Fannie Mae recently authorized the use of attorney legal opinions as an alternative to title insurance. This represents a major disruption to the $25 billion title insurance industry which is controlled by four conglomerates. iTitleTransfer has developed a home ownership transfer process using legal opinions that satisfies Fannie Mae's requirements as an alternative to title insurance. This new process provides a more affordable, reliable, and consumer-friendly settlement option compared to the existing title insurance monopoly. If adopted widely, it could challenge the dominance of the title insurance industry and provide more choice to consumers.

1. ALTERNATIVE TO TITLE INSURANCE
AUTHORIZED BY FANNIE MAE
By Theodore Sprink, Managing Director, iTitleTransfer, LLC
April 27, 2022
FannieMae’sdecision,published in theNationalMortgageNewson April7,2022 is quitesimple: Attorney
Legal Opinions can replace title insurance.
Fannie Maeprovidesliquidity to the real estate market by purchasing and guaranteeing mortgageloans
made by lenders, and issuing mortgage-backed securities that attract global investors to finance U.S.
housing. Fannie Mae purchased $1.4 Trillion in mortgage loans in 2021; with its Seller's, Lender's and
Servicer's guide generally dictating the procedures of mortgage lenders.
On April 20, 2022 Scottsdale, Arizona-based iTitleTransfer, LLC announced that it has developed a fully
integrated, end-to-end Home Ownership-Transfer Process providing a safe, reliable and low-cost
settlement ALTERNATIVE to title insurance, consistent with Fannie Mae's announced
alternative. iTitleTransfer's goal is advancing a Fannie Mae and Freddie Mac alternative that
represents CONSUMER CHOICE.
iTitleTransfer's homeownership-transferprocesssatisfiesFannieMae'srequirementsof an Attorney Legal
Opinion,established asacceptablean alternativeto title insurance...and extendsprotection fromthelaw
firm to buyers, sellers and lenders for defects and related issues to affecting clear title.
iTitleTransfer’s ownership-transfer process is trademark, copyright and patent protected.
Title insurance is a $25 Billion revenue per-year monopoly controlled by four title insurance corporate
conglomerates, which pay only 3-5% in claims. Fannie Mae’s recent survey of 208 banks confirmed that
the majority of bankers and their retail customers believe title insurance is too expensive and often
unnecessary.
In other words:
 There is little correlation in title insurance between price and risk.

2.  The title insurance monopoly introducing their own Legal Opinion Product will demonstrate to
consumers that title insurance is not generally necessary.
 Forthe title monopoly to reducepricing of title insurance,in an attemptto fend off disruptivenew
productsand processes,representsan admissionthatexcessivepricing hasbeen taking advantage
of consumers for decades.
With a massivebrickand mortarproliferation of 10,000-15,000 title company offices,4,500 affiliated title
agencies and 200,000 title insurance employees, title insurance is a dinosaur ripe for disruption by
experienced experts such as the executive team of PropTech firm iTitleTransfer, and hundreds of
blockchain technology startups, intent on challenging and changing the abusive power of the title
insurancemonopoly,which deniesconsumerchoiceandforcesconsumersto acceptthe100yearold status
quo.
Equally telling are recent statements by the CEO of the title industry-financed trade association, The
American Land & Title Association, in which it is stated that 75% of $25 Billion in revenue is disbursed
to employees. ALTA has also published statements that traditional real estate searches & examinations
reveal that 75% of residential properties are deemed ”clean title”, which renders title insurance
unnecessary.
Further,a numberof real estate,financial and legal publicationshavenoted that ALTA's claims that title
insurance prices have reduced in recent years are disengenuous, in that they fail to point out that lower
prices are simply the reflection of less costly re-finance transactions, based on historically low interest
rates...not loan originations.
FannieMae’s 1,240 pageSellers and Lenders Guide sets forth requirements,and the recently announced
alternative as set forth above, and are similar to Freddie Mac's Seller's and Servicer's Guide.
Theodore Sprink is the Founder and Managing Director of PropTech firm iTitleTransfer, LLC and can be
contacted at 866-494-3727 and tsprink@ititletransfer.com. www.iTitleTransfer.com.
Theodore Sprink, Founder and Managing Director of ITitleTransfer, LLC
866-494-3727 and tsprink@ititletransfer.com
www.iTitleTransfer.com