Title Insurance Kickbacks Elliot Spitzers Next Target
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Title Insurance has been an upsell for many real estate agents the past few years as an additional source of income. The title insurance companies have given refferal fees to agents who steer properties to their companies. Now Elliot Spitzer, corporate dragon slayer, is looking into the industries practices.
New York Attorney General Eliot Spitzer is investigating whether title insurers such as Fidelity National Financial Inc. paid improper rebates, allegations similar to those settled in Arizona and California last year.
Spitzer also issued subpoenas seeking information on agent compensation, Land- America Financial Group Inc. said in a November filing. New York regulators are in the late stages of their probe and may bring civil charges, the Wall Street Journal reported Thursday, citing people familiar with the investigation.
This investigation follows the July settlement in California by three title insurers who agreed to pay $37.8 million to settle California Insurance Commissioner John Garamendi’s allegations that they drove up the cost of their product by paying kickbacks for client referrals.
N.Y. begins inquiry over title insurers.
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