Westcor joins Fannie Mae title waiver pilot

Westcor Land Title Insurance Co. is now the second title vendor taking part in Fannie Mae‘s title insurance waiver pilot program. Federal Housing Finance Agency (FHFA) Director Bill Pulte announced the move in a social media post.

The waiver pilot, relaunched by Fannie Mae in March 2024, allows approved mortgage lenders to use an automated title review process to assess title risk during loan manufacturing and prior to loan purchase.

The pilot is limited to certain refinance loans with loan-to-value ratios of less than 80% in certain geographic areas. Doma was the first title insurance firm to take part in the program.

Westcor — the nation’s largest independent title insurance underwriter — is partnering with analytics firm X1 Analytics and Mortgage Connect LP in joining.

“We’re proud to support the (government sponsored enterprises’) modernization goals while continuing to uphold the core value of title insurance — protecting property rights,” Westcor CCEO Mary O’Donnell said in a statement. “This pilot proves that innovation and consumer protection can go hand in hand.

“We’re grateful to Director Pulte and his team at FHFA and Fannie Mae for recognizing that innovation in title can both lower costs and preserve protections while fostering competition.”

Doma also voiced support for Pulte’s announcement.

“It’s exciting to see a major player in the title insurance industry join Fannie Mae’s pilot program, which is saving homeowners money and making the closing process much more efficient,” Doma Technology Chief Operating Officer Wendy Zorick said. “We applaud Director Pulte for his commitment to reducing closing costs for hardworking Americans.”

Industry groups have expressed both cautious support and skepticism — citing the importance of maintaining robust consumer protections as the market experiments with title innovation.

“ALTA 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,” said Chris Morton, CEO of the American Land Title Association (ALTA).

“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.”

When speaking with HousingWire earlier this year, United Wholesale Mortgage and Better Mortgage reported average customer savings per transaction of $1,000 to $3,000 through the use of the title waiver pilot.