These
concerns,
coupled
with
a
new
president,
were
more
than
enough
reason
to
pause
the
pilot
program;
instead,
the
Biden
administration
chose
to
hit
the
gas
pedal.
Now,
it’s
up
to
the
Trump
administration
to
apply
the
brakes
before
state
regulators
are
undercut
and
taxpayers
and

homeowners
find
themselves
at
greater
financial
risk.

Threatening
this
reliable
system,
the

title
waiver
pilot
program
transfers
the
responsibility
of
protecting
property
rights
from
state-regulated
title
insurance
companies
to
Fannie
Mae
—enabling
it
to
function
as
a
title
insurer
without
complying
with
any
state
title
insurance
laws
and
regulations.
It’s
a
blatant
intrusion
into
an
area
that
federal
law
explicitly
placed
under
the
regulatory
authority
of
the
states.

Insurance
directly
impacts
Americans’
financial
stability,
making
it
critical
that
insurance
companies
are
financially
sound,
and
consumer
protections
are
in
place—both
can
only
be
achieved
through
government
oversight
and
regulation.
The
McCarran-Ferguson
Act,
signed
by
President
Franklin
D.
Roosevelt
over
80
years
ago,
gave
states,
rather
than
the
federal
government,
the
primary
authority
to
regulate
and
tax
the
insurance
industry
within
their
borders. 

In
that
time,
states
have
developed
their
own
statutes
and

regulatory
requirements
for
title
insurance
that
cover
underwriting
standards,
regulation
of
conduct
and
unfair
contractual
terms,
and
competition
and
rate
regulation.
Title
insurance
companies
are
also
required
to
establish
and
maintain
reserves
to
protect
policyholders. 

Title
insurance
companies
are
equipped
and
prepared
to
assume
the
risk
if
any
title
issues
emerge.
Now,
that
risk
shifts
to
Fannie
Mae,
a
Government
Sponsored
Enterprise
(GSE),
and
by
extension—the
taxpayers.
With
zero
title
insurance
experience
under
its
belt,
Fannie
Mae
will
be
stepping
well
outside
its
lane.
Taxpayers
shelled
out $200
billion
to
bail
out
the
GSE
the
last
time
this
happened.

Contrary
to
the
view
that
proponents
of
the
pilot
program
hold,
our
industry
is
dominated
by
small
businesses
with
expert
and
dedicated
title
professionals
dedicated
to
protecting
the
property
rights
of
Americans—and
helping

identify
and
collect
$3
billion
in
back
federal
income
taxes,
property
taxes,
and
unpaid
child
support
in
2022
alone.

Small
businesses
are
the
ones
who
will
be
sidelined
by
Fannie
Mae’s
intrusion
into
an
area
that
states
have
successfully
regulated
for
eight
decades. 

The
Biden
administration
rushed
the
pilot
out
of
the
gate
hoping
it
would
show
the
Biden
administration’s
efforts
to
address
affordability,
with
officials

announcing
they
had
revived
the
once-dead
program
only
a
few
hours
before
the
president
was
scheduled
to
mention
it
in
his
State
of
the
Union
speech
in
March.
There
was
also
no
opportunity
for
the
title
insurance
industry
and
other
stakeholders
to
submit
public
comments
on
the
program,
which
runs
afoul
of
the
FHFA’s
rule
for
new
products
and
activities.
There
has
also
never
been
any
data
or
cost-benefit
analysis
of
this
pilot—balancing
supposed
savings
with
increased
risk—despite
repeated
bipartisan
requests
for
such
information

On
Jan.
16,
President
Trump

announced
he
was
nominating
Bill
Pulte
as
the
next
director
of
the
FHFA.
We
look
forward
to
collaborating
with
him
and
the
Trump
administration
to
help
more
people
achieve
and
protect
the
American
dream
of
home
ownership,
while
ensuring
homes
are
protected
with
title
insurance
which
is
the
gold
standard
in
protecting
property
rights
and
strengthening
the
housing
finance
system
and
broader
economy.

After
taking
office,
Trump
issued
an
executive
order
calling
for
emergency
relief
on
housing,
principally
through
a
reduction
of
regulatory
burdens
and
efforts
to
expand
supply.
ALTA
is
committed
to
working
with
the
Trump
administration
on
thoughtful
approaches
to
increase
access
to
homeownership.

But
as
the
Trump
administration
reviews
the
unilateral
actions
of
the
previous
administration
and
the
title
pilot,
it
should
carefully
consider
that
for
the
past
80
years,
states
and
the
title
industry
have
worked
together
to
help
Americans
achieve
their
dream
of
homeownership.
The
pilot
program
upends
that
relationship,
defies
the
state’s
regulatory
authority
over
title
insurance,
and
most
importantly
puts
homeowners
and
taxpayers
in
a
precarious
position.
The
one
thing
it
will
not
do
is
help
solve
affordable
housing
challenges.

Diane
Tomb
is
the
CEO
of
the
American
Land
Title
Association.

This
column
does
not
necessarily
reflect
the
opinion
of
HousingWire’s
editorial
department
and
its
owners.

To
contact
the
editor
responsible
for
this
piece:



[email protected].