Industry News

Title insurers settle with New York attorney general

Fidelity, First American to pay $2 million each

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Fidelity National Financial and First American will each pay a $2 million fine and cut their rates by 15 percent to settle a probe by New York's attorney general, the official said Tuesday. New York Attorney General Eliot L. Spitzer alleged that the two title insurers gave real estate developers free or discounted title insurance in other states in exchange for giving their New York business to Fidelity and First American. The companies have not acknowledged any wrongdoing. Under the agreements, described as "first-of-their-kind" by Spitzer, Fidelity National Title Group Inc. and First American Title Insurance Co. will seek title insurance rate reductions of 15 percent for all properties up to $1 million in New York, according to Spitzer's office. "This agreement provides clarification and better enforcement of state regulations, which First American welcomes," the company said in a statement. First American noted that under the agreement, it acknowledged no wrongdoing. "Neither the ...