A home is more than a financial asset. It is where families build stability, save for the future and pass opportunity to the next generation. For many Americans, it is the largest investment they will ever make.

That investment depends on a strong, transparent system that is accountable to the people it serves. When a family buys or refinances a home, they should not have to wonder whether a forged document, recording error or act of fraud could later threaten their ownership or leave them facing costly litigation and financial loss.

Congress must pass the Protecting America’s Property Rights Act to ensure families and lenders are protected by reliable, regulated safeguards. For more than a century, title insurance has provided the strongest protection against title risk, helping safeguard property rights, lender collateral and the integrity of the housing market.

The problem with title insurance alternatives

Federal housing regulators have weakened these safeguards. In recent years, Fannie Mae and Freddie Mac have allowed attorney opinion letters and other title insurance alternatives for certain loans and refinances. These products are often promoted as a way to lower closing costs. But removing protections does not meaningfully reduce closing costs, nor does it remove risk. It only shifts that risk to consumers, lenders and ultimately to taxpayers.

That is the central problem with attorney opinion letters and other title alternatives: They do not provide the same protection as title insurance, and they are not subject to the same rigorous state-based regulatory framework. That creates gaps in consumer protection and exposes homebuyers and lenders to financial risk.

Closing the gaps in consumer protection

The Protecting America’s Property Rights Act, introduced by Reps. Andrew Garbarino (R-NY) and Vicente Gonzalez (D-TX) would help close those gaps. The bill would require mortgages purchased by Fannie Mae and Freddie Mac to be insured against title risk by a state-regulated product such as title insurance.

At its core, this bill is about protecting consumers and their homes. When an individual or family buys or refinances a home, they deserve confidence that their ownership is secure and that strong, regulated safeguards will protect them if that ownership is challenged.

The hidden risks of mortgage refinances

That protection is especially important in refinances, which are often mischaracterized as low risk simply because the property has been financed before. A refinance is a new loan that is not immune to fraud. ALTA’s 2025 Milliman study confirms this: Fraud and forgery represent more than 40% of total refinance claim costs. The average refinance fraud or forgery claim exceeded $206,000, which is nearly seven times higher than the average cost of all other types of refinance claims.

The study also found that about 40% of refinance losses and defense costs were tied to fraud and forgery issues not identifiable through public record searches. That matters because many title alternatives rely solely on public records review. Public records are essential, but they are not enough. Fraud and forgery often involve identity theft, forged signatures and improper notarization—risks that may not appear in public records until after the damage is done.

Attorney opinion letters and other title alternatives do not provide the same ongoing protection against undiscovered risks. Nor do they include the same duty-to-defend if litigation arises. State insurance regulators in Virginia and Tennessee have raised concerns about the risks these products may pose to consumers, reinforcing that this is not merely an industry concern, it is a consumer protection issue.

Finding and fixing problems before closing

The difference is not just what title insurance covers after a problem appears. It is what title professionals do before closing to prevent problems in the first place. Title professionals do not simply identify risks. They cure them. Before a transaction closes, they search records, review documents, identify defects, clear liens, resolve ownership issues, coordinate payoffs and address inconsistencies that could cloud title. ALTA’s 2026 curative study found that 52% of title professionals spend 11 or more hours each month on anti-fraud measures, and 82% of purchase transactions require review of 11 or more documents. Nearly 60% of files require removing three to five requirements or exceptions before closing.

That prevention work is why title insurance is different from many other forms of insurance. It is not just a promise to pay after something goes wrong. It is a system built to find and fix problems before consumers, lenders and the housing finance system are exposed. That prevention-first model brings security, certainty and trust to the housing market.

True affordability requires secure property rights

Housing affordability is rightly a major focus in Washington. But policymakers should be wary of title alternatives marketed as cost-saving solutions when they may offer little or no meaningful savings and leave consumers with less protection. Removing title insurance does not remove title risk; it simply shifts that risk to families, lenders and potentially taxpayers. The Protecting America’s Property Rights Act would help ensure policymakers do not mistake weaker safeguards for real affordability.

Consumers deserve to know their property rights are protected. Lenders deserve confidence that their collateral is secure. Taxpayers deserve assurance that Fannie Mae and Freddie Mac are not taking on avoidable risk.

Congress should pass the Protecting America’s Property Rights Act because a home should be a source of security, not a source of hidden legal risk. Protecting property rights is essential to a safe, stable and sustainable housing finance system.

Chris Morton is the CEO of the American Land Title Association.
This column does not necessarily reflect the opinion of HousingWire’s editorial department and its owners. To contact the editor responsible for this piece: zeb@hwmedia.com.