Industry News

Missouri fines two First American title companies $240K

Title agencies allegedly used inconsistent rates

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Two title insurance companies under the First American Corp. umbrella have agreed to pay $240,000 in fines for allegedly failing to make sure that independent title agencies writing policies on their behalf used the correct rates. First American Title Insurance Co. and Land Title Insurance Co. of St. Louis allowed title agencies to use incorrect risk rates, or rates not filed with the Missouri Department of Insurance, regulators said. First American agreed to pay $150,344 in fines, and Land Title Insurance Co. -- which was purchased in 1980 by First American Financial Corp. but remains an independent underwriter -- paid $90,800 to settle the charges. Land Title Insurance referred a request for comment to First American, where a spokeswoman said the company was preparing a response that was not available by Friday's publication deadline. According to the settlement stipulations signed by First American and Land Title Insurance, both companies paid the fines without admit...