Florida's second-largest title insurance company will pay $5-million to settle charges that it ran an elaborate kickback scheme to build its business, state and federal officials said Friday.
Regulators say that First American Title Insurance Co. illegally paid real estate agents, mortgage brokers, banks and home builders for referrals by making them partners in sham title companies. Eighty-four of these companies were created to funnel business to First American and payments to those making the referrals, authorities said.
First American denied breaking any laws, but agreed to shut down the partnership companies. First American will pay $5-million to the three agencies involved in the investigation and settlement, the Florida Department of Financial Services, the Florida Office of Insurance Regulation and the U.S. Department of Housing and Urban Development. Look here for more on this story.