California targeting real estate kickbacks

Proposed rules could drive some title insurers out of business

California regulators plan to tighten rules governing affiliated businesses and step up enforcement of anti-kickback provisions in existing law — changes they estimate could cost the state’s title insurers and underwritten title companies up to $732 million a year in profits.

The California Department of Insurance says the proposed new regulations, which are the subject of two public hearings this week, will increase competition in the state’s title insurance industry.