Ahmad Mango Weighs the Risks and Rewards of Using Attorney Opinion Letters in Real Estate Deals

Hinshaw attorney Ahmad Mango recently authored a Daily Business Review byline discussing the emerging trend of using Attorney Opinion Letters (AOLs) as an alternative to title insurance in real estate finance transactions.

Despite the potential cost savings, Mango warns of the risks involved in forgoing traditional title insurance. Additionally, Mango discusses the Federal Housing Finance Agency's 2022 initiative, which allowed Freddie Mac and Fannie Mae to accept AOLs under certain conditions, with the aim of reducing closing costs for low-income and first-time homebuyers.

Mango expressed skepticism regarding the effectiveness and safety of relying on AOLs as a replacement for title insurance. He explains how this is especially concerning given the limited protection offered by AOLs, and provides the stances taken by reputable title underwriters in Florida.

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Media Coverage

• “Authorizing the Use of Attorney Opinion Letters in Lieu of Title Insurance in Real Estate Transactions” was published by Daily Business Review on August 26, 2024.
• "Approving Attorney Opinion Letters In Lieu of Title Insurance Is Trending, But Use With Caution" was republished by Law Journal Newsletters on September 1, 2024.