TELL CONGRESS: TITLE INSURANCE PROTECTS HOMEOWNERS AND LENDERS

In a complicated housing market, it is more important than ever that consumers have every tool available to them to protect the most important purchase they will ever make, their home. Unfortunately, one tool that provides critical safeguards for consumers – title insurance – is currently under attack by regulators. 

Earlier this year, the Federal Housing and Finance Agency (FHFA) proposed a plan to waive the requirement for lender’s title insurance on certain refinances. This is a misguided proposal that may end up hurting the very homeowners FHFA believes they are trying to help. 

The American Land Title Association recently reported that one-third of all claims paid out by title insurers are for things that cannot be found in a public records search. Title insurance policies protect the homeowner from losing a property due to problems that are often not discoverable during a title search, including: 

• Documents executed under false, revoked or expired powers of attorney 
• Undisclosed heirs 
• Gaps in chain of title 
• Conveyances in violation of public policy 
• Misinterpretation of wills and ancillary instruments 
• Liens 
• Clerical mistakes, also known as “scrivener’s errors” 
• Fraud/forgery 
  ... and much more.

In addition, when refinancing, title insurance serves a critical role in protecting lenders against unknown factors, such as a judgment or lien that may have occurred since the loan’s origination. Without a new policy, the lender’s investment is at significant risk. 

DON'T PUT HOMEOWNERS AT RISK

The FHFA is sending a concerning message to homeowners – promising savings on closing costs while exposing them, their lenders, and taxpayers to greater financial risk.

USE YOUR VOICE!

Using the form on this page, you can send a prewritten message to your Members of Congress, asking them to keep protecting homeowners and lenders by continuing to implement the title insurance requirement. 

DON'T WAIT – ACT NOW!

If you agree with the position of Anywhere, enter the missing information on this page for the prewritten message and click ‘Send Message’ to encourage your Member of Congress to stand up against this misguided policy.