NNPA NEWSWIRE — Often misunderstood, title insurance is a product that comprehensively protects homeowners’ property rights and their lenders’ financial interest in a property. It is vastly different than other types of insurance because it is a one-time fee and title professionals do the majority of the work upfront to both examine title issues and rectify any problems found. That is why many homeowners thankfully don’t experience the challenge of a claim that threatens their homeownership – but if they do, title insurance is paramount to protecting their biggest investment.
By Benjamin F. Chavis Jr., President and CEO, National Newspaper Publishers Association
March 21, 2024
During the State of the Union, President Joe Biden spoke eloquently and passionately about one of the Biden-Harris Administration’s key priorities: housing affordability. The President’s proposals included ideas that would boost housing supply and make homeownership more attainable for those that are currently being priced out of the market.
While the vast majority of President Biden’s new proposals would thoughtfully address some of the country’s most pressing issues, one idea that flew under the radar was a proposal about title insurance, a lesser known but vital part of the homebuying and refinancing process.
It was concerning to hear about the proposal – a new pilot program that would waive title insurance requirements for certain qualified homeowners – as one of the ideas being considered by the Administration to improve access to affordable housing. Given that the program – which was previously abandoned by Fannie Mae last year – only applies to higher-wealth individuals who are refinancing properties, should it be a top public policy priority now for The White House?
It is no secret that high interest rates and a low supply of affordable homes stand in the way of homeownership for low and middle-income families and people of color. According to the National Association of Realtors, the gap between Black and White homeownership is worse than it was a decade ago, with the Black homeownership rate at 44.1% compared to the White homeownership rate of 72%.
