Bad Boys Bad Boys. Whatcha Gonna Do?

Hello, All:

In the wake of the Nation's current mortgage lending problems, the $17 billion title insurance business is also under fire in the state of New York.

An antitrust suit filed last week in federal court in Brooklyn, New York accuses the four firms that dominate title insurance throughout the nation of illegally fixing prices in New York. At least six states, including California Colorado, Florida and New York have targeted illegal kickbacks and payments by title insurers to agents and others.

So, be careful.

Since 2003, title insurers, their agents or affiliates have paid more than $100 million in fines, penalties and settlement money as a result of lawsuits brought by state and federal regulators. This is information from the 2007 report by the Government Accountability Office.

The New York antitrust suit names the bad boys as the four big firms that control 90% of the market: Fidelity National Title Group, First American Corp., LandAmerica Financial Group, and Stewart Title Insurance.

First American declined to comment on the lawsuit, and Fidelity National, Stewart Title, and LandAmerica issued statements that they are in full compliance with all regulation. There's more information on this lawsuit in the February 12, 2008 issue of The Wall Street Journal.

Utah law says we agents can't do this-- take kickbacks or compensation from other vendors in a transaction.
Life's too short to get nicked, and there's better money in a good transaction, eh?

From The Porch...

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Mike B. Class Star®