In a significant development for the mortgage industry, attorney opinion letters are now accepted in lieu of title insurance for the majority of mortgages acquired by government-sponsored enterprises (GSEs). This policy change extends to condominium properties as well, providing lenders with more flexibility in managing risk and reducing costs associated with traditional title insurance.
Key points from the announcement include:
– Attorney opinion letters are now an acceptable alternative to title insurance for most GSE-purchased mortgages
– This policy change applies to condominium properties as well, offering greater flexibility for lenders
– Lenders can now choose between title insurance and attorney opinion letters, potentially reducing costs and streamlining the mortgage process.
You can read this full article at: https://www.housingwire.com/articles/freddie-mac-expands-use-of-aols-in-selling-guide-update/(subscription required)
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