source:
  type: guide
  id: fnma-sel-b7-2-06
  authority: Fannie Mae Selling Guide B7-2-06 — Attorney Title Opinion Letter Requirements
  description: Fannie Mae Selling Guide B7-2-06 — Attorney Title Opinion Letter Requirements.
  coverage_tier: operative
obligations:
- id: fnma-sel-b7-2-06-full
  canonical_id: fnma-sel-b7-2-06-full
  section: Fannie Mae Selling Guide B7-2-06 — Attorney Title Opinion Letter Requirements
  type: do
  tags:
  - regulator-direct
  - fnma
  - selling-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Selling Guide B7-2-06 — Attorney Title Opinion Letter Requirements
    source_class: fnma-guide
    source_url: https://singlefamily.fanniemae.com/media/document/pdf/selling-guide
    snapshot_id: 5f7b8b79da595d76
    fetched_at: '2026-05-25T14:09:57Z'
    content_hash: sha256:98cf85a02861bbe84914a0e339b327c8fc131869a8a573882007bbeea60c5701
    paragraph_quote: 'B7-2-06, Attorney Title Opinion Letter Requirements (12/10/2025)
      Introduction This topic contains information on the following: Attorney Title
      Opinion Letter Requirements Ineligible Transactions Special Feature Code Attorney
      Title Opinion Letter Requirements Lenders are authorized to use an attorney
      title opinion letter in lieu of a title insurance policy if all of the conditions
      in the following table are satisﬁed. ✓ The attorney title opinion letter must...
      be addressed to the lender and all successors in interest of the lender. provide
      the following statement: We [I] agree to indemnify you and your successors in
      interest in the [mortgage] [deed of trust] opined hereto, to the full extent
      of all losses attributable to a breach of our [my] duty to exercise reasonable
      care and skill in the examination of the title and giving of this opinion. provide
      the gap coverage for the period of time between the loan closing and the recordation
      of the mortgage. state that the title condition of the property is acceptable
      and the mortgage constitutes a lien of the required priority on a fee simple
      estate in the property. list other liens and state that they are subordinate.
      be given by an attorney licensed to practice law in the jurisdiction where the
      subject property is located. The attorney must also be insured against malpractice
      in rendering opinions of title in an amount commonly prevailing in the jurisdiction,
      taking into account the volume of opinions rendered by the attorney. be commonly
      acceptable in lieu of title insurance by private institutional mortgage investors
      in the area where the subject property is located. Published May 6, 2026 854
      ✓ The attorney title opinion letter must... include language relating to the
      coverage normally provided by ALTA Endorsement 8.1 (Environment Protection Lien).
      Section (a) of the endorsement insures that there are no environmental protection
      liens ﬁled in the public records that have priority over the lien of the insured
      mortgage; Section (b) insures that there are no state statutes that provide
      that liens ﬁled after the date of the policy would have priority over the lien
      of the insured mortgage. An attorney may include an exception for possible subsequent
      super liens that could take priority over the mortgage only if the subject property
      is located in a state whose state statutes provide for such a super lien. include
      the following if the loan is an ARM: The law of the state in which the property
      securing the mortgage is located provides that (i) the lien of the mortgage
      will not become invalid or unenforceable resulting from provisions in the mortgage
      that provide for changes in the interest rate calculated pursuant to the formula
      provided in the mortgage, and (ii) priority of the lien of the mortgage for
      the UPB of the loan, together with interest as changed and other sums advanced
      by the noteholder in accordance with the provisions of the mortgage, will not
      be lost as a result of changes in the rate of interest calculated pursuant to
      the formula provided in the mortgage. include the following if the loan is secured
      by a unit in a PUD: • there is no present violation of any restrictive covenants
      that are in the PUD constituent documents and restrict the use of the land or
      the forfeiture or reversion of title, • all dues applicable to the subject property
      are current and not delinquent, and • no recorded right of ﬁrst refusal to purchase
      the land was exercised or could have been exercised on or before the closing
      date of the loan and the undersigned is unaware of the existence or the exercise
      of any right of ﬁrst refusal on or before the closing date of the loan. not
      take exception to survey matters. In addition, the opinion must not be subject
      to any title exceptions other than those set forth in B7-2-05, Title Exceptions
      and Impediments. Ineligible Transactions The following transactions are not
      eligible for an attorney title opinion letter: co-op share loans; loans secured
      by a dwelling on a leasehold estate, including leasehold estates on property
      owned by a community land trust; loans secured by a manufactured home; Published
      May 6, 2026 855 HomeStyle Refresh and HomeStyle Renovation loans; Texas Section
      50(a)(6) loans; and loans executed using a power of attorney. Special Feature
      Code The lender must report Special Feature Code 155 when delivering a loan
      that uses an attorney title opinion letter in lieu of a title insurance policy.
      This code is in addition to any other SFCs that may apply (see Special Feature
      Codes for additional information). Recent Related Announcements The table below
      provides references to recently issued Announcements that are related to this
      topic. Announcement Issue Date Announcement SEL-2025-10 December 10, 2025 Announcement
      SEL-2023-11 December 13, 2023 Announcement SEL-2022-03 April 06, 2022 Chapter
      B7-3, Property and Flood Insurance Introduction This chapter describes Fannie
      Mae’s requirements for property and ﬂood insurance, including those related
      to coverage types, amounts, and evidence. See Servicing Guide Chapter B-2, Property
      Insurance Requirements, Chapter B-3, Flood Insurance Requirements, and Chapter
      B-6, Lender-Placed insurance for additional servicer requirements.'
  judgment: false
