ALTA defines the settlement process as:
The process of completing a real estate transaction in accordance with written instructions during which deeds, mortgages, leases and other required instruments are executed and delivered, an accounting between the parties is made, the funds are disbursed and the correct documents are recorded with the appropriate entities.
ALTA Best Practice #4 states:
Adopt standard real estate settlement procedures and policies that help ensure compliance with Federal and State Consumer financial laws as applicable to the settlement process.
The reasoning behind it is:
Creating policies and trainings that are effective and appropriate for employees, helps the company stay up to date with state, federal and contractual obligations governing the settlement.
Agencies have procedures in place and training takes place on an ongoing basis. In order to be compliant, those informal trainings need to be written down. If you are ever audited, you need to be able to point to a document that says “This is what we do” and “we did it on these dates”
Learntitle has a course pending that will explain all of the ALTA Best Practices. As soon as NJDOBI approves it, we’ll let you know.