Real estate technology company Alita Group announced that Moody’s Investors Service reviewed the framework of its AOLPro product, an insured attorney opinion letter (AOL) used as an alternative to title insurance, and determined it is materially similar to traditional title insurance from a credit risk perspective.
Moody’s reviewed the AOLPro product, including the insurance coverage behind it, to assess the credit risk impact of including loans closed with an AOLPro in lieu of title insurance, in mortgage-backed securities.
After completing its review, Moody’s determined the use of an AOLPro creates no material credit concerns or issues from a credit risk perspective. Moody’s analysis and determination were limited to Alita’s AOLPro and do not extend to other AOL products.
“Moody's in-depth review of the AOLPro framework and ultimate determination that the credit risk is materially similar to title insurance validates our belief that the AOLPro is a game-changer,” Alita Group President Stacy Mestayer said in a release. “This yet again confirms that the AOLPro can not only provide real savings to a consumer at the closing table, but can also protect them, as well as the lender and downline investors, in a responsible and regulated way.”
Mestayer recently spoke to The Title Report about AOLPro.