LAWSUITS NEWS & LEGAL INFORMATION
Mortgage Kickbacks
Washington, DC: (Nov-18-07) The US Department of Housing and Urban Development and Florida insurance and banking regulators brought charges against a First American Corp. title insurance subsidiary, alleging that the company gave kickbacks for new business. The suit claimed that the company's First American Title Insurance Co. unit illegally used Florida-based title insurance agencies created by the company solely to pay mortgage brokers, banks, and homebuilders for referrals. Experts in the field stated that title insurance protects homeowners and lenders against unknown claims or liens on property.
As part of a settlement reached, sources confirmed that the Santa Ana-based company agreed to pay $5 million to allegations with the federal and state regulators. Further, the company has agreed to shut down 84 partnerships as part of the agreement. Records show that the settlement follows allegations made by New York Attorney General Andrew Cuomo, against the company's eAppraiseIT subsidiary, accusing it of caving in to pressure from Washington Mutual Inc. to use a list of proven appraisers who he claims inflated home appraisals. The company has denied the allegations. [CNN NEWS: MORTGAGE KICKBACKS]
Published on Nov-19-07
As part of a settlement reached, sources confirmed that the Santa Ana-based company agreed to pay $5 million to allegations with the federal and state regulators. Further, the company has agreed to shut down 84 partnerships as part of the agreement. Records show that the settlement follows allegations made by New York Attorney General Andrew Cuomo, against the company's eAppraiseIT subsidiary, accusing it of caving in to pressure from Washington Mutual Inc. to use a list of proven appraisers who he claims inflated home appraisals. The company has denied the allegations. [
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