"The affordable housing crisis demands meaningful bipartisan solutions, not shortsighted regulatory overreach," said Tennessee Attorney General Jonathan Skrmetti, who penned the letter that joined by his counterparts in Alabama, Arkansas, Georgia, Indiana, Kansas, Louisiana, Mississippi, New Hampshire, Oklahoma, South Carolina, South Dakota, Texas, and Virginia.

"FHFA has received the letter and will respond directly," a statement from the agency said.

The controversial pilot was first brought up last year but canceled in August 2023 following widespread opposition.

But the Biden Administration as part of its efforts to reduce housing costs, revived the program as part of its State of the Union speech.

"We respectfully call on the Agency to halt this misguided effort because the proposed program fails to address the core issue of housing affordability, harms homeowners and small businesses, and improperly expands Fannie Mae's authority," the AGs' letter said.

They join others who have spoken out against the pilot, including members of both parties in Congress.

The American Land Title Association has also come out against the pilot, declaring it would turn the government-sponsored enterprises into the de facto title insurers.

But the industry opposition is not universal, with Doma, an underwriter in the process of being acquired by Title Resource Group, expressing support; Doma is working with Fannie Mae on another title pilot.

While the Mortgage Bankers Association also opposes the pilot, the Community Home Lenders of America is in favor.

Fannie Mae made a request for proposal from interested parties for this pilot, with a deadline of July 26.

"The pilot program also opens homeowners up to potential fraud and abuse. Home title fraud is not an academic risk," the Tennessee AG letter said. "While title theft is not common, tens of thousands of people have been victimized by deed scams, and even the most famous private home in America is not immune to attempted fraud," referring to a recent attempt contesting ownership of Elvis Presley's Graceland estate.

When it comes to deed theft, New York Attorney General Letitia James has been active in this area, successfully leading an effort to criminalize this activity in her home state.

"Title insurance is a state-regulated industry, and homeowners will be better served if it stays that way," the Tennessee letter said.

This proposal is not meaningful nor is it a bipartisan solution and should be ended, the letter concluded.

"An attorney general's role is to enforce state consumer protection laws, and we at ALTA share the concerns raised by the 14 state attorneys general about the pilot program's lack of transparency, the shift of title risk from state-regulated title insurance companies to Fannie Mae, and the impact on local economies," said CEO Diane Tomb in a press release. "We applaud their call to terminate the pilot program."