Suffolk Reporter

Congressman Andrew R. Garbarino (R-NY-02) has expressed his concerns regarding the new Fannie Mae pilot program announced by President Biden during the State of the Union Address. The program aims to waive title insurance requirements for certain refinances. Garbarino, a Member of the House Financial Services Committee, criticized the decision, stating that it is a misguided move that could have negative implications.

In a statement released after the announcement, Garbarino said, "The announcement from President Biden during his State of the Union on the approval of a pilot program to eliminate lender’s title insurance from Federally-backed loans is a misguided reversal of a decision made by FHFA and Fannie Mae last year after bipartisan disapproval."

Garbarino emphasized the importance of title insurance in protecting consumers, lenders, and the real estate ecosystem. He argued that instead of undermining title insurance, policymakers should promote it to safeguard homebuyers and lenders. Garbarino highlighted the risks associated with the GSEs taking on too much risk during the financial crisis and stressed the need for critical protection through title insurance for loans purchased by Fannie Mae and Freddie Mac.

The Congressman also referenced H.R. 5837, the Protecting America’s Property Rights Act, which he introduced on a bipartisan basis to ensure that all loans purchased by Fannie Mae and Freddie Mac have the necessary protection of title insurance.

While acknowledging the need for policymakers to address housing affordability challenges, Garbarino warned that the pilot program could harm homebuyers and lenders in the future. He urged a focus on real solutions to increase housing supply and make homeownership more accessible.

Garbarino's stance reflects concerns about the potential consequences of deviating from established practices in the real estate and mortgage industries.