A title insurer or agency shall, on a current basis:

1. A. establish and maintain a separate subsidiary ledger for each escrow transaction;
2. B. post all receipts and disbursements from each subsidiary ledger to a control ledger daily and at least monthly, prepare a trial balance of all subsidiary ledgers. The monthly trial balance reconciliation shall be performed by a person who did not perform the receipt and disbursement function; and
3. C. on a daily basis, reconcile the book balance and escrow account balance.

4. D. At least once each calendar month, prepare a three-way reconciliation for each escrow account. Each three-way reconciliation is required to be prepared within 10 business days of the closing date of the bank statement and to be approved by a title insurance agent who did not perform the reconciliation. The reconciliation shall include at a minimum as of the reconcile date:

   1. (1) the bank statement;
   2. (2) reconciliation sheet or summary page with book balance;
   3. (3) outstanding deposits list and list of deposits in transit;
   4. (4) open escrow file listing or trial balance; and
   5. (5) outstanding disbursements list, all as of the reconciliation date.
5. E. Reconciliations and underlying statements, listings and reports shall be preserved in a logical sequence to trace an individual escrow transaction and shall be available electronically.

[13.14.4.9 NMAC – Rp, 13.14.4.9 NMAC, 1/1/2021]