Unregulated Title Insurance Alternatives

As a result of Equitable Housing Finance Plans announced earlier this year by the Federal Housing Finance Agency, both Fannie Mae and Freddie Mac are now accepting written attorney opinion letters in lieu of a title insurance policy under limited circumstances.

Background

• ALTA Summary of Alternative Title Products and the Risk to Lenders
• ALTA Alternatives to Title Insurance Increase Lender Risk (October 18, 2022)
• ALTA Letter to FHFA Outlining Concerns (September 6, 2022)
• ALTA Coverage Comparison Charts Outlining what the Loan Policy provides vs. AOL with a liability wrap
  • Coverage Comparison
  • Summary Comparison
• ALTA Presentation to NAIC Title Task Force (August 2022)
• Fannie Mae: Selling Guide Announcement (April 6, 2022)
• Freddie Mac: Single Family Seller Servicer Guide re: Opinions of title (certificates of title) (September 1, 2022)

Articles

• Freddie Mac Expands Use of Attorney Opinion Letters (May 8, 2024 - CLTA)
• CLTA Focuses on Attorney Opinion Letters (February 20, 2024 - CLTA)
• Fannie Mae's Report on Acceptance of Attorney Opinion Letters and its Title Cost Reduction Pilot (May 16, 2023 - CLTA)
• Members of Congress Outline Concerns of Harmful Title Insurance Alternatives in Letter to FHFA (October 24, 2022 - Financial Regulation News)
• VA Requirements for Title Insurance and Attorney Opinion Letters (October 18, 2022 - ALTA)
• ALTA Informs FHFA About Risk of Using Attorney Opinion Letter Alternatives (October 18, 2022 - ALTA)
• Fannie Mae Wants to Pedal an Alternative to Title Insurance: What Could Possibly Go Wrong? (October 19, 2022 - Seeking Alpha)
• Will these zero-down loans for homebuyers doom real estate again? (November 17, 2022 - Orange County Register)
• The truth about attorney opinion letters (November 29, 2022 - National Mortgage News)

Informational Pieces

• Podcast: HousingWire Daily re: Attorney Opinion Letters (April 18, 2023)
• Win-Win-Win: 3 Benefits of Issuing the ALTA Homeowner’s Policy of Title Insurance (OLTA, July 31, 2023)
• ALTA's Resource Page:  Unregulated Title Insurance Alternatives