A move by the Biden administration to allow some homeowners to refinance their mortgage without paying for title insurance has raised the ire of the title insurance industry, which has fought previous initiatives to relax title insurance requirements.
The pilot program announced Thursday would allow lenders to sell some of the mortgages they refinance to Fannie Mae and Freddie Mac without having to provide independent verification that there are no clouds on the property’s title through a legal opinion or a lender’s title insurance policy.
One of several housing initiatives unveiled by President Biden during his State of the Union address Thursday, The White House estimates it will save thousands of eligible homeowners an average of $750, and up to $1,500.
