NATNews Blog > November 2015 > ALTA Board Approves Revised CPLs, Decertifies ALTA Endorsement 2-06

    ALTA Board Approves Revised CPLs, Decertifies ALTA Endorsement 2-06

    11/16/2015 4:18:07 PM
    During its Oct. 8 meeting, the ALTA Board of Governors approved two revised closing protection letters (CPLs) and decertified ALTA Endorsement 2-06 (Truth in Lending). The board also approved a joint survey standard developed with the National Society of Professional Surveyors. The comment period for the revised CPLs is open until Nov. 27.
     
    During its Oct. 8 meeting, the ALTA Board of Governors approved two revised closing protection letters (CPLs) and decertified ALTA Endorsement 2-06 (Truth in Lending). The board also approved a joint survey standard developed with the National Society of Professional Surveyors (NSPS), which is the successor to the American Congress on Surveying and Mapping (ACSM). All of these documents may be downloaded from www.alta.org/forms. The comment period for the revised CPLs is open until Nov. 27.

    Closing Protection Letters

    The landscape for residential real estate loan transactions has changed with the adoption of the Dodd-Frank Act and other federal and state laws, the TILA-RESPA Integrated Disclosure Rule, and the required Closing Disclosure.

    With the implementation of the new Closing Disclosure under the TILA-RESPA Integrated Disclosure Rule, it is necessary to revise the ALTA Closing Protection Letter – Single Transaction (04-02-14) and the ALTA Closing Protection Letter – Multiple Transactions (04-02-14) to conform to changes in the law and to modify existing language in the closing protection letters for consistency and clarity. Those changes include:
    • A new heading of “Requirements” for the introductory section
    • Clarification that the assignee of the insured mortgage must be an assignee for value with knowledge
    • Clarification that the coverage relating to defects, liens, encumbrances or other matters in connection with the transaction is provided to the extent afforded in the policy
    • Consistent with the 2011 and earlier CPLs, recognition that there is no obligation to determine the validity, enforceability or effectiveness of a document, except to the extent the policy coverage applies
    • Recognition that the exclusions for particular laws includes the failure of the issuing agent or approved attorney to comply with closing instructions relating to those laws
    • As provided in prior letters, acknowledgment that the company is liable only to the holder of the Indebtedness at the time payment is made
    • Cooperation requirements applicable to the addressee
    • Recital that the letter may not be modified by the issuing agent or approved attorney
     
    ALTA Endorsement 2-06 Truth in Lending
     
    The ALTA Endorsement 2-06 Truth in Lending is decertified effective December 1, 2015. According to ALTA, the form is no longer in demand as an industry standard. The form may continue to be used in the marketplace, but will not be a part of the ALTA Policy Forms collection.
     
    Minimum Standard Detail Requirements for ALTA/NSPS Land Title Surveys
     
    The boards of ALTA and NSPS approved revisions to the Minimum Standard Detail Requirements for ALTA/NSPS Land Title Surveys. The standard is the result of significant work and cross-industry partnership between land title professionals and surveyors. The revised standard will become effective Feb. 23, 2016.
     
    Questions?
     
    If you have questions/concerns or need more information about the forms, contact Kelly Romeo, the staff liaison for the ALTA Forms Committee and Liaison Committee with the NSPS, at kromeo@alta.org or 202.261.2948.