Refinancing a home loan usually means buying a lender’s title insurance policy, a one-time closing cost that protects the lender against defects in the property’s ownership record. An executive order signed Oct. 22 tells the director of the Federal Housing Finance Agency to consider replacing that policy, on eligible refinances, with an automated title review across the whole country.
The direction is conditional and carries no start date. No homeowner can use a nationwide waiver today, and the order does not say when one would begin.
What does Section 4 of the order say?
Section 4, headed “Reducing Excessive Title Insurance, Especially in the Refinancing of Americans’ Homes,” says the Director “shall, if he determines that it is in the best interests of the Enterprises or the FHFA,” expand the title acceptance pilot into a nationwide ongoing programme. Fannie Mae and Freddie Mac, the “Enterprises,” could then accept an automated title review in place of a lender’s title insurance policy on eligible refinance transactions.
The same section says the Director shall require that cost savings from the programme be passed through to borrowers, and that lenders tell borrowers about those savings. It sets no deadline and puts no figure on what a borrower might save.
What is the pilot being expanded?
The Federal Housing Finance Agency announced the title acceptance pilot in March 2024, under then-Director Sandra Thompson. Its statement said it would waive the requirement for a lender’s title insurance or a legal opinion on certain low-risk refinances, and only where the borrower already holds title to the property.
FHFA’s frequently asked questions put the loan-to-value ratio for eligible loans below 80 percent, limited it to participating lenders in select geographies, and described it as small and time-limited, run by Fannie Mae. Lenders pay Fannie Mae a fee on each loan sold through the pilot. FHFA said at the time that the pilot did not affect a borrower’s title risk and that borrowers could still buy their own policy.
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Which limits would the Director weigh?
The order lists several features the Director is to consider, not require. They are allowing loan-to-value ratios above 80 percent where title risk is low, removing geographic limits, certifying more title providers, and waiving appraisals and income re-verification for limited cash-out refinances that lower the borrower’s monthly payment. It also lists reducing loan-level price adjustments and other fees.
Each of those would loosen a limit of the 2024 pilot or add a further cost cut. None has been adopted, and the regulator has not announced which, if any, it will use. A refinance that does not meet the pilot’s current terms would still need a lender’s policy or another form of evidence of clear title.
The order separates the waiver from a purchase loan. It speaks only of refinances, where the borrower already owns the home and the title history has been checked at least once before. That is the reasoning FHFA gave in 2024 for limiting the pilot to refinances, and a home purchase would still involve a lender’s policy under current practice.
Is a refinance now worth waiting for the programme?
A homeowner deciding between a refinance this winter and one later would be weighing a saving that has no price, no date and no list of lenders. The order does not say how large the title charge is that would be waived, and the cost of a lender’s policy varies by state and loan size.
The programme would apply only to eligible refinances at participating lenders once it exists, so the first practical test is what a given lender quotes. Closing-cost estimates that a lender is required to provide itemise title charges, and the amount shown there is the cost on the table today, with or without any pilot.
The order also says it creates no right or benefit and is to be carried out consistent with applicable law and subject to appropriations. Until FHFA, Fannie Mae or Freddie Mac publishes terms, a nationwide waiver is a direction to a regulator, not a feature of any loan.
Weighing a refinance before any waiver exists?
The expensive mistake is to hold off a sound refinance for a title saving with no start date, or to sign one without reading every closing line. Either way the homeowner pays costs that were avoidable by pricing the loan on today’s terms.
“Cut Your House Costs” is a guide that turns attention to the housing bills that exist now. It includes a lower home insurance bill by shopping and asking for every discount, and the home-cost audit worksheet, which sets each yearly cost of the house beside the others so a refinance can be judged against the whole picture.
Price the refinance with the home-cost audit worksheet guide →
This article was produced with AI assistance and edited for accuracy against the sources linked above.
Warren Cohen is a finance writer based in Phoenix, Arizona, covering personal finance topics including credit, banking, and beginner investing. He earned his degree in business administration from Arizona State University and began his career working in consumer finance, where he gained direct experience with lending and credit systems. He now writes for personal finance websites and fintech platforms, focusing on clear, practical content that helps readers make informed financial decisions.
