FHFA Title Waiver Pilot: Risks to Florida Property Deals

In early 2024, the Federal Housing Finance Agency (FHFA) proposed a pilot program that would allow certain refinance transactions to proceed without title insurance. The goal: lower costs and reduce friction in the lending process. But while cost savings may appeal to some, the implications of bypassing title insurance are potentially severe—especially in a dynamic market like Florida.

Understanding the FHFA Title Waiver Program: Why It Matters in Florida

Florida’s real estate landscape is uniquely complex. Between condo law nuances, multi-decade ownership histories, and rapidly shifting development zones, the idea of eliminating title insurance opens the door to unforeseen liabilities. This is especially concerning for professionals facilitating commercial and high-volume residential sales in cities like West Palm Beach, Jupiter, and Boca Raton, where stakes are high and transaction values are significant.

Without a proper title search, buyers and lenders risk inheriting unrecorded liens, boundary disputes, fraud claims, or title defects. The FHFA’s pilot acknowledges these risks but seems to underappreciate how they manifest in high-volume, high-growth markets like the ones we serve in South Florida.

Where Southern Title's Expertise and Knowledge Benefits You

As an attorney-backed title insurance agency, Southern Title provides more than a closing checklist—we offer legal insight, local market fluency, and the ability to intervene early if irregularities arise. In a market where national policy shifts can trickle down and introduce volatility, our role is to be a stabilizing force.

Whether it’s a refinance under the pilot program or a traditional purchase, our title services ensure:

• Full title and lien searches conducted by licensed professionals
• Attorney involvement in all closings, not just when things go wrong
• Comprehensive escrow and disbursement management
• Real-time risk mitigation strategies for agents, lenders, and buyers

We are not just a title insurance agency. We are a strategic partner to Florida real estate professionals who need clarity and confidence—especially when national policy changes add pressure to local deals.

The Bottom Line for Real Estate Professionals

If you're a commercial or residential agent working with high-value listings, your client may be tempted by cost-cutting offers that promise faster closings or "optional" title services. But when a title defect is discovered six months after closing, those cost savings can vanish overnight.

Southern Title is prepared to help you educate clients, navigate risks, and maintain a secure transactional experience—no matter what programs the FHFA rolls out next. With Southern Title, you’re not skipping steps—you’re taking smarter ones.