Scrutiny Tightens for Title Insurers

Wall Street Journal (02/12/08) P. A1; Wilke, John R.
An antitrust lawsuit filed in New York accuses four title insurance firms—Fidelity National Title Group, First American Corp., LandAmerica Financial Group Inc. and Stewart Title Insurance, which control 90 percent of the New York title insurance market—of fixing prices in the state, concealing improper costs within their rate requests, collusion and paying kickbacks to agents or brokers to garner more business. The suit claims the results of these actions by title insurers resulted in millions of dollars in excess closing costs for home buyers in the state. The U.S. Government Accountability Office estimates that title insurers, their agents and affiliates have paid about $100 million in fines, penalties and settlements related to federal and state cases—including in Florida and Colorado—centered on alleged kickbacks and illegal payments made by such firms since 2003. Former New York Land Title Association President Larry Litwack says, "Let's face it: There are no 'rules' governing title agencies in New York. Steering, kickbacks and referrals are open and notorious, often aided and abetted by the underwriters."