Industry News

Title insurers slapped with regulator questions

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The Colorado Division of Insurance is sending 600 interrogatory letters to 50 title insurance companies as part of its investigation of partnerships among real estate service providers, known as affiliated business arrangements, media reports said. The letters will ask title agencies if they are in affiliated business arrangements as defined by the Real Estate Settlement Procedures Act, or RESPA, and Colorado statutes, among other things, news sources said. Affiliated business arrangements are partnerships between real estate entities such as title insurance companies, mortgage lenders and real estate brokers. They are legal under RESPA, as long as certain guidelines are followed, such as disclosing the relationships to consumers. "We've targeted about 50 companies in Colorado," said Erin Toll, Colorado's deputy insurance commissioner and co-chair of the National Association of Insurance Commissioners' Title Insurance Working Group. In March, Toll launched an investigation of aff...