FHFA’s Pilot to Waive Lender Title Insurance on Refis Faces Opposition

HousingWire, March 7, 2024–Flávia Furlan Nunes and Brooklee Han
President Joe Biden’s new plan to lower housing costs includes a pilot program that waives the requirement for lender’s title insurance on certain refinance transactions, according to the White House. The plan was announced during his 2024 State of the Union address on Thursday night.

However, that’s a controversial topic for the mortgage industry and it’s already facing resistance from trade groups. Regulators believe reducing title requirements would cut closing costs, but title and mortgage companies challenge the argument and point to elevated risks.

Following the White House announcement, Mortgage Bankers Association President and CEO Bob Broeksmit, CMB, said the trade group has “significant concerns that some of the proposals on closing costs and title insurance could undermine consumer protections, increase risk, and reduce competition.”

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