For most young Americans, buying a house is out of reach. In fact, a recent report found that the median age of a first-time homebuyer reached an all-time high of 38 years old this year. This is not the America that I grew up in, but now, with a much-needed change in leadership across the federal government, I believe we can reverse this trend.
In order to move forward, it is important to reflect on the current administration’s mistakes. History must not repeat itself.
During the State of the Union earlier this year, President Joe Biden showed just how out of touch and out of step his administration’s priorities are with the real issues impacting everyday Americans. Instead of focusing on the barriers to homeownership — inflation, overregulation, and increasing supply — Biden announced a pilot program that would waive title insurance. It’s an idea so bad that only a bureaucrat could have dreamed it up. The idea has, not surprisingly, been met with strong bipartisan opposition.
In any real estate transaction, one of the most important steps is securing a clear title, the legal document that verifies a person’s ownership of property. Title insurance is crucial in this process, protecting both buyers and lenders from unforeseen legal liabilities if title issues arise.
However, the Biden administration decided to target title insurance in its campaign against so-called “junk fees,” suggesting that it is unnecessary. As part of this push, the Federal Housing Finance Agency proposed, and Biden himself championed, a pilot program that would eliminate the need for title insurance in certain transactions.
Without title insurance, buyers and lenders are exposed to risks such as unpaid taxes, undisclosed liens, or fraudulent claims that can lead to costly legal battles or even the loss of a home. Title insurance shields homebuying consumers from these threats, covering legal fees and financial losses. Removing this protection leaves families vulnerable to major expenses that title insurance would have otherwise covered. This is particularly concerning at a time when real estate fraud is on the rise.
Title insurance is an obvious safeguard in real estate transactions, yet this administration wrongly viewed it as just another exploitative charge. But, consider the stakes: title insurance protects millions of Americans from substantial financial risk if issues with the title, such as undisclosed liens or ownership disputes, emerge. Without title insurance, homebuyers and lenders alike could be exposed to potentially devastating costs.
Furthermore, this administration bypassed the legislative process to launch its pilot program, opting instead to push it through the FHFA to avoid public accountability. Keep in mind: the FHFA attempted a similar pilot program in 2023 but had to withdraw it due to substantial public outcry.
Recently, I joined my fellow Real Estate Caucus co-chairs in a letter to FHFA demanding a halt to this program until there can be sufficient vetting and public input. In a slap in the face to American families, the FHFA ignored our letter and allowed companies to move forward with this risky program, thus threatening the housing finance system and homeownership in America.
Starting in January, the Trump administration and the 119th Congress will have the opportunity to actually make a dent in housing affordability and increase the number of single-family homes in the country. Ending the Biden administration’s pilot program on title insurance should be a top priority. Americans deserve real change, not a smorgasbord of ill-informed policy proposals that could end up costing homebuyers and taxpayers more.
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Mark Alford is a U.S. representative for Missouri. He is the co-founder of the bipartisan Congressional Real Estate Caucus and a former real estate agent.
This article was originally published at www.washingtonexaminer.com
