When people think of the title insurance industry, what often comes to mind is its core product – title insurance policies that protect the property rights of homeowners and lenders. But it may surprise many to learn that title and settlement professionals do much more than conduct title searches, issue policies, and process claims.
As an industry, our commitment to safety goes beyond title insurance policies. Behind the scenes, title and settlement professionals collaborate with partners across the real estate industry and all levels of government to protect consumers and strengthen communities.
We are proud of our strong track record of advocating for policies and programs that remove barriers to home ownership.
Expanding Access to Digital Closing
At the beginning of the pandemic, we saw a need to increase access to digital home closings, as our industry deemed necessary. The title industry led the way in collaborating with industry partners to expand access to digital closings through remote online notarization (RON), which has enabled thousands of homebuyers to conduct their real estate and mortgage transactions through the innovative use of technology solutions. Have helped to complete safely and securely. ,
Now, three years later, more than 40 states have passed laws allowing RONs, helping many people, including those in underserved and underbanked communities, homebuyers with disabilities, and active-duty members of the military who Carry out important financial transactions.
Preventing Wire Fraud and Helping Wire Fraud Victims
Every year, unsuspecting homebuyers fall prey to a scam called real estate wire fraud, where fraudsters trick them into depositing their downpayment and closing costs into a fraudulent account. Title and settlement professionals are working tirelessly to combat wire fraud, working with government agencies and industry groups to educate consumers and real estate professionals about the dangers of these scams, how to prevent them, and What to do if you or someone you know becomes a victim.
Recently, the FBI released a report that summarizes its efforts to combat business email compromise (BEC) scams and real estate wire fraud by working with partners to identify the criminals and dismantle their organizations.
The report was inspired by ALTA’s efforts to include language in various House and Senate appropriations reports over the past two years, calling on relevant agencies to report on efforts to combat BEC and wire fraud and to raise awareness and address the threats. It was directed to collaborate with industry partners for
Fight Against Unfair Fee Agreements
Recently, there has been an increase in the filing of unfair real estate fee agreements in property records, so-called non-title recorded agreements for personal services (NTRAPS). These NTRAPS create barriers and increase the cost and complexity of financing or transfer of real estate.
Elderly homeowners are especially at risk, as they may have trouble understanding the long-term financial implications of these agreements.
As an industry, we stand united against these unfair fee agreements. A subgroup of ALTA’s State Legislative/Regulatory Action Committee worked with national stakeholders to draft a model state bill to both prohibit the recording of unfair service agreements and make existing agreements unenforceable. This bill is being considered in many states across the country.
Providing affordable housing opportunities to the needy people
ALTA launched the ALTA Good Deeds Foundation in 2020 with the goal of strengthening the communities where title professionals work. Since then, the Foundation has awarded more than $568,000 in grants to 97 community nonprofits in 36 states and Washington, D.C. The majority of grants have been directed to organizations that provide affordable housing opportunities, particularly to low- and moderate For low-income, minority families.
When natural disasters or humanitarian crises occur, the Foundation also provides emergency grants to those in need of food and shelter.
Identifying solutions to address discriminatory contracts
The existence of discriminatory racial and ethnic stipulations in title deeds and other official property documents has caused significant harm to countless Americans. The title industry is a thoughtful partner in addressing discriminatory contracts and working to end housing discrimination.
At the federal level, ALTA has supported Sen. Tina Smith’s Mapping Housing Discrimination Act, which would help fund research into discriminatory covenants in land records.
ALTA also formed a working group to examine major state legislative approaches to address the existence of discriminatory contracts – which previously prohibited the sale or lease of property based on race, ethnicity or religion.
Addressing the assets of heirs – a major obstacle to wealth creation
Much land is often passed from one generation to the next without a will, resulting in loss of land and preventing heirs from receiving the benefits that homeownership provides. ALTA supports the Equal Apportionment of Heirs Property Act (UPHPA), which has been enacted in 22 states and will be introduced in more states during the 2023 legislative session. The Bill sets out measures to help those who have inherited property and retain ownership.
ALTA has also brought together industry and outside experts to discuss various ways that industry and government can address the issue of heir property, including determining the amount of heir property, estate planning tools and resources. How to take better advantage of, and how to expand the reach. Programs and services for people with estate heirs.
our work is not over
Beyond title insurance, the title insurance industry is committed to protecting homeowners and making one of life’s greatest wealth-building opportunities and investments – the purchase of a home – a reality for more homes in America.
