Title Insurance Reduction?
A summary from a March 7, 2024 article in The Title Report
President Biden is calling on federal agencies to take all available actions to lower costs for consumers at the closing table and help more Americans access homeownership. That includes but is not limited to policies and pilots approved by the Federal Housing Finance Agency (FHFA) to waive the requirement for lender’s title insurance on certain refinances.
Consumers closing costs generally represent a substantial affordability barrier to purchase or refinance a home. The acceptance pilot will waive the requirement for lender’s title insurance or a legal opinion on certain low-risk refinance transactions where there is confidence that the property is free and clear of any prior lien or encumbrance.
The Pilot currently is only set to impact the lender’s title policy or AOL and does not impact a borrower’s title risk, since it only applies to certain refinance loans where the borrower has title to the property already.