‘Bad Politics, Bad Process, Bad Policy’

Due to significant questions and bipartisan opposition from several members of Congress, alongside education and advocacy from ALTA members and industry experts, Fannie Mae last August shelved a title waiver pilot the government-sponsored enterprise (GSE) had under development.

While the pilot wasn’t formally pursued by the Federal Housing Finance Agency (FHFA), during his State of the Union address on March 7, President Biden essentially overrode the FHFA’s independent decision and announced his administration was moving forward with the previously rejected pilot that would waive the requirement for lender’s title insurance on certain refinances.

The proposal is included in Biden’s housing plan under the guise of promoting housing affordability for those most in need. In reality, the pilot only covers certain refinances for higher wealth homeowners, doing nothing for first-time homebuyers.

“The announcement offers a false promise of savings for homeowners while exposing consumers, lenders and taxpayers to greater financial risk,” said ALTA CEO Diane Tomb. “It’s a hollow attempt by the White House to placate Americans’ current economic frustrations. The pilot is simply bad politics, bad process and bad policy.”