Government Pushes Forward with Controversial Program That Could Cost Homeowners Their Homes

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News Flash

Fannie Mae Doubles Down on Title Insurance Waiver Program

Despite fierce industry opposition, the FHFA just expanded Fannie Mae's controversial title insurance waiver program.

On July 11, the Federal Housing Finance Agency announced Westcor Land Title Insurance Company would join as the second provider in the initiative.

The program allows eligible homeowners refinancing their mortgages to skip purchasing a new title insurance policy — potentially saving some closing costs in exchange for taking on the risk of title failure.

But are the lower closing costs worth the risk to already vulnerable home buyers? Critics argue the program exposes both lenders and homeowners to significant risks from undiscovered title defects.

Remember: Title insurance specifically protects against defects like liens or errors in public records. Foregoing title insurance leaves homeowners at risk of complete loss of their property. But hey, at least the administration can say they are reducing closing costs.

America's Housing Crisis by the Numbers: 4.7 Million Homes Short

The math is simple but staggering: America needs 4.7 million more homes than it has.

According to Zillow's July 9 analysis, we're facing the most significant housing shortage on record — the culmination of nearly two decades of underbuilding since the Great Recession.

What does this shortage look like in real life?

• 8.1 million families currently "doubled up" — sharing homes with unrelated individuals because they can't find or afford their own place

• Just 3.4 million homes sitting vacant and available for rent or sale

The pandemic construction boom helped, but not nearly enough to close the gap between population growth and available housing.

The consequences? Escalating costs that price out millions of buyers and renters, creating a competitive market that benefits sellers but strains everyone else.

While some areas report increases in unsold inventory due to high prices and mortgage rates, the big picture remains clear: we simply don't have enough roofs to go around.

The real challenge ahead isn't just building more homes — it's building them fast enough to matter for today's locked-out buyers, not just tomorrow's.

Sources: [Source], [Source], [Source], [Source], [Source]

More You Should Know

• Construction Jobs Rise Amid Challenges: The construction industry added 15,000 jobs in June, bringing the year-over-year total to 121,000, yet it continues to face significant hurdles with 245,000 open positions and rising material costs. [Source]

• Commercial Real Estate Mixed Signals: Commercial real estate markets are showing varied performance in July 2025, with data centers and multifamily sectors remaining strong while office markets face continued pressure amidst growing tariff uncertainties impacting supply chains and investment strategies. [Source]

• Realtor.com Adds Tax Appeal: Realtor.com has partnered with Ownwell to launch a new tool that allows homeowners to monitor and appeal property tax assessments directly through its platform, aiming to help them potentially reduce one of their largest annual expenses. [Source]

• Construction Rebounds Mid-Year: The construction economy is experiencing a mid-year resurgence in 2025, driven by year-over-year growth across 12 nonresidential sectors including power, airports, and manufacturing, with rapid expansion also seen in data center construction. [Source]

• Rates Drop, Apps Jump: Mortgage application volume surged 9.4% last week as 30-year fixed mortgage rates fell to their lowest level in three months, prompting a significant increase in both purchase and refinance applications. [Source]

• Housing Recovery Stalls: Capital Economics projects no clear path to housing market recovery, with mortgage rates remaining above 6.5% through 2025, resulting in weak existing home sales and modest home price increases without a correction. [Source]

• Housing Inventory Grows Again: The U.S. housing market continued its rebalancing in June with active inventory surging 28.9% year-over-year for the 20th consecutive month, leading to homes spending five days longer on the market. [Source]

• Housing Affordability Remains Out of Reach: According to the NAHB's 2025 analysis, 57% of U.S. households, totaling 76.4 million, are unable to afford a $300,000 home due to conventional underwriting standards that limit housing costs to 28% of income, exacerbated by a 6.5% mortgage rate. [Source]

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