Posted on 03/16/2024 2:06:34 PM PDT by AbolishCSEU
The Biden administration unveiled a new program on Thursday aimed at alleviating the financial burden on homeowners by slashing closing costs on select mortgages, reviving a proposal that faced opposition from the industry in the past. The initiative targets a significant expense associated with closing on a mortgage: title insurance. In a pilot program, Fannie Mae will waive the title insurance requirement on mortgage refinancings it acquires from certain lenders, according to a report by The Wall Street Journal.
This move reignites a clash with the industry regarding the cost and necessity of title insurance and aligns with the White House's broader objective of dismantling obstacles to homeownership, the Journal reported. The program was announced shortly before Biden's State of the Union address.
(Excerpt) Read more at insurancebusinessmag.com ...
As a buyer is there ever a situation you don’t need title insurance?
“alleviating the financial burden on homeowners “
Biden and his gang caused the problems with forced high energy prices driving higher inflation and thus higher interest rates.
So in an election year they a\try to pander to homeowners with this lame-brained scheme rather undoing their failed policies.
Rather than removing closing costs (which protect the new homeowner) why not reduce or eliminate taxes and local fees (amazingly high in some locales) instead?
This is a gift to the real estate fraudsters.
Having worked for a Title Insurance company many years ago, I can assure you that you do NOT want to eliminate Title Insurance. A cloudy title will completely ruin your day.
Bad idea.
Isn’t this a requirement from the Lender? Why would Fedzilla need to intervene?
This sounds like the first step towards ending private ownership of real estate.
If you buy something, you don’t really know if you own it.
I don’t recall the cost of a title insurance policy to be a significant part of a mortgage transaction ...
That’s a plausible thought, when it comes to this crew running things.
Property tax should be eliminated immediately. It’s a corrupt criminal burden to all homeowners.
That’s exactly it. And their war on mom and pop landlords is ridiculous.
I bought a place with cash, had it surveyed, bought title insurance. Sold it seven years later, but not easily. The surveyor had made a big blunder. The title was given based on themat survey. Took a while to straighten out. Good thing I had title insurance.
It is ... for the seller
themat = that
Who will pay if the title is bad?
Who will pay if the title is bad?
That’s the idea behind title insurance.
The seller is guaranteeing the title is good by providing a bond for the buyer’s purchase price.
Title insurance is a scam.
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