Refinancing remains a primary tool for Americans to manage debt or access home equity, yet the process carries risks that often emerge only during the transition. ALTA CEO Chris Morton argues that viewing title insurance merely as a closing cost ignores its role as a safeguard against forgery, identity theft, and undisclosed interests. Data from the 2026 CertifID State of Wire Fraud Report underscores this urgency: 60% of title professionals report a rise in fraud attempts, with criminals increasingly leveraging artificial intelligence to target real estate transactions.

Financial stakes remain high. A Milliman study commissioned by ALTA reveals that fraud and forgery account for roughly 40% of title claim costs in refinances, with average claims exceeding $206,000. Beyond intentional deception, title professionals routinely clear recording errors and unreleased liens that can cloud ownership for years. First American research suggests that the industry mitigates between $600 billion and $1 trillion in potential risk annually, a vital buffer for a U.S. real estate market generating $5 trillion in yearly activity.

While industry critics prioritize reducing transaction fees, title insurance and settlement costs represent less than 1% of a homeowner's total life-of-loan expenses. Morton maintains that the industry is already driving down real costs through technological innovation and competition. He contends that reform efforts should focus on efficiency rather than dismantling protections, noting that innovation and consumer security are complementary goals rather than competing interests.