Final title policies drafted from the closed file, for your examiner to check before issue.

Today someone on post-closing gathers the commitment as it was marked at the table, the deed and mortgage as they came back from the recorder, and the lender's closing instructions. From those they write each policy: who is insured and for what estate, which exceptions survive, which requirements were met, and which endorsements were ordered. An examiner checks it, it issues through your production system, and it goes to your underwriter.

In the proof of concept, AI writes the first draft. It fills Schedule A and Schedule B of each policy from the closed file, carries each surviving exception with its book and page or instrument number, drops a requirement only where a recorded document or a marked line shows it was met, and sets the endorsements the instructions ask for beside the ones the file shows were ordered. Each line names the page it came from. Anything it can't trace goes on a short list of questions. Nothing is issued, signed, numbered or reported.

The 2021 ALTA Owner's Policy and Loan Policy share a frame but not a Schedule A. The owner's policy names the Insured, the estate or interest insured, who holds the Title and the Land. The loan policy says whose Title the mortgage encumbers and adds item 4, the Insured Mortgage and its assignments, which is where the mortgage that just closed is described, with its recording data once it records. For loans sold to Fannie Mae, its Selling Guide adds that a mortgage naming MERS as nominee is described as the security instrument given to MERS, and that MERS is never the named insured. Both 2021 forms carry an optional Schedule A item that brings in endorsements by naming each one; the 2006 loan policy printed a checklist of endorsement numbers on Schedule A, and the 2021 form dropped it.

Schedule B changes more than it looks. The 2021 forms open it by excepting the terms and conditions of any lease or easement identified in Schedule A, so an appurtenant easement insured there needs no separate exception for its own terms. The loan policy can carry a Part II listing matters the mortgage should sit ahead of, and its Covered Risk 10 insures that priority, subject to any subordination provision in the listed matter; markets that don't use a Part II take an alternate opening. Both forms also gained an exclusion for any discrepancy in area, square footage or acreage, a risk ALTA's own comparison chart says was generally excepted in Schedule B before. A quantity exception copied forward from an older file is therefore flagged for your examiner, never silently kept or dropped.

State rules can decide when a requirement counts as met and when the policy is due. Missouri's rule says a title policy must issue within 45 days after the requirements of the commitment are met, defines meeting them as receiving the documents or finishing the tasks listed in the requirements section or Schedule B-1, and allows a few delays, such as a deed or security instrument filed with the recorder but not yet recorded. Missouri also requires written notice, when a purchase closes with only a lender's policy, that the buyer may still obtain an owner's policy within 60 days of closing. In North Carolina, no title insurance may issue on property in the state until the company has the opinion of a North Carolina attorney, not its own employee or agent, who examined the title. So the draft dates each requirement it shows as met, names the document behind it, notes whether the Missouri notice or the North Carolina opinion is in the copies, and never decides that a policy is due or late.

The loan policy answers to the lender's instructions, and on loans sold to Fannie Mae, to Selling Guide section B7-2-03. For loans originated on or after January 1, 2024 it accepts the 2021 ALTA Loan Policy or an ALTA short form with equivalent coverage, requires an environmental protection lien endorsement such as ALTA 8.1, rules out the creditors' rights exclusion ALTA adopted in 1990, and lets a policy on the 2021 form take effect as of loan closing. ALTA now publishes its short form residential loan policy in a Current Assessments and an Assessments Priority version, and version 3.04 of ALTA's endorsement chart maps which 2006 and 2021 endorsements go with which policy. The draft names the form each file used, lists the instructions' endorsements against those attached, and leaves the choice to your examiner.

Your reviewer will look hardest at the lines that change between commitment and policy. Under the 2021 jacket, a policy issued with a Policy Number and a Date of Policy is valid even when issued electronically or unsigned, so those two lines are checked against the file like any insured line. The draft flags a vesting line that differs from the recorded deed's grantee, a loan policy whose Insured Mortgage has no recording data, an exception kept with no document behind it, a requirement dropped with nothing recorded to clear it, and an endorsement in the instructions that appears nowhere in the file. It also notes whether the owner's policy keeps the optional arbitration condition, now Condition 19 and bracketed so it can be deleted, without choosing either way.

With your reviewer's yes, files closing over the next 30 days or so get draft policies as soon as the recorded documents come back.

A licensed examiner checks every draft and issues each policy through your own production system and your underwriter's process. The AI never signs, numbers or issues a policy, never decides insurability or whether an exception stays, never orders an endorsement, never handles funds or wire instructions, and never contacts a buyer, seller, lender or underwriter.

Scoring goes on through the live month, by the same reviewer, on the criteria written down for the test.