Mandatory Title Insurance and Increased Oversight for Mortgage Agencies.
This law introduces new rules for Fannie Mae and Freddie Mac, requiring that conventional mortgages they purchase for 1-to-4 family homes must include title insurance protecting the priority of the lien. This effectively makes title insurance mandatory for most conventional home loans, potentially increasing closing costs for homebuyers but ensuring property rights protection. Furthermore, these agencies face increased government oversight for launching new financial products.
Key points
Title Insurance Requirement: Fannie Mae and Freddie Mac must require title insurance for most conventional mortgages they purchase, impacting closing costs for borrowers.
Increased Government Oversight: The agencies must obtain prior approval from the Federal Housing Finance Agency (FHFA) and the Treasury Secretary before launching any new financial programs or products.
Expired
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