Price Fixing in the Title Insurance Industry - Class Action Lawsuit Investigation
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. Title insurance fraud lawsuits have been filed in New York state and in California, 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 or mortgage brokers to recommend the title insurance company that best suits their needs. What’s more, four companies - Fidelity National Title Group, a unit of Fidelity National Financial Inc.; First American Corp.; LandAmerica Financial Group Inc. and Stewart Title Insurance, a unit of Stewart Information Services Corp. – control 90% of the title insurance business in the United States.
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The title insurance industry is a profitable one. In 2003, according to ALTA, the industry paid out about $662 million in claims, about 4.3% percent of the $15.7 billion taken in as premiums. By comparison, the boiler insurance industry, which like title insurance requires an emphasis on inspections and risk analysis, pays 25% of its premiums in claims. |
If you have purchased title insurance any time from February 2004 to the present, you are urged to contact our law firm now to protect your legal rights.
Audet & Partners represents individuals, governmental entities, small businesses and institutional shareholders in product liability, tort, negligence, consumer, construction defect, investment fraud, securities, insider trading, antitrust, environmental, whistle blower, aviation and employment cases. In recognition of their outstanding abilities and commitment to the legal profession over the years, the firm and its members have served as Court-appointed Plaintiffs’ Counsel in dozens of federal and state cases throughout the United States.
