ALTA’s David Townsend on housing affordability and title insurance regulations

As new American Land Title Association (ALTA) President David Townsend steps into his role, he’s wasting no time setting an agenda that includes expanded housing access and a halt to right-to-list agreements — also known as non-title recorded agreements for personal service (NTRAPS).

Townsend said these initiatives, along with efforts to improve affordability, streamline permitting and strengthen title protections, are central to ALTA’s priorities under his leadership.

“One thing that we can really focus on is what we can control, and that is how we tell our story, how we educate people on the importance of title insurance,” he told HousingWire. “It’s educating consumers on protecting property rights, and giving industry professionals the tools and training they need.

“We’re also looking at cybercrime and seller impersonation fraud. We are constantly updating the best practices framework that really focuses on wire fraud and identity verification. Protecting consumers has always been a top priority of ours, and I think never more so than now.”

Townsend serves as senior vice president at the Fidelity National Financial Family of Companies and founded Agents National Title Insurance Co.

NTRAPS and heirs’ property

Townsend emphasized that ALTA is continuing to push for more NTRAPS bans at the state level.

“With NTRAPS and heirs’ property, we’re working on getting fairness and access to homeownership,” he said. “We’re also working closely with our partners and state legislatures across the country to get properties back into circulation and clear title to that inherited land.”

In total, 33 states have passed laws that ban NTRAPS agreements or make them unenforceable.

He described the widespread issue of heirs’ property — land passed down without formal estate planning — as a “hidden obstacle” to an affordable housing expansion.

“There are tens of thousands of properties nationwide that are tied up in heirs’ property because no one knows who owns them,” Townsend said. “They end up in land banks. If we can work with folks to get those properties back on the market, many of those are going to be affordable-type houses.”

Addressing housing supply, affordability

For Townsend, the lack of housing inventory is one of the biggest drivers of the current affordability crisis.

“Right now it’s supply — there aren’t enough homes on the market to meet the demand, and that has helped keep prices high,” he said. “The increase in prices is slowing, but it’s still not enough to make homeownership attainable for many families.”

He believes solutions start at the local level through zoning reforms and smarter permitting.

“It has to be done responsibly,” he said. “It’s really a grassroots thing. As much as we would love to flip a switch at the national level, that’s pretty impossible.”

Townsend added that the permitting process has become a major cost driver for developers, even in markets traditionally known for affordability.

“I was talking to a couple developers that I know here in town,” he said. “In the Midwest — Columbia, Missouri — it’s $70,000 to develop a lot. Before they even market that lot, they’ve got $70,000 of cost in each one. So if you’re starting at that point, it makes it very hard to build or to sell a house at $200,000.”

He sees promise in federal initiatives such as the Saving the American Dream Act and the ROAD to Housing Act — both designed to streamline permitting and modernize zoning regulations.

Townsend said ALTA is strengthening its ties with policymakers, including U.S. Rep. Mark Alford (R-Mo.), chairman of the Congressional Real Estate Caucus and sponsor of the Saving the American Dream Act.

“He’s really been a leader,” Townsend said. “What he wants to do is create housing policy across multiple agencies, where it’s very data driven and actually improves access to housing.”

Standing firm on title insurance waivers

Townsend was candid when asked about the title waiver pilot program involving Fannie Mae and Freddie Mac.

“ALTA believes that every real estate transaction should include title insurance from a regulated insurer under strong state oversight,” he said. “We’ve got a structure in there that has been a stable market on protecting the collateral for those lenders.”

The waiver pilot — relaunched by Fannie Mae in March 2024 — allows approved mortgage lenders to use an automated title review process to assess title risk during loan manufacturing and prior to loan purchase.

The pilot is limited to certain refinance loans with loan-to-value ratios of less than 80% in certain geographic areas.

Doma was the first title insurance firm to take part in the program and has been joined by Westcor Land Title Insurance.

In July, Fidelity National Financial and the Federal Housing Finance Agency announced a collaboration on “innovative title insurance solutions.” In a statement provided to HousingWire, FNF clarified that this does not involve the company being part of the title waiver pilot.

Even in cases such as refinances or inherited homes where risks seem minimal, Townsend said ALTA stands against the program.  

“Honestly, the waiver is a solution in search of a problem,” he said. “A title insurance policy is the best protection out there, and our costs have not risen along with other real estate costs.”

He said ALTA maintains open communication with the government-sponsored enterprises (GSEs) and continues to monitor the pilot program.

“Our advocacy folks have great relationships with all the GSEs,” Townsend said. “We’re in constant contact with them to try and find solutions that involve title insurance. The pilot program is limited to Fannie and Freddie, and they’re keeping their information in house at this point.”

Expectations for federal policy

Asked about expectations under the Trump administration, Townsend said the industry is preparing for potential shifts in housing finance policy and GSE oversight.

“What we want to see are GSEs that support housing, support title insurance and protect the consumer,” he said. “Whether policymakers feel that means a more independent Fannie and Freddie, we will adapt.”

Townsend said adaptability is one of the title industry’s enduring strengths.

“We’ve been very malleable as an industry — no matter who is in charge — to work with them to protect the consumer, and to promote homeownership and title insurance,” he said.