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HomeFlorida Mortgage | Title Company faces $5M...

Florida Mortgage | Title Company faces $5Million Fine

Another sign that the State of Florida's Department of Financial Services is looking to clean up the industry was announced in the Palm Beach Post Saturday (November 17, 2007)... link to article

First American Title Company, the nation's largest Title Insurance Service Provider, agreed to pay fines of $5Million for setting up 87 "sham" title insurance agencies in Real Estate and Mortgage offices throughout the state. These "agencies" would then pass fees onto the limited partners, a.k.a. the Realtors and Mortgage Brokers - which the State of Florida views as a kickback.

State and Federal Laws prohibit any Real Estate or Mortgage Professional from accepting any referral fees from Title Insurance Business.

This is just another sign that all Real Estate Professionals need to reconsider all their "strategic business alliances" and their "in-house" people because these relationships are being cracked down on by the State.

For more information, follow this link: Florida Mortgage | Compliance & Ethics - A Major Title Company loses a battle

More Florida Mortgage and Real Estate News You Can Use From
David A. Podgursky, MBA
TheMortgageGoToGuy.com
Your Source for Residential, Commercial, Investment and Relocation Mortgages in Florida

Posted Tuesday Nov 20
(11/20/07 09:36AM) — Melissa Devitt

David, Thank you for posting this.

As the Marketing Director for a Title Company, I always find it very frustrating when prospects insist that they will only work with title companies that give them the an illegal "kickback". I have never been able to compete with a title company that does such unscrupulous things in order to gain a deal.

It is refreshing to see that business will get back to what is most important -- the relationship and service!

(11/20/07 09:45AM) — Thomas Weiss

David,

You know that was bound to happen sooner or later. It's sad that they resorted to doing business this way, but now they will pay.

Tom Weiss

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