Fannie Mae announced last week that it will allow an alternative to title insurance to be used when closing on a home loan, a move its partner in the effort says will save consumers “a considerable amount in closing costs.”

The GSE has partnered with Voxtur Analytics Corp. to deliver a fully compliant alternative to title insurance through Voxtur’s Attorney Opinion Letter (AOL) program.  

The AOL provides an attorney’s opinion of title backed by transactional liability insurance that follows the loan into the secondary market and is issued by AM Best A Rated carriers. Provided in partnership with established real estate law firms in the industry, the AOL allows lenders to offer a low-risk alternative to title insurance.  

“Fannie Mae has identified closing costs as a barrier to homeownership. Our Voxtur AOL program immediately and directly reduces those costs, maybe opening the door to homeownership a little wider for more Americans,” said Jim Albertelli, CEO of Voxtur.

Voxtur currently offers AOL in select states, through strategic partnerships with lenders and service providers and plans to take the offering nationwide in the coming months.      

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