Part of the checking traces back to lenders. CFPB guidance on service providers (Compliance Bulletin 2016-02, still listed as current CFPB guidance when checked in September 2026) expects the large banks, large credit unions and nonbank companies it supervises to oversee their service providers, including requesting and reviewing their policies, procedures, internal controls and training materials. ALTA says its Best Practices exist partly to support oversight programs in mortgage lending and settlement. That is why a lender may ask a title office how it manages vendors, and why the office then asks you.
ALTA Best Practices is a voluntary framework from the American Land Title Association (version 4.2, effective August 2025 and still the current version when checked in September 2026), and Pillar 4 covers signers. For third-party signers the office retains, it calls for evidence of current state licensure where required, or a recognized and verifiable industry designation; E&O insurance and a notary surety bond where state law or the title insurer requires them; a written acknowledgment that the signer will comply with the company's instructions and its written information security program; and confirmation that the signer uses training and tools to check ID. Because signers see nonpublic personal information (NPI), ALTA's FAQ says the office's service-provider checks under Pillar 3 apply as well.
Two parts of Pillar 4 work in your favor. The framework asks offices to control who the parties sign with, and to treat a document notarized by a signer the buyer, borrower or seller picked as at risk for fraud, which gives offices a reason to keep an approved list. It also lets an office engage a vendor that assumes the job of monitoring and verifying its third-party signers, and ALTA's FAQ says the vendor has to actually agree to it. Offer that in writing and you take a compliance chore off the office's desk.
ALTA's FAQ says the framework sets no minimum E&O amount, so each office picks its own. Ask for the number. The FAQ also names reviewing background checks as one way an office can oversee service providers that see NPI, so put licensure, E&O, bond, background checks, your NPI policy and a signed acknowledgment in one onboarding packet, and send it with your first email.