You may be Overcharged for Title Insurance

Some of the nation’s biggest title insurance companies are being investigated by New York state authorities for paying illegal rebates and referral fees to some if the people who steer business their way.

It works this way: The people giving you your mortgage tell you should have (or require you to have) insurance on the title to the property you are mortgaging. If the title is faulty, you get paid.

These banks and their agents are NOT supposed to enjoy any financial reward from this insurance, because that would be considered a conflict of interest. They can force y0u to buy something from which they benefit.

According to the Wall Street Journal, Eliot Spitzer is checking to see if some companies have arranged to get kickbacks from the mortgage lenders in return for referrals. Companies under investigation include First American, Fidelity National Title Group, LandAmerica Financial Group and Stewart Title Guaranty Corp.

Until these practices are revealed and stopped, the best thing to do is find your own title insurance company, or at least get quotes from more than one!

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