June 19, 2012
CLTA representatives met with CDI staff from the Financial Surveillance Division to discuss the frequency and cost of UTC audits. The Department acknowledged the cost concern and is willing to explore options to reduce costs. The increase in audits have been the result of several factors, including impaired assets, unresponsiveness to CDI requests, and audit anomalies identified by CDI.
CLTA and CDI will explore eliminating some of the redundancies by scheduling audits so that CDI can “build on” recent audits, creating a standardized list of documents and information to be provided to the CDI in advance, and sharing of documents digitally so that the CDI auditor can perform desk audits.
The CDI suggested that a UTC reach out to the CDI if it is at risk of falling below minimal net worth requirements so that the CDI can assist the UTC early in the process.
In addition, the CDI has committed to working with CLTA and member companies to provide better training of CDI auditors regarding how the title industry works and to find ways to streamline the auditing process in order to reduce costs and redundancies.