May 2, 2024

In This Issue:

  • Freddie Mac Expands Use of AOLs in Selling Guide Update
  • TDI Quarterly Audit Results Published: Dec. '23 - Feb. '24
  • 18 House Democrats Question Biden Administration’s Title Waiver Program
  • ALTA: Title Insurance Matters. Here’s Why.

Freddie Mac Expands Use of AOLs in Selling Guide Update

HousingWire | May 1, 2024
In an update to its selling guide, Freddie Mac announced Wednesday that it is expanding the use of attorney opinion letters (AOLs) in lieu of title insurance.

Under the new selling guidelines, Freddie Mac said it would allow AOLs to be used on “loans secured by a unit in a condo project,” on “loans secured by a property subject to restrictive agreements or restrictive covenants,” and on “loans secured by a property located in all U.S. jurisdictions, unless prohibited by law or identified as an ineligible transaction type.”

Ineligible transaction types include mortgage premises located in tribal areas, cooperative share loans, mortgages secured by a dwelling on a leasehold estate and mortgages secured by a manufactured home, among others.

The changes made by Freddie Mac mirror those made by Fannie Mae in December 2023, when the government-sponsored enterprise (GSE) announced that it would allow AOLs to be used on mortgages secured by a condo and mortgages secured by a property subject to restrictive agreements or restrictive covenants.
 
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TLTA Editor's Note:  ICYMI, TLTA developed a page dedicated to news related to the GSEs' ongoing consideration of use of AOLs in lieu of traditional title insurance. 
 
 

TDI Quarterly Audit Results Published: Dec. '23 - Feb. '24

Texas Department of Insurance | April 29, 2024
The following is a summary of recent TDI audits, violations and enforcement actions from December 2023 through February 2024. Read TDI's complete summary of operations for the quarter, or review key statistics below.            
          
Compliance Audits: TDI's goal is to comprehensively audit agencies at least once every two years. This quarter, TDI conducted 73 audits.          
           
Commissioner Orders: This quarter, TDI signed four (4) Commissioner Orders. 
           
Compliance Audit Results: Below are TDI's most common audit findings for the quarter that ended in February 2024. The numbers below represent how many agencies had an infraction, not the number of times the infraction occurred:
 
Number of Agencies
Category
Description
47
Abstract Plant
Section 2702.053 – Actual receipts and/or disbursements not in agreement with settlement statement or premium split not disclosed.
40
Escrow Accounting
Outstanding checks not cleared timely.
36
Title Bulletin
Title Bulletin No. 160 – All parties receiving portions of real estate commission not disclosed on settlement statement.
31
Minimum Escrow Accounting Procedures & Internal Controls
#16 - Every disbursement not supported by invoice or sufficient other evidence.
30
Procedural Rules
P-21: Schedule D of commitment not in file or premium split not disclosed on commitment.
 
Review Complete Quarterly Audit Report »
 

18 House Democrats Question Biden Administration’s Title Waiver Program

ALTA  | April 18, 2024
A group of 18 Democratic members of Congress sent a letter to President Biden expressing concern with the administration’s program that will waive the requirement for lender’s title insurance on certain refinances.  

The letter—led by Rep. Wiley Nickel (D-N.C.)—highlighted the important and proven role that title insurance plays in protecting homeowners and lenders and the unnecessary risk the title waiver pilot will place on the government sponsored enterprises (GSEs) and the broader housing finance system.
 
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TLTA Editor's Note: TLTA was involved in the production of this letter, and we're pleased to have assisted in securing three Texas Congressmen who signed this letter. ICYMI, TLTA is maintaining a page dedicated to this proposal. 

ALTA: Title Insurance Matters. Here’s Why.

ALTA via HousingWire | April 30, 2024
Last month, the Biden Administration announced the revival of a previously abandoned pilot program that would waive the requirement for lender’s title insurance on certain home refinances – part of a misdirected effort to address housing affordability. Additionally, the CFPB has shortsightedly questioned the benefits and cost of title insurance.

It’s uncertain whether federal regulators are purposefully misleading Americans about the potential savings or just don’t understand how title insurance works. The truth is the cost of title insurance coverage has decreased nearly 8% over the last two decades due to innovation in the industry.
 
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