Fees for Title Insurance and Settlement Services Less Than 1 Percent of Borrower’s Total Life-of-Loan Costs: New Study From First American Chief Economist
14 Diciembre 2023 - 10:00AM
Business Wire
—Analysis finds that fees for title
insurance and settlement services are well below those of other
costs charged to borrowers over the life of the mortgage
loan—
First American Financial Corporation (NYSE: FAF),
a premier provider of title, settlement and risk solutions for real
estate transactions and the leader in the digital transformation of
its industry, today published a study comparing the fees for title
insurance and settlement services with other closing costs charged
to borrowers when purchasing a home.
Titled “Missing the Forest for the Fees – An Analysis of the
Regressivity and Closing Cost Significance of Title and Settlement
Fees,” the research points out the inaccurate conclusion drawn from
Fannie Mae’s 2021 study of borrower life-of-loan costs and details
the more accurate differences in various costs over the life of a
mortgage from Fannie Mae’s own updated research in 2022. Title and
settlement fees are less than 1 percent of the borrower’s total
life-of-loan costs.
“With affordability at historic lows and the prospect of
homeownership seemingly out of reach for low- and moderate-income
families, it’s critical to evaluate the borrower’s total
life-of-loan costs,” said Mark Fleming, chief economist at First
American and author of the study. “Importantly, Fannie Mae’s own
research finds that title and settlement fees are neither
regressive nor a significant component.”
Disclaimer
Opinions, estimates, forecasts and other views contained in this
page are those of First American’s Chief Economist, do not
necessarily represent the views of First American or its
management, should not be construed as indicating First American’s
business prospects or expected results, and are subject to change
without notice. Although the First American Economics team attempts
to provide reliable, useful information, it does not guarantee that
the information is accurate, current or suitable for any particular
purpose. © 2023 by First American. Information from this page may
be used with proper attribution.
About First American
First American Financial Corporation (NYSE: FAF) is a
premier provider of title, settlement and risk solutions for real
estate transactions. With its combination of financial strength and
stability built over more than 130 years, innovative proprietary
technologies, and unmatched data assets, the company is leading the
digital transformation of its industry. First American also
provides data products to the title industry and other third
parties; valuation products and services; mortgage subservicing;
home warranty products; banking, trust and wealth management
services; and other related products and services. With total
revenue of $7.6 billion in 2022, the company offers its products
and services directly and through its agents throughout the United
States and abroad. In 2023, First American was named one of the 100
Best Companies to Work For by Great Place to Work® and Fortune
Magazine for the eighth consecutive year and was named one of the
100 Best Workplaces for Innovators by Fast Company. More
information about the company can be found at www.firstam.com.
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First American Financial Corporation 714-250-3298
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