Industry News

Michigan home buyers awarded $27.5 million settlement

Overcharges on title insurance alleged

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More than 60,000 new-home buyers in Michigan will share $27.5 million from the tentative settlement of a lawsuit filed by owners who claimed they were overcharged for title insurance, media reports said Saturday. On Friday, a federal judge in Detroit tentatively approved the settlement, reports said. The settlement would provide $300 to $400 each to people who bought new homes between December 1998 and July 2005 and purchased title insurance from one of four companies, according to reports. "This appears to be the beginning of the end of a rate structure that we believe repeatedly resulted in violations of federal law," Birmingham lawyer Patrick Bruetsch told the Detroit Free Press Friday. Bruetsch and Farmington Hills lawyer Jeffrey Yellen and Birmingham lawyer David Davis filed the class action in 2000 on behalf of four Detroit-area residents, reports said. The title insurance industry came under an intense spotlight in 2005. Colorado's Insurance Division in February investigated n...