Why This Matters
The Title Waiver Pilot does not eliminate title risk—it shifts that risk away from the regulated title insurance framework and into other parts of the housing finance system. While intended to reduce certain upfront costs on eligible refinance transactions, the pilot raises important questions about consumer protection, transaction certainty, market stability and transparency in how loans are selected and evaluated.
Featured Resources
Research
How Title Insurance Protects Property Rights and the U.S. Real Estate Economy
This First American FAQ explains how the title acceptance pilot would remove lender’s title insurance requirements for certain refinance loans, while underscoring why title defects, lien priority and property rights protections remain critical considerations for homeowners, lenders and the broader real estate market.
Staff Document
Understanding the Cost of Title Insurance
Title insurance is the most effective way to protect the property rights of homeowners and the security of a lender’s mortgage. Historically, Fannie Mae and Freddie Mac (the GSEs) have required a lender’s title insurance policy on loans sold to them. The median cost of title insurance and settlement services is 0.67% of the purchase price.
Advocacy & Policy
ALTA Comment Letter on FHFA Equitable Housing Finance Plans Repeal
ALTA urges FHFA to ensure any new Enterprise activity, product or pilot is developed through a transparent process with meaningful stakeholder input. The letter raises concerns that efforts to eliminate title insurance requirements on certain refinance loans and expand attorney opinion letters could increase risk for consumers, lenders and the Enterprises while reducing long-standing consumer protections.
Resources & Tools
Frequently Asked Questions for Lenders Considering Title Insurance vs. Attorney Opinion Letters
This FAQ helps lenders evaluate the risks of using attorney opinion letters as an alternative to title insurance, including differences in coverage, claims handling, cost, representation and warranty risk, and legal concerns. ALTA emphasizes that title insurance provides broader, regulated protection for lenders and consumers, while AOLs may leave important gaps related to fraud, forgery, closing protection, and title defects that are not discoverable in public records.
FHFA Title Acceptance Pilot FAQs
In March 2024, a Title Acceptance Pilot was announced that waives the requirement for lender’s title insurance on certain refinances. ALTA described the initiative as a policy move that offers a perceived promise of savings for homeowners while potentially exposing consumers, lenders, and taxpayers to increased financial risk.
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News & Insights
Fannie Mae to Expand Title Pilot Program, Pulte Says
FHFA Director Bill Pulte said Fannie Mae will soon announce steps to expand its title waiver pilot program, particularly for refinance loans. The program, launched under the Biden administration, currently applies to select refinance loans with loan-to-value ratios below 80% in certain markets and allows approved lenders to use automated title review processes in place of traditional title insurance. ALTA continues to urge lawmakers and regulators to recognize the critical role title insurance plays in protecting consumers, lenders and the broader housing finance system.
More Members of Congress Urge FHFA to Halt Title Acceptance Pilot
U.S. Reps. Andrew Garbarino (R-N.Y.) and Mike Flood (R-Neb.) became the latest members of Congress to urge the Federal Housing Finance Agency (FHFA) to withdraw the Title Acceptance Pilot.
Don’t be Fooled, the FHFA Title Acceptance Pilot is Simply a Misguided Federal Overreach
During his first day in office, President Trump took aim squarely at the nation’s continuing housing affordability challenge, issuing an Executive Order directing his administration to pursue appropriate actions to “lower the cost of housing and expand housing supply.” This presents a tremendous opportunity to correct a widely recognized mistake of the Biden-led Federal Housing Finance Agency – approving the much-panned Title Acceptance Pilot.
Trump Administration Should Hit the Brakes on Title Insurance Waiver Pilot Program
In the final days of the Biden administration, officials had several policy decisions to make as the president worked to cement his legacy, including whether to move forward with the Federal Housing Finance Agency’s title insurance waiver pilot program. The program would waive title insurance requirements for certain Fannie Mae federally backed mortgage loans. Both Democrats and Republicans on Capitol Hill previously expressed concern that the program would undermine the protection title insurance provides.
Bipartisan Congressional Real Estate Caucus Urges FHFA to Halt Title Insurance Waiver Pilot
Led by U.S. Rep. Lou Correa (D-Calif), Mark Alford (R-Mo.), Tracey Mann (R-Kan.) and Brittany Pettersen (D-Colo.), 17 members of Congress sent a letter on Nov. 18 to FHFA Director Sandra Thompson that said the pilot will inadvertently cause irreparable damage to homeowners and lenders, and potentially leave them without critical protection against financial loss. The four representatives are co-chairs of the caucus.
Why Misguided Calls to Scrap Title Insurance Would Make Homeownership More Costly and Threaten the Economy
Making homes more affordable for Americans is a worthy goal, but targeting title insurance—a one-time premium that is far lower than many other closing costs—would have the opposite effect, explains First American Chief Economist Mark Fleming. That’s because title insurers play a foundational but largely misunderstood role in the real estate industry: enabling the reliable transfer of property ownership.
ALTA Official Tackles Title Insurance Alternatives and Market Share
In a recent episode of “Ten Minute Talks,” HousingWire president Diego Sanchez spoke with Chris Morton of the American Land Title Association (ALTA) to shed light on the future of title insurance, alternative options, regulations, market competition and coverage costs.
House Legislators Urge FHFA Inspector General to Examine Title Waiver Pilot
During a hearing on June 26, House Republicans pressed the Federal Housing Finance Agency’s (FHFA) inspector general to look into the handling of two controversial pilot programs—including a title waiver pilot—that would expand the government’s role in the housing market.