Rep. Garbarino Raises Concerns Over Misguided Title Insurance Pilot Program

WASHINGTON, March 9 -- Rep. Andrew Garbarino, R-New York, issued the following statement:

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During his State of the Union Address, President Biden announced a new Fannie Mae pilot program that would waive title insurance requirements for certain refinances. Congressman Andrew R. Garbarino (R-NY-02), a Member of the House Financial Services Committee, released a statement following the announcement:

"The announcement from President Biden during his State of the Union on the approval of a pilot program to eliminate lender's title insurance from Federally-backed loans is a misguided reversal of a decision made by FHFA and Fannie Mae last year after bipartisan disapproval.

"Title insurance plays an important role in protecting consumers, lenders, and the greater real estate ecosystem, including the Enterprises. It should be promoted by policymakers, not undermined. The nation saw the results of the GSEs taking on too much risk during the great financial crisis, and we cannot go down that road again. We should ensure that all loans purchased by Fannie Mae and Freddie Mac have the critical protection of title insurance attached to protect homebuyers and lenders. That is why I introduced H.R. 5837, the Protecting America's Property Rights Act, on a bipartisan basis, to do just that.

"While we all agree that policymakers must do more to address the nation's housing affordability challenges, this pilot program will only harm homebuyers and lenders down the road. We should focus on real solutions to build more housing supply and make the American Dream of owning a home more attainable for all of our constituents."

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Original text here: https://garbarino.house.gov/media/press-releases/garbarino-raises-concerns-over-misguided-title-insurance-pilot-program