—Analysis finds that fees for title insurance and settlement services are well below those of other costs charged to borrowers over the life of the mortgage loan—
SANTA ANA, Calif.–(BUSINESS WIRE)–First American Financial Corporation (NYSE: FAF), a premier provider of title, settlement and risk solutions for real estate transactions and the leader in the digital transformation of its industry, today published a study comparing the fees for title insurance and settlement services with other closing costs charged to borrowers when purchasing a home.
Titled “Missing the Forest for the Fees – An Analysis of the Regressivity and Closing Cost Significance of Title and Settlement Fees,” the research points out the inaccurate conclusion drawn from Fannie Mae’s 2021 study of borrower life-of-loan costs and details the more accurate differences in various costs over the life of a mortgage from Fannie Mae’s own updated research in 2022. Title and settlement fees are less than 1 percent of the borrower’s total life-of-loan costs.
“With affordability at historic lows and the prospect of homeownership seemingly out of reach for low- and moderate-income families, it’s critical to evaluate the borrower’s total life-of-loan costs,” said Mark Fleming, chief economist at First American and author of the study. “Importantly, Fannie Mae’s own research finds that title and settlement fees are neither regressive nor a significant component.”
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About First American
First American Financial Corporation (NYSE: FAF) is a premier provider of title, settlement and risk solutions for real estate transactions. With its combination of financial strength and stability built over more than 130 years, innovative proprietary technologies, and unmatched data assets, the company is leading the digital transformation of its industry. First American also provides data products to the title industry and other third parties; valuation products and services; mortgage subservicing; home warranty products; banking, trust and wealth management services; and other related products and services. With total revenue of $7.6 billion in 2022, the company offers its products and services directly and through its agents throughout the United States and abroad. In 2023, First American was named one of the 100 Best Companies to Work For by Great Place to Work® and Fortune Magazine for the eighth consecutive year and was named one of the 100 Best Workplaces for Innovators by Fast Company. More information about the company can be found at www.firstam.com.
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