Showing posts from February 10, 2008
Title insurance firms are under the spotlight in the United States.There's allegations that the industry colluded illegally and paid kickbacks to brokers or agents, in a bid to get business.In particular, four title firms in New York are under scrutiny for concealing improper costs underlying their rate request.It comes as the industry faces tougher scrutiny in the wake of the sub prime mortgage meltdown.
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Title insurance fraud became a growing problem during the housing boom, and now that the housing bubble has burst, the business practices of title insurance companies have come under increased scrutiny. Earlier this month, a title insurance fraud lawsuit was filed New York State, alleging that title insurers engaged in price fixing and kickback schemes in an attempt to enrich themselves. Title insurance fraud always results in consumers paying inflated prices, and the New York title insurance fraud lawsuit alleges that such practices have resulted in residents paying some of the highest title insurance premiums in the country. Title insurance must be purchased for any type of real estate transaction, from home purchases to refinances. Title insurance is insurance against loss from defects in title to real property and from the invalidity or unenforceability of mortgage liens. Because most consumers don’t understand what they are buying, they often depend on their real estate agents…