The nation’s leading mortgage lender, United Wholesale Mortgage (UWM), is making waves with a new offering that could change the landscape of refinancing. As part of a controversial Fannie Mae pilot program, UWM’s “TRAC Lite” allows borrowers in select states to refinance their mortgages without paying for traditional title insurance, potentially slashing closing costs for homeowners.
Reimagining Title Insurance
TRAC Lite, launched in November, leverages Doma Title’s automated technology to bypass conventional title insurance for low-risk refinance transactions. Doma employs machine learning to identify clear titles with the same risk assessment profile as traditional methods but at a fraction of the cost. Currently available in Arizona, California, Colorado, New Jersey, Ohio, Texas, and Virginia, the program targets properties free of liens or encumbrances.
This move builds on UWM’s broader efforts to challenge title insurance norms. In 2022, the company introduced its Title Review and Closing (TRAC) tool, allowing attorney opinion letters to substitute title insurance. This year, UWM expanded the program with TRAC+ and now TRAC Lite, continuing its mission to lower consumer closing costs.