A second vendor is being added to Fannie Mae’s title waiver pilot program, the Federal Housing Finance Agency (FHFA) announced Thursday. Now, instead of just being available through Doma Title Insurance, Westcor Land Title Insurance Co. will be part of the small-scale pilot.
The change was announced in a social media post by FHFA Director Bill Pulte, who oversees Fannie Mae and fellow government-sponsored mortgage giant Freddie Mac. The purpose of adding a second vendor was “in order to further reduce closing costs for homeowners, and foster more competition,” he stated.
In a statement, Westcor said the goal is to modernize the mortgage closing process and reduce costs for consumers and taxpayers. In the creation of this solution, Westcor partnered with Mortgage Connect LP, a policy issuing agent.
“This initiative is distinct in the marketplace as it includes a title insurance-backed product. While this policy departs from the traditional title insurance model in scope, it retains the core benefits and legal assurances that are the hallmark of the industry,” Westcor said in the statement. “This approach ensures that both borrowers and lenders are protected while supporting efforts to deliver real savings at the closing table.”
Mary O’Donnell, CEO of Westcor, said the company was proud to support Fannie Mae’s modernization goals while continuing to uphold the core value of title insurance — protecting property rights. “This pilot proves that innovation and consumer protection can go hand in hand,” she added.
The initial program was enacted in March 2024 in an effort to reduce closing costs. Still running on a small scale, it is currently limited to participating lenders on refinance loans with loan-to-value ratios less than 80% in select geographies.
When the program started, the American Land Title Association (ALTA) called the announcement “a political gesture offering a false promise of savings for homeowners while exposing consumers, lenders and taxpayers to greater financial risk.”
After today’s announcement, ALTA didn’t respond specifically to the FHFA’s change. Instead, in a statement to Scotsman Guide, ALTA CEO Chris Morton observed the group and the title industry “continue to develop innovative solutions using title insurance that support housing affordability and expand access to homeownership while protecting the places people call home.”
“Title insurance and the more than 100,000 title professionals who work in every community across the country are vital to providing certainty in the real estate market and ensuring secure and efficient real estate transactions,” Morton commented.
Westcor, based in Maitland, Fla., is an affiliate of Ardán Inc. Doma is based in Miami.
