I'm not sure if the matter has had any official ruling made by ALTA but I don't think so as such practices are still going on in some areas, like mine

Neighborhoods like Monument Manor, Joshua Tree Highlands, Friendly Hills area -- basically anything south of Alta Loma and relatively close to Park Blvd.

The equity in the property is your prime protection against loss and having a good appraisal is key.Make loans in First Lien Position and make sure you receive an ALTA policy of title insurance insuring your lien position on the property securing your loan.Meet your borrower and do your own physical inspection of the property.

Deed in lieu of foreclosure can not be pre-arranged and still hold water as it could in the past, so I have to disagree with Rick to some extent.Deeds may be deemed effective when executed, filing perfects the deed, in some states it's the race to the courthouse as to priority but, speaking on a national stage, consider ALTA's concerns, which I've posted before.

They want me to use their seller alta title policy.

During closing, the closer from the title company sent me the ALTA Settlement Statement and I was shocked to see ~2K in closing costs deducted from the gross sale price, including over $600 of the title insurance premium.

That is generally listed in Schedule BII of the exceptions of a Standard ALTA policy.

Dodd-Frank is not the only issue, these contracts now have other problems with deed conveyances as seen by ALTA and title examiners, equity being established on statute requiring foreclosure and circumventing foreclosure laws.

This policy also ensures:-Anyone who inherits your title b/c of your death-Your spouse who receives your title b/c of dissolution of marriage-the trustee or successor trustee of your trust or any estate planning entity created for you to whom or to which you transfer title after the policy date-the benefeciaries of your trust upon your death-Anyone who receives your title by transfer effective on your death as authorized by lawI've never seen that language before so it may be either from a ALTA policy form created after I retired in 2019 or possibly from a non-ALTA approved policy. 

Since you haven’t closed on the purchase yet, Here is a tip;If you include on your closing statements (which vary state to state - HUD-1/ALTA statement ) the renovation costs - and have them charged at closing......