Safe Without Title Insurance?

[Caroline Gerardo]

Fannie Mae and Freddie Mac are searching for methods to open homeownership to low income borrowers. (This is not for investors) There is a trend to use attorney opinion letters rather than title insurance. The title insurance industry was built on the concept of reducing risk for lenders and homeowners. The title company searches history, pulls recordings, looks for clouds, clears up messy problems, then offers insurance to homeowners and lenders.

Attorney Opinion Letters are being floated as an alternative to title insurance as title insurance is one of the largest costs to transferring title.

Let's talk about this... Some investors on here talk about how they decided not to use title insurance. Some investors actually pull a preliminary title report, review it and decide not to pay for the policy and fly on their own. How has this worked for you when #selling?

How do #wholesalers wiggle around #probate #liens and funky deed transfers?

#Voxtur Analytics Corp. (TSXV: VXTR; OTCQB: VXTRF) announced, in response to changes to the Fannie Mae Single Family Selling Guide released today (SEL-2022-03, April 6, 2022), that it offers a fully compliant alternative to title insurance through its Attorney Opinion Letter (AOL) program.

“The promise of technology has largely been lost in the mortgage industry and little has been done to reduce costs for consumers,” said Jim Albertelli, CEO of Voxtur. “Fannie Mae has identified closing costs as a barrier to homeownership. Our Voxtur AOL program immediately and directly reduces those costs, maybe opening the door to homeownership a little wider for more Americans.”

Storm on the horizon or an opportunity?

Caroline Gerardo  NMLS 324982 This is not a endorsement of Attorney Opinion Letters but have you used them? What was the difference in the cost? Title insurance is regulated and disclosed. Eventually this will be regulated by the #CFBP - states and Federal Government. State by states laws vary.