AMERICAN LAND TITLE ASSOCIATION (ALTA) THREATENS TITLE AGENT MEMBERS TO ENFORCE RESTRAINT OF TRADE

In a breath-taking development of restraint-of-trade, against their own title insurance agency membership, in late July 2024 in Deer Valley, Utah, the American Land Title Association (ALTA) verbally threatened their member title agents with revising ALTA's charter for the purpose of prohibiting title agents to participate in any form alternatives to title insurance.

This threat clearly intimidated agents with termination of membership and/or licenses, upon which title agencies rely upon for the operation, growth and diversification of their independently owned businesses. The verbal threats were considered by title agents in attendance as poorly conceived, desperate, extreme and absurd...and clear evidence of anti-competitive and monopolistic business practices.

ALTA's threat to change its charter for punitive purposes, to restrict the use by title insurance agents of diversified products, services or processes, is an overt representation of its intention to engage in anti-competitive behavior…which incredibly…forces their agents to also engage in anti-competitive behavior.? Legal scholars see this conduct as a sure way by which monopolies "purchase" regulatory, legislative and class action lawsuits that as a byproduct makes defendants of title insurance agents.

Title insurance agents whose businesses have been intimidated by ALTA verbal and/or written threats are urged to contact the undersigned.

Here are the facts of FHA, Freddie Mac and Fannie Mae (GSE)-authorized "alternatives to title insurance", which collectively purchase or guarantee $3 Trillion of mortgage loans every year:

1. The April 2022 GSE “Lender Sellers Guide” in which authorizes alternatives to title insurance.
2. The July 2023 GSE “Equitable Housing Finance Program”, which authorizes alternatives to title insurance.
3. The December 2024 GSE “Expansion of the Use and Acceptance of AOLs” authorizes alternatives to title insurance.

Title agents, lenders, loan brokers, loan officers, lawyers, Realtors, home builders and cash buyers are urged to consider iTitleTransfer, LLC's Fully Insured Loan Closing Platform which provides the following fully insured closing functions for one-third the cost of traditional title insurance:

Insured Search, insured Examination, Insured Proprietary Risk Scoring, Insured Curative Services, Insured GSE-Compliant Attorney Opinion Letter, Insured Escrow, Insured Date Down, Insured Document Preparation, Insured eNotary, Insured eSign, Insured Transfer, Insured eRecording and Insured Post-Closing Deed Monitoring.

The author is Theodore Sprink, Founder and CEO of the nation's first and leading provider of alternatives to title insurance: [email protected].

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