Keefe views title insurer selloff on Pulte tweet as overdone

Keefe Bruyette analyst Bose George views the selloff in the title insurers are overdone after Bill Pulte, Director of the Federal Housing Finance Agency, posted on X that effective today, in order to further reduce closing costs for homeowners, the FHFA will be adding a new vendor, Westcor, to the Fannie Mae’s (FNMA) title pilot program. The scale of the title pilot is modest, and Keefe sees no discernible earnings impact, the analyst tells investors in a research note. The firm thinks the market concern reflects the risk of the title pilot being broadened, but adds that rapid change will be difficult because title insurance is an insurance product, so any changes would have to be accepted by insurance regulators as well. Shares of First American (FAF) are down 8% to $55.05 in midday trading while Fidelity National (FNF) is down 7% to $51.20.