Industry News

California supports title insurance industry crackdown

State insurance commissioner says GAO report is on target

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A federal agency's report that calls for tighter oversight of the title insurance industry is "a terrific affirmation of ... the need for greater transparency and the regulations we have proposed to bring healthy competition," according to California's insurance commissioner. A U.S. Government Accountability Office study of title insurance industry practices concluded that regulators must step up enforcement efforts to ensure that pricing is competitive and that title insurers are complying with applicable state and federal laws (see Inman News article). The report focused on the title insurance industry practices and regulation in six states, including California, and noted that California has settled or closed a dozen investigations into title insurance referral practices from 2003-06 and ordered title insurance companies to pay $61.3 million as a result of those investigations during that period. "This report will further support our efforts and help serve as a catalyst for change w...