The American Land Title Association (ALTA) published ALTA Best Practices Framework ver. 4.0 with an effective date of May 23, 2023. Title companies can begin implementing the new Framework whenever they are ready, but note that any assessments performed after the effective date should use the 4.0 Framework.
According to ALTA's announcement of the updated Framework, "As the ALTA Best Practices Framework: Title Insurance and Settlement Best Practices document is the guiding document for agents and direct operations to both optimize and improve their business, these revisions have been made with the specific objective of allowing agents and direct operations to continually improve their practices and procedures to ensure financial, data security and operational stability, and to provide lenders and other constituents with the assurances that their needs are being fulfilled by these efforts."
A number of sections of the Framework received significant updates in this version, including:
ALTA has also published a number of supporting documents: the Best Practices Assessment Procedures, which is available to the general public, and the Internal Assessment Report and Letter and the Third-Party Assessment Report, which are only available to ALTA Members and non-members who have purchased access to the Best Practices collection. ALTA will provide additional updated supporting documents, which will provide further guidance in implementing Best Practices, in February.
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