Underwriting

Consumers are so concerned about rising costs that they often forego coverage altogether, according to two separate studies from Valuepenguin and Realtor.com.

The U.S. Mortgage Insurers put out a blog promising its members would be ready to accept submissions for coverage which were scored using VantageScore.

April was a mixed bag for title companies, executives said on earnings calls, but some are expecting a stronger market the rest of the year.

The increase in refinance originations in the fourth quarter trickled down to the title insurers, which reported year-over-year gains in new orders.

As homeowners insurance becomes expensive and hard to find, mortgage loan officers should work closely with insurance agents, said Travis Hodges of Viu by Hub.

The private mortgage insurers reported just 5% less business versus the third quarter and 33% more new insurance written over the fourth quarter 2023.

Continued reductions by the Federal Reserve in short-term interest rates should benefit mortgage volume, and thus title insurance activity, Fitch Ratings said.

In the aftermath of the election, a bipartisan group of House members are the latest to ask the FHFA to put the owner's title insurance waiver pilot on hold.

Three of the four largest title insurers were profitable in the third quarter; First American's loss should set it up for future gains, its execs said.

But the purchase business that brings in three times the fee size as refinancings will be the driver of the improvement for the publicly traded title underwriters.

Lenders need to look at both data and algorithms to avoid inadvertent redlining complaints, not just in decision making but customer contact too.

The Biden Administration's title waiver pilot has started a broader discussion on whether the product is worth the money paid or even needed at all and can be replaced by an alternative.

Unintended consequences of shifting the burden for title insurance to the lender could end up harming consumers, several observers said.

The American Land Title Association, which represents the title insurance industry, argued that the program would not cut costs for those who really needed it.

This business, tied to the mortgage origination outlook, is becoming ly attractive for 2024, according to BTIG.

Lenders could gain efficiencies from advances in artificial intelligence as the related development of alternative data potentially opens up the market to more borrowers, but hurdles exist.

The large companies are facing macroeconomic pressures because of high mortgage rates, Fitch said, but the American Land Title Association noted the industry's strong financial position.

The power to quickly ingest and analyze large loads of data has become more critical to many businesses that require quick turnarounds in their decision making, technology leaders said.

The title insurer was the third of the big four companies to come to an agreement with New York Attorney General Letitia James in an ongoing investigation.

A likely recession will only further the six active players' conservatism in their capital strategies, Fitch Ratings said.