First American Financial Corporation published a new white paper detailing how title insurance protects the integrity of the U.S. property records system and mitigates an estimated $600 to $900 billion in risk exposure to home buyers, lenders, and other participants in real estate transactions annually. The paper explains that title professionals search, examine, and cure title defects before they become costly legal disputes, helping maintain the critical infrastructure that supports the nation's approximately $5 trillion real estate economy. It warns that proposals to waive or replace title insurance would shift risk to homeowners, lenders, investors, and taxpayers, and erode incentives to maintain the quality of property records. The analysis also notes that title and settlement fees represent less than 1 percent of a borrower's total life-of-loan costs.
First American CorporationWhite paper highlights title insurance's value in mitigating risk, supporting demand for First American's services.