SingleSource Property Solutions, a provider of property services supporting the U.S. housing industry, has launched the SingleSource Attorney Conclusion of Title (ACT™), a standardized attorney opinion letter that will save mortgage borrowers and lenders significant costs while providing comparable coverage to a more costly title insurance policy.
Although the concept of using legal opinions to confirm the marketability of title has been around for as long as property transfers have been documented, ACT™ is a new iteration that makes these opinions scalable, affordable, and widely available – and GSE approved. Under the authority of the supreme court of the state where the property is located, attorneys who issue an ACT™ will be protected by a comprehensive liability wrapper – enabling SingleSource to provide comparable coverage as a title insurance policy at a much lower cost to the consumer.
The SingleSource ACT™ is being offered through a collaboration with Voxtur, a technology company creating a more transparent and accessible real estate lending ecosystem.
“Lenders and consumers finally have a new option when it comes to title insurance,” SingleSource Property Solutions COO Ed Austin said. “ACT™ applies the strength of a legal opinion to abstracted title evidence. As a nationwide title company, SingleSource is thrilled to offer an alternative that provides major cost and time savings for consumers nationwide.”
“We’re excited to collaborate with SingleSource on its ACT™ offering,” said Jim Albertelli, Voxtur CEO. “This is an opportunity for us to lower the cost of purchasing a home, and to make home ownership a reality for more Americans.”
Generating an ACT™ starts with a data-driven decision report followed by a preliminary opinion. Once the closing is complete, the final ACT™ is issued and delivered to the lender and borrower.
Available through a direct integration with the originator’s loan origination system, the SingleSource ACT™ works with existing settlement processes and can be produced in the same amount of time as a traditional title policy.
ACTs™ are available on loans up to $1 million. Each ACT™ is backed by a Mortgage Service Providers Errors & Omissions (E&O) insurance policy issued by carriers that are A-rated by AM Best. The policies cover the full value of the loan for the life of the loan and are fully transferrable in the secondary market. Both SingleSource and law firms issuing ACTs™ are covered by the policies as service providers, with the lender named as a third-party beneficiary.
“We have had a great relationship with SingleSource over the years providing a number of warranty products,” said Chris Mallon, Executive Vice President of Group 9 Insurance Solutions, an E&O policy provider based in Pennsylvania. “We are excited to expand our partnership to provide this new and innovative offering to the industry.”
The SingleSource ACT™ is currently available nationwide.
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