ALTA has doubled down on rhetoric and disinformation in an attempt to prevent competition in the title insurance industry and protect its monopoly. Providers of GSE-compliant attorney opinion letters (AOLs) offer a safe, reliable, and low-cost alternative to title insurance, saving consumers up to 65% of closing costs. However, ALTA has demonstrated desperation to eliminate this alternative, evidenced by false and misleading political statements designed to undermine AOLs. ALTA recruited two members of Congress to pressure federal agencies to remove the GSEs' authorization of AOLs, even though the GSEs are focused on introducing competition to benefit consumers in the multi-trillion dollar real estate market.

1. The Nation’s First GSE-Compliant E2E Loan Closing Platform
ALTA Doubles Down on Political Rhetoric
and Dis-Information
Strategy Viewed as Monopoly-Driven Anti-Competition and Restraint of Consumer Choice
Opinion Essay by Theodore Sprink
March 9, 2023
Title insurance industry revenue in 2021 was $26 Billion, dominated by a monopoly of four corporate
conglomerates, paying less than 3% in consumer claims. The American Land Title Association (ALTA), the title
industry’s lobbyist, published a report that 75% of land title searches reveal “clean title”, rendering title
insurance unnecessary. The implication: There is no correlation between price and risk in the use of title
insurance. And there exists a general view that a law suit is required to enforce title insurance coverage.
In 2021 and 2022 Government Sponsored Enterprises (GSEs) Fannie Mae and Freddie Mac authorized
Attorney Opinion Letters (AOLs), prepared by professional real estate
lawyers, as an alternative to costly and often unnecessary title
insurance. Mortgage Lenders requested the alternative. GSEs
operate as a source of liquidity for mortgage lenders (Seller Banks),
having purchased $1.3 Trillion in mortgage loans last year.
Providers of the GSE-compliant AOLs provide a safe, reliable, low-cost
disruption to the title insurance monopoly’s 100% market share,
saving consumers up to 65% of closing costs. This is particularly
important to DEI and first-time home buyers struggling to qualify and
make monthly loan payments.
In recent months ALTA has demonstrated desperation to prevent
competition proposed by the GSE-authorized alternative, evidenced
by political rhetoric, dis-information and falsehoods designed to
denigrate AOLs. ALTA has demonstrated a frightening lack of
understanding of the substance of current and popular AOLs.
To propagate the monopoly, ALTA recruited two Congressmen (out
of 535 members) to influence multiple Federal Agencies to eliminate
the GSE-authorized alternative to title insurance. The GSEs are
steadfast in their concern of a monopoly’s role in the multi-trillion-
dollar real estate market, and ALTA’s repeated public statements to
terminate competition, low cost, and consumer choice.
Several days ago, ALTA foisted a new concept on the public; that GSEs exceeded their “charter” in advocating
competition, low-cost and consumer choice. This ill-conceived strategy borders on the ridiculous. GSE Seller
Guides already have FHA and HUD authority to accept AOLs in the underwriting and purchase of bank loans.
Lenders and borrowers should look closely at AOLs, a safe, reliable, and low-cost alternative to title insurance.
Theodore Sprink, Founder and Managing Director 866-494-3727 tsprink@iTitleTransfer.com
www.iTitleTransfer.com