• clarifying a duty to fully disclose to consumers separate price information for insurance premium and for the title search and other services


• the prohibition of misuse or commingling of real estate escrow or settlement funds with tight restrictions for deposits and disbursements


• the requirement that title insurance companies actively oversee title agencies writing business on their behalf by conducting annual audits of escrow, underwriting and claims practices


• the prohibition of kickback receipt or payment for referring business and requires full disclosure of affiliated business arrangements


• defining the premium as the risk of loss with necessary expenses and profit from issuing the insurance policies while any other expenses related to title services would be placed in the competitive market
• clarifying standards for licensing and requires continuing education for title agency employees
• clarifying the department’s authority to issue cease and desist orders, injunctions, consumer relief, civil penalties and recovery of investigative costs for violations

However, James R. Maher, ALTA executive vice president, believes strong regulation is the answer. He said ALTA doesn’t currently have a code of ethics. The trade organization abolished the code because it was tied to a never-used grievance process considered ineffective and problematic, Maher said.

“That code had been written many years ago and did not reflect current market practices effectively,” he said. “Given the fact that ours is a regulated industry, it was felt at the time that consumers and competitors, alike, would be better served by an empowered regulator governing market conduct — as opposed to a voluntary membership organization trying to ‘enforce’ a set of high-sounding principles.”

Interestingly, James Maher, ALTA’s executive vice president, admits in the article to having abolished a previously existing code of ethics for one of the nations most important professions. I stand corrected as I have repeatedly accused Mr. Maher of simply misplacing the arcane and worthless document.

For the record: The current mood at ALTA is one that favors regulatory empowerment over a prescribed code of professional behavior.

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  the prohibition of kickback receipt or payment for referring business and requires full disclosure of affiliated business arrangements