iTitleTransfer Introduces Anti-Monopoly and Pro-Costumer Choice "Alternative to Title Insurance" for a Third of the Closing Cost, Authorized by Fannie Mae and Freddie Mac, utilizing Real Estate Attorney Opinion Letters.

1. Are lenders listening to GSEs?
Published on September 12, 2022
Theodore Sprink
Managing Director, iTitleTransfer, LLC serving Wholesale and Direct Lenders, Realtors and Cash Buyers
Because many of us have experienced multiple, often-volatile real estate cycles, I’ll start this brief essay with
my “conclusion”, relating to what Lenders, Realtors and title insurance companies are experiencing:
1. The Central Bank, aka the Federal Reserve’s “Fed Funds” establish interest rates, which drives the nation’s
money supply…directing interest rates either up or down. Prior to 2021 the Fed Fund rate was essentially
zero…which provided for extraordinarily low mortgage interest rates. The Fed Fund rate is generally tied to
the Prime Rate. These rates, when higher, tighten money supply to restrain inflation, resulting in higher
mortgage interest rates.
2. Government Sponsored Enterprises, Fannie Mae and Freddie Mac forecast that real estate market home sales
suffer a 5% reduction for every 1% increase in interest rate. Goldman Sachs predicts a reduction in home

2. value of 22% in 2022, a realistic consideration when compared to the extraordinary 2021 appreciation in
home value, often exceeding 10% per month during the days of 2.5 interest rates. Black Knight projects that
in 2022 and 2023 home value will reduce approximately 1% per month.
3. In 2020 trillions in federal stimulus dollars triggered today’s inflation. Soaring home prices forced the
Federal Reserve to raise interest rates in an attempt to control inflation, which has predictably eroding
purchasing power. The higher interest rates have resulted in Consu closing costs at an extraordinary high.
4. Government Sponsored Enterprises, Fannie Mae and Freddie Mac, deserve credit for authorizing an
"Alternative to title Insurance", thereby significantly lowering Borrower closing costs.
5. The GSEs-compliant Attorney Opinion Letter provides the benefits of increased transaction volume,
margin spread and market share to their “Seller” Lenders.
6. The real question is, are the Lenders listening to the GSEs by implementing the safe, reliable and low-
cost alternative authorized by the GSEs?
7. Lenders would be well advised to seek Consumer Choice-Alternatives to the title insurance monopoly,
that generated revenue of $26 Billion in 2021 and paid only 3% in claims. 75% of SFR searches and
examinations reflect "clean" title, rendering title insurance costly and unnecessary.
8. In cycles of decades past, lenders are reacting today as they always have: Making up for the shortfall
in traditional loan products by offering new products such as 40 year mortgages, loan hybrids,
increased broker commissions, temporarily-locked loans commitments, HECLS, ARMS, Reverse
Mortgages, increased conforming-loan levels, higher loan fees; and employee layoffs.
9. Incredibly, rather than protecting market share by reducing Borrower costs, lenders, Realtors and the
title insurance monopoly are employing decades old solutions to a 2022 problem!
10. Lenders would be well advised to implement the Borrower cost-saving closing Attorney Opinion
Letter alternative, made possible by the GSEs.
iTitleTransfer, LLC is the nation’s first PropTech firm advancing Consumer Choice by providing a life-of-loan,
end-to-end closing and home ownership-transfer process, based on a GSE-compliant Attorney Opinion Letter,
an authorized alternative to costly and unnecessary title insurance. iTitleTransfer’s proprietary E2E process
benefits Borrowers, Lenders, Institutional Investors and iBuyers.
iTitleTransfer, LLC Announces Nation’s First
GSE-Compliant E2E Closing Service
GSE Authorizes Attorney Opinion Letters as Alternatives to Title Insurance
iTitleTransfer, LLC is the nation’s first PropTech firm advancing consumer choice by providing an end-to-end closing and home
ownership-transfer process based on a GSE authorized alternative to costly title insurance. iTitleTransfer’s life-of-loan process
benefits Borrowers, Lenders, Institutional Investors and iBuyers.
iTitleTransfer, LLC maintains offices in Scottsdale, Arizona and production facilities in Dallas, Texas and Orlando, Florida.
Theodore Sprink, Managing Director 866-494-3727 tsprink@iTitleTransfer.com
www.iTitleTransfer.com