Fannie Mae's pilot program, running through May 2026, allows for automated title reviews in certain refinance transactions instead of traditional title insurance. Research by Nigrinis and Zywicki indicates this could lower costs for consumers, enhance competition, and reduce title insurance prices by approximately 10%. States like Texas, Florida, and New Mexico stand to gain significant savings per loan. The program may particularly benefit marginalized groups and older homeowners, though it faces opposition from some state attorneys general and industry allies who fear it will shift risks from insurers to Fannie Mae.
According to the findings, the introduction of automated title risk assessments by Fannie Mae could yield noticeable savings for consumers and stimulate competition in the title insurance market.
The study predicts that Texas homeowners could save an average of $1,692 per transaction, highlighting the financial impact of the pilot program on local markets.
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