On March 7, just hours prior to the State of the Union Address, the Biden administration announced a plan to lower housing costs, which includes moving forward with a previously-abandoned pilot program that will waive the requirements for lender's title insurance on certain refinances. The administration announced this with zero outreach to the title insurance industry.
Since this pilot program would only benefit high income homeowners with substantial equity in their homes and not first-time homebuyers, many say the announcement is nothing more than political “smoke and mirrors” to look like they are trying to lower homebuying costs during a down economy. In a press release, the American Land Title Association stated, “This misguided effort should only be seen as a purely political gesture that offers a false promise of savings for homeowners when in fact, all it will do is expose consumers, lenders, and taxpayers to greater financial risk.” The waiver program is facing strong bipartisan opposition. While the initial pilot program is meant to only include certain types of refinances, the concern is if and when it might expand to additional loan types.
How can you help? Attend ALTA’s Advocacy Summit, May 6 – 8, 2024 in Washington, D.C. Attendees at the Advocacy Summit will lobby with other delegates from their state on behalf of our industry and express the importance of title insurance for both buyers and lenders. Your voice is the most powerful tool our industry has to fight unregulated title insurance. For more information, contact ALTA at www.alta.org or register for the Advocacy Summit.