Registered Closing Agent

Standards and Best Practices for Closing Agents

Secure Insight, a leading risk management and compliance platform for mortgage lenders, supports and encourages all Closing Professionals to implement comprehensive internal policies, procedures, and safeguards. These practices are essential to maintaining trust, ensuring regulatory compliance, and fostering confidence among lenders, borrowers, and all stakeholders in the real estate transaction process.

To that end, all closing agents who successfully complete the Secure Insight vetting process and are listed in their national database agree to adhere to the following set of Best Practices, which serve as the foundation for ethical and compliant closing operations:

1. Only Licensed, Insured, and Trained Professionals Conduct Closings

The integrity of any real estate transaction depends on the qualifications of the closing professional. Secure Insight mandates that only individuals who are licensed in their jurisdiction, covered by Errors & Omissions insurance, and properly trained in closing procedures are permitted to facilitate closings. This standard protects all parties involved and ensures that transactions are conducted with accuracy and accountability.

2. Maintain Professionalism and Courtesy at All Times

Every borrower deserves to be treated with respect and professionalism. Closing agents must demonstrate courteous behavior toward borrowers, real estate agents, lenders, attorneys, and all others involved in the transaction. Professional demeanor enhances the client experience and contributes to a smooth and stress-free closing process.

3. Confirm Borrower Identity Before Proceeding

No closing should ever proceed without proper verification of each borrower’s identity. This is a critical step in preventing identity theft and mortgage fraud. Closing agents must inspect valid government-issued photo identification and cross-reference it with the transaction documents to ensure all parties are who they claim to be.

4. Timely Return of Closing Documents and Funds

All executed documents and any lender-required funds must be returned via overnight courier within 48 hours of the closing. This timeline excludes weekends and federal bank holidays. Prompt return of the complete closing package ensures the lender can fund the loan, disburse funds appropriately, and finalize post-closing procedures without delay.

5. Report Suspicious or Improper Activity Without Delay

Closing professionals are on the front lines of mortgage fraud detection. They are expected to immediately report any red flags or improper behavior observed at the closing table. This includes:

• Undisclosed payments made outside of the official settlement statement

• Off-the-record deals or “back room” arrangements

• Unusual payment methods such as multiple checks or money orders not issued by the borrower

• High-value cash transactions

• Rapid resale or contract flipping without justification

Immediate communication with the lender in these instances protects everyone involved and helps stop fraudulent activity in its tracks.

6. Avoid Conflicts of Interest in Legal Representation

In transactions involving attorneys, Secure Insight requires that an attorney should not represent both the buyer and seller unless both parties are fully informed and provide written consent. This practice avoids potential conflicts of interest and helps maintain impartiality and fairness throughout the transaction.

7. Do Not Alter Settlement Statements Without Approval

The HUD-1 Settlement Statement or Closing Disclosure (CD) is a legal document that must be handled with extreme care. Under Secure Insight standards, no amendments, changes, or modifications may be made to these documents without prior written authorization from the lender. Unauthorized changes may lead to compliance issues, delayed closings, or potential legal consequences.

8. Protect Borrower Privacy and Personal Information

All borrower data—including names, addresses, social security numbers, and financial information—must be treated as strictly confidential. Closing agents are required to implement secure storage, data protection policies, and privacy procedures to safeguard this information from unauthorized access, loss, or misuse.

9. Be Prepared and Knowledgeable

Closing agents must come to each appointment fully prepared, having reviewed all relevant documents and lender instructions in advance. They must also be ready to answer reasonable questions from the borrower regarding mortgage terms, document content, and next steps. This promotes borrower understanding and confidence in the process.

10. Accommodate Borrower Decisions Respectfully

If a borrower chooses not to proceed with a closing—for any reason—it is the duty of the closing agent to handle the situation professionally. The agent should take reasonable steps to accommodate the borrower’s decision and immediately inform the lender. Supporting a borrower’s right to make informed decisions is key to maintaining ethical standards.

At American Real Title, we believe that maintaining these standards is not just a requirement—it’s a responsibility. Our commitment to Secure Insight’s Best Practices ensures our clients can depend on us for closings that are secure, efficient, and conducted with the utmost professionalism.

If you have questions about our protocols or how we support closing agents, realtors, and lenders, contact us today at 239.768.0144 or visit americanrealtitle.com for more information.