ALTA has officially released its updated Best Practices 4.2, outlining new expectations for title professionals across seven key areas of transaction security, compliance, and service. While some updates reflect long-standing industry trends, others introduce more specific requirements—particularly around identity verification, wire procedures, and documentation.
This guide breaks down what’s changed and what you can do to meet the new requirements with confidence.
Table of contents
- What are ALTA Best Practices 4.2?
- What’s new in ALTA 4.2?
- How to meet ALTA’s 4.2 expectations—pillar by pillar
- Frequently asked questions
- Final thoughts
What are ALTA Best Practices 4.2?
The American Land Title Association (ALTA) Best Practices framework is designed to help title companies and real estate attorneys protect their clients, follow legal and regulatory requirements, and deliver consistent service.
The latest update, released in August 2025, reflects growing concerns around identity theft, business email compromise (BEC), data privacy, and disbursement risk. It builds on the existing framework while providing more specific guidance around verification processes, audit trails, vendor oversight, and post-closing responsibilities.
What’s new in ALTA 4.2?
ALTA Best Practices 4.2 introduces updates across all seven pillars. Key changes include:
- Identity verification is now a formal program, with expectations to:
- Train staff on detecting impersonation and social engineering schemes.
- Validate government-issued IDs (including foreign).
- Match individuals to their ID using additional data or biometric checks.
- Establish protocols to identify and respond to suspected fraud.
- Written wire transfer procedures must include clear processes for:
- Verifying wire instructions through an independent channel.
- Performing daily reconciliations of escrow accounts.
- Documenting disbursements and authorization steps.
- Notarization and signing professional oversight now includes:
- Vetting notary credentials.
- Managing approved RON platforms.
- Ensuring compliance with company instructions and WISP requirements.
- Information security and vendor oversight align more closely with WISP guidelines, including:
- Password and access management.
- Timely software patching.
- Vetting service providers who access or store NPI.
- Policy issuance and remittance timelines are now clearly defined:
- 30 days for issuing policies.
- 45 days for remitting premiums.
Complaint tracking must follow a standardized process, tied to the individual transaction.
Want a simpler way to stay compliant?
Closinglock supports ALTA’s updated Best Practices—like secure identity verification, independent wire instruction procedures, and audit-ready documentation.
With the right tools in place, you can meet new requirements without slowing down your workflow.
How to meet ALTA’s 4.2 expectations—pillar by pillar
Here’s what’s new by Pillar—and what you can do now to stay compliant.
Pillar 2: Escrow trust account controls
What’s new:
- Wire transfers must follow documented procedures and be independently verified.
- Disbursements require proper authorization, recordkeeping, and reconciliation.
- Escrow accounts must be balanced daily.
- Any system used to transmit wire instructions should meet strict data security standards.
What you can do:
- Replace manual or email-based steps with secure platforms that enable independent verification.
- Use digital payment solutions that meet good funds requirements and reduce reversal risk.
- Automate audit trails and authorization records to support reconciliation.
Pillar 3: Information security and vendor management
What’s new:
- Written Information Security Programs (WISPs) must include:
- Multi-factor authentication
- NIST-aligned password policies
- Secure software and system maintenance
- Ongoing employee training
- Vendors must be selected, reviewed, and monitored based on their ability to protect NPI.
What you can do:
- Use platforms with SOC 2 Type II certification and encryption at rest and in transit.
- Limit access to sensitive data using least-privilege principles.
- Maintain records of vendor assessments and risk mitigation plans.
Pillar 4: Identity verification and document integrity
What’s new:
- Identity verification is now a defined program under Best Practices. You must:
- Train staff on buyer, seller, and borrower impersonation fraud.
- Validate government-issued IDs, including foreign passports.
- Use additional methods—like database matching or biometric verification—to confirm identities.
- Establish protocols to flag and respond to suspicious activity.
- Notarization procedures must include controls for credential checks and RON platform approvals.
What you can do:
- Use ID verification tools that layer government ID analysis, non-public data checks, and selfie/liveness detection.
- Treat externally notarized documents as “at risk” and review accordingly.
- Keep signing instructions, credentials, and final documents within a centralized, auditable platform.
- Ensure all access and signing activity is securely logged.
Pillar 5: Policy production and remittance
What’s new:
- Final title policies must be issued within 30 days of recording.
- Premiums must be remitted within 45 days of issuance.
- Supporting documentation must be accurate, complete, and available for audits.
What you can do:
- Streamline pre-closing steps (like identity and payoff verification) to reduce post-closing delays.
- Centralize document handling, policy generation, and reporting in one platform.
- Maintain digital logs that capture key transaction events.
Pillar 6: Insurance coverage
What’s new:
- Maintain appropriate E&O, cyber, and crime insurance.
- Review coverage annually with your broker to ensure alignment with risk.
What you can do:
- Use controls that actively reduce exposure to fraud, cyberattacks, or disbursement errors.
- Document those practices as part of your underwriting discussions.
Pillar 7: Complaint intake and resolution
What’s new:
- Complaints must be:
- Tracked from intake through resolution.
- Tied to individual transactions.
- Routinely reviewed and analyzed for process improvements.
What you can do:
- Use a file-based system where all documents, communications, and verifications are attached to the transaction.
- Maintain a clear audit trail of resolution steps and timelines.
Want to simplify ALTA 4.2 compliance?
If you’re looking for a platform that already supports these requirements—from identity verification and wire protection to secure documents and audit trails—Closinglock can help.
Frequently asked questions
Do I need to completely overhaul my processes?
If you already follow strong security and documentation practices, 4.2 likely reinforces what you’re doing. Focus on closing any gaps in wire procedures, identity verification, and post-closing records.
Is biometric verification required for identity checks?
Not required in every case, but highly recommended. ALTA encourages using multiple verification methods—such as ID scanning, database matching, and selfie/liveness detection—depending on risk level.
What does “independent wire verification” mean?
It means confirming wire instructions through a communication channel separate from the original one. If you received instructions via email, for example, you should verify them through a phone call or secure system.
How do I evaluate third-party platforms or services?
ALTA released a companion guide: “Vetting a Vendor for Identity Verification”. Look for platforms that:
- Are SOC 2 Type II compliant.
- Use encryption and MFA.
- Maintain clear audit logs.
- Limit data access and storage appropriately.
What are the deadlines for policies and remittances?
Final title policies must be issued within 30 days of recording, and remitted within 45 days of that date. Keeping accurate and complete records is key to meeting both deadlines.
Final thoughts
You already do the hard work of protecting your clients and staying compliant. ALTA 4.2 builds on that foundation—giving you a clearer framework to reinforce the trust you’ve earned.
With the right tools and secure workflows in place, meeting these new expectations isn’t about doing more. It’s about doing what you already do—efficiently, consistently, and with even greater peace of mind.
Ready to see how Closinglock supports ALTA 4.2?
From identity verification to wire protection, document handling, and audit-ready records—Closinglock is purpose-built to help you meet these new requirements with ease.