supplemented with some additional background in order to identify trends that may be helpful to the title industry. As I look closer at the lenders identified on the chart, I will provide my observations on any emerging trends.