Defining ALTA Best Practice Approaches

As the American Land Title Association’s (ALTA) Best Practices are fast becoming an industry standard, it is important for title and settlement agents to understand the types of recognized engagements that accounting practitioners can perform and that mortgage lenders will accept. The American Institute of Certified Public Accountants (AICPA) released non-authoritative Technical Questions and Answers that describe four types of acknowledged engagements: examinations, reviews, agreed-upon procedures, and consulting engagements. Some lenders may also consider allowing a title agent’s self-certification in some instances.

PYA provides all four types of engagements for, and on behalf of, title and settlement agents. The following table provides a comparison of each engagement type and the level of confidence with which lenders may consider each.