Fannie Mae to Issue Request for Proposal to Identify Potential Suppliers for Participation in the Title Acceptance Pilot

On March 7, 2024, FHFA announced the intention to explore a pilot that would allow lenders to forgo a lender’s title insurance policy or attorney opinion letter (AOL) on a small population of refinance loans sold to Fannie Mae in an effort to reduce closing costs for borrowers.  Since that announcement, Fannie Mae has been working with FHFA to develop a Title Acceptance pilot framework and has received increased interest from title and settlement service and technology providers seeking to participate in the pilot. 

In response to that interest, Fannie Mae announced today that it will issue a Request for Proposal to identify potential suppliers to participate in the Title Acceptance pilot.  The Request for Proposal, which will be issued by the end of the second quarter, will provide Fannie Mae the opportunity to evaluate interested industry participants for potential inclusion in the pilot that have viable technology solutions for managing title-related risk and reducing closing costs for borrowers.