Westcor Joins Fannie Mae Title Insurance Waiver Pilot, Partners with X1 Analytics and Mortgage Connect LP

In a significant step toward modernizing the mortgage closing process, the Federal Housing Finance Agency (FHFA) announced on July 11, 2025, that Westcor Land Title Insurance Company, the nation’s largest independent title insurance underwriter, has joined Fannie Mae’s Title Acceptance Pilot as a second vendor alongside Doma Title Insurance. Partnering with X1 Analytics and Mortgage Connect LP, Westcor aims to deliver a title insurance-backed product that balances cost savings with consumer and lender protections.

Initially launched in March 2024, the pilot program allows approved lenders to bypass traditional title insurance or attorney opinion letters (AOLs) for certain low-risk refinance loans, using automated title reviews to reduce closing costs. While the program promises significant savings—estimated at $1,000 to $3,000 per transaction—it has sparked debate about its risks and long-term implications for the title industry and homeowners.

The Title Insurance Acceptance Pilot: A Push for Modernization

Fannie Mae’s Title Acceptance Pilot, overseen by the FHFA, is designed to streamline the mortgage closing process and reduce costs for consumers and taxpayers. The program, relaunched in March 2024 after earlier iterations, targets refinance loans with loan-to-value (LTV) ratios below 80% in select geographic areas. Instead of requiring traditional title insurance or AOLs, lenders use an automated title review process to assess title risks, paying Fannie Mae a $75 fee per transaction to cover potential title defects. This approach eliminates costly title insurance premiums, which average around $1,500 for a $300,000 refinance loan, offering substantial savings for borrowers.

The pilot’s initial participant, Doma Title Insurance, leveraged machine learning to automate title and escrow processes, demonstrating the potential for technology to reduce friction in closings. Westcor’s entry, announced by FHFA Director Bill Pulte, expands the program’s reach and fosters competition. Westcor, based in Maitland, Florida, partnered with X1 Analytics, a firm specializing in digital title data solutions, and Mortgage Connect LP, a Pittsburgh-based mortgage service provider, to develop a product that combines X1’s advanced title engine with Mortgage Connect’s automated title curative and scalable closing processes. This collaboration aims to deliver a low-cost, secure alternative to traditional title insurance while retaining its core legal assurances.

Westcor’s Role and Industry Impact

Westcor’s participation marks a pivotal moment for the pilot, given its status as the largest independent title insurer in the U.S., with a 4% market share according to industry analysts. Unlike Doma, which focuses on machine learning-driven automation, Westcor’s approach emphasizes a title insurance-backed product that departs from traditional models but preserves protections for borrowers and lenders. “We’re proud to support the GSEs’ modernization goals while continuing to uphold the core value of title insurance—protecting property rights,” said Westcor CEO Mary O’Donnell. “This pilot proves that innovation and consumer protection can go hand in hand.”

The partnership with X1 Analytics and Mortgage Connect enhances Westcor’s offering. X1’s title engine capabilities enable rapid, data-driven title assessments, while Mortgage Connect’s expertise in automated title curative processes ensures efficiency and scalability. This combination allows lenders to bypass traditional title insurance without sacrificing security, addressing concerns about unresolved liens or fraud that could arise between loan originations. Jeff Coury, CEO of Mortgage Connect, noted, “This product offering balances consumer cost savings with the protections our lenders and the mortgage market have come to expect.”

Benefits and Savings for Borrowers

The pilot’s primary appeal is its cost-saving potential. Lenders like United Wholesale Mortgage (UWM) and Better Mortgage, early participants in the program, report average savings of $1,000 to $3,000 per transaction for borrowers. UWM’s TRAC Lite program, for example, eliminates title insurance fees for eligible refinance loans in 14 states, including Arizona, California, and Texas, with a maximum LTV of 80%. These savings are particularly significant in a high-interest-rate environment, where refinancing volumes are expected to rise in 2025 due to anticipated rate cuts. By reducing closing costs, the pilot could make refinancing more accessible, particularly for first-time homeowners facing affordability challenges.

Industry Criticism and Risks

Despite its benefits, the pilot has faced opposition from the American Land Title Association (ALTA) and bipartisan lawmakers, who argue it introduces risks by bypassing thorough title vetting. ALTA initially called the program a “political gesture” that could expose consumers and lenders to financial risks from unaddressed title issues, such as fraud or unresolved liens. Critics contend that Fannie Mae’s $75 fee may not adequately cover potential title defects, potentially shifting risk to taxpayers. However, proponents like UWM’s COO Melinda Wilner argue that title claims on refinance loans are rare, making the program a “no-brainer win for consumers.”

The expansion also impacted share prices of major title insurers like First American and Fidelity National Financial, which fell 6–7% on July 11, 2025, reflecting investor concerns about the pilot’s disruption of traditional title insurance models. Analysts at Keefe, Bruyette & Woods, however, described the selloff as “overdone,” noting the pilot’s limited scope and modest market impact.

Future Implications and Preparations

The pilot’s future remains uncertain, particularly with potential policy shifts under a new administration. Bipartisan calls to pause the program until public review highlight ongoing tensions between innovation and risk management. Lenders must prepare for operational changes, including updates to Loan Origination Systems (LOS) to integrate automated title review processes and training staff on the new model’s compliance requirements. The FHFA’s biannual updates, expected in April and October 2026, will provide further clarity on the pilot’s expansion or potential adjustments.

Westcor’s entry, supported by X1 Analytics and Mortgage Connect, signals a broader trend toward tech-driven efficiency in real estate finance. As the pilot evolves, it could pave the way for wider adoption of automated title solutions, potentially extending to purchase loans, which comprise 75% of the mortgage market. For now, the program’s focus on low-risk refinances offers a testing ground for balancing cost savings with consumer protections, with Westcor’s participation reinforcing the industry’s shift toward modernization while preserving the safeguards that underpin secure real estate transactions.