FNMA to accept Attorney's Opinion Ltrs in lieu of title ins

[Peter Walther]

Recently I read Fannie Mae has agreed to accept Attorney's Opinion of Title Letters in lieu of title insurance.  I assumed it would be just a matter of time before someone would try to game the system.  United Wholesale Mortgage just announced it would bring attorneys in house to write the opinion for loans it originates.  Me thinks this is not a good idea.

Guide Section 4702.3 (freddiemac.com)



United Wholesale Mortgage (UWM) CEO Mat Ishbia announced three initiatives for brokers at AIME Fuse on Saturday. The most impactful may be an alternative to the traditional lender title process, called TRAC. Ishbia said his company has hired attorneys to review title and closing docs, make sure the title is clear and then help facilitate the closing process.