Title Insurance Protects More Than a Transaction. It Protects Property Rights

WASHINGTON, July 24, 2026 /PRNewswire/ --The American Land Title Association (ALTA), the national trade association of the land title insurance industry, today issued the following statement regarding efforts to reduce title insurance protections in refinance transactions:  

Everyone agrees housing affordability is a challenge. Policymakers, lenders, real estate professionals and title companies all share the goal of reducing unnecessary costs and expanding access to homeownership. 

For many Americans, refinancing a mortgage represents an opportunity to lower monthly payments, access home equity or improve their financial position. While homeowners may already have title insurance from their original purchase transaction, title-related risks can arise at any point during ownership, making title verification and protection an essential component of the refinance process. 

"Consumers shouldn't have to choose between affordability and protection. The strongest housing market is one that delivers both," said ALTA CEO Chris Morton. "When people look at title insurance only as a closing cost, they miss the larger story. The real value lies in the defects discovered, the fraud prevented and the property rights protected. A refinance may not change who owns the property, but it doesn't eliminate the risks that can arise after a home is purchased." 

Title professionals help identify and resolve issues that may have occurred since a property was purchased, including recording errors, unreleased liens, forged documents, identity theft schemes, undisclosed interests and other defects that can affect ownership rights. These issues are often unknown to homeowners and lenders until a refinance transaction brings them to light.

According to the FBI, there has been a significant increase in real estate fraud attempts, including deed fraud, seller impersonation and mortgage-related scams. Criminals continue to leverage technology, stolen personal information and increasingly sophisticated schemes to target real estate transactions, making independent title verification more important than ever. 

New research from CertifID's 2026 State of Wire Fraud Report highlights the growing sophistication of fraud targeting real estate transactions. The study found that 22% of homebuyers reported receiving fraudulent or suspicious communications during the closing process, while 60% of title professionals surveyed said fraud attempts are increasing. As criminals use artificial intelligence, impersonation tactics and compromised communications to target buyers, sellers and industry professionals, the need for trusted verification processes and experienced title professionals has never been greater.

"Fraud is unaffordable," Morton said. "Efforts to improve housing affordability should not come at the expense of the protections that help prevent homeowners from losing equity, facing costly legal disputes or encountering unexpected claims against their property." 

A Milliman study commissioned by ALTA found fraud and forgery account for approximately 40% of title claim costs associated with refinance transactions, with the average refinance fraud and forgery claim exceeding $206,000. These losses can create significant financial hardship for consumers and lenders alike. 

In addition, 29% of title insurance losses and claims-related expenses arise from issues that cannot be discovered through a public-records search alone. Many title risks originate outside the public record and require professional examination, curative work and insurance protection to address. 

Liens are another example of how unresolved property issues can affect homeowners. A lien represents a legal claim against a property that may arise from unpaid taxes, contractor disputes, judgments, HOA assessments or other obligations. If not identified and resolved, liens can delay a sale or refinance, reduce available equity and create uncertainty about ownership rights. Millions of these liens are filed every year. Title professionals help uncover these potential risks, work to clear defects and provide confidence that a property can be transferred with a clean and marketable title. 

Recent research from First American underscores the broader role title professionals play in supporting the nation's property rights system and real estate economy. According to the company's 2026 white paper, the U.S. real estate economy generates approximately $5 trillion in annual economic activity and depends on confidence in property ownership and the integrity of land records. 

The study found that title professionals help identify, resolve and mitigate hundreds of billions of dollars in potential title risk exposure each year before transactions close. Previous analyses estimated annual title risk exposure at between $600 billion and $900 billion, with exposure exceeding $1 trillion during periods of elevated transaction activity. By identifying and curing title defects before closing, title professionals help prevent those risks from becoming costly disputes and financial losses for consumers, lenders and investors. 

While discussions about housing affordability often focus on closing costs, title insurance represents a relatively small portion of the overall cost of homeownership. According to First American research, title insurance and settlement fees account for less than 1% of a homeowner's total life-of-loan costs. Unlike many housing expenses that recur year after year, title insurance is generally a one-time expense that provides protection for as long as the homeowner owns the property. The research also found that the real cost of title insurance has declined over time due to industry innovation and competition. 

"Consumers deserve lower costs where possible, but they also deserve confidence that their property rights are protected," Morton said. "The goal should be to make transactions more affordable without weakening the safeguards that make homeownership secure or shifting more risks to consumers. Our industry has invested significantly in technology, data and process improvements that streamline title searches, enhance examination accuracy and create a more efficient settlement experience. Innovation and consumer protection are not competing goals. We can achieve both." 

About ALTA

The American Land Title Association, founded in 1907, represents an industry comprised of more than 17,000 title insurance companies operating across the nation, with over 90% being small businesses.

Contact: Alisa Mairone
Direct Office Line: 202-261-0305
Email: [email protected]

SOURCE American Land Title Association