TBA Law Blog


Posted by: Julia Wilburn on Jul 23, 2024

Tennessee Attorney General Jonathan Skrmetti and 13 other state attorneys general on Monday sent a letter to the Federal Housing Finance Agency (FHFA), expressing concerns over its revived pilot program aimed at removing title insurance requirements from certain loans sold to Fannie Mae. In the letter, Skrmetti emphasized the role of title insurance in safeguarding homeowners from fraudulent activities and exploitation, and stated that the pilot solely benefits homeowners with "lower risk" refinance loans, neglecting the needs of first-time and low-income homeowners. In a March 7 statement, FHFA Director Sandra Thompson said, "The title acceptance pilot will make it possible to test whether allowing lenders to sell these refinance loans is a responsible approach to reducing the closing costs incurred by existing homeowners. Lenders will also retain the option to provide evidence of clear title through other options, such as title insurance or an attorney opinion letter (AOL)."