Corinthian Title Company Settles With State

San Diego, CA – Corinthian Title Company Agrees to resolve enforcement issue with State Department of Insurance.

According to  SanDiego6.com, Corinthian Title has made an agreement with the State Department of Insurance and Commissioner Steve Poizner to resolve an enforcement issue.

Corinthian Title Co. Inc. was accused of failing to file escrow rates between October 2008 and November 2009, despite the fact that it solicited and provided escrow services during that time, Poizner said.

The company also allegedly failed to comply with its underwriter’s filed rates, resulting in overcharges and undercharges, and gave discounts on lender title insurance policies in residential refinance transactions that didn’t meet qualification criteria for those discounts, resulting in undercharges that could be considered illegal rebates to induce the referral of business, according to the DOI.

The settlement with Corinthian includes a $100,000 monetary penalty, plus a $10,000 reimbursement of legal fees and costs to the Department of Insurance, Poizner said.

It is hard to believe that in 2010 we still see these illegal rebates and cozy affiliated companies, at the detriment of the consumer.  Just another sad scheme like the Property ID kickback with Prudential California and other major brokers.

Only one reason a real estate company, broker, or agent should ever refer a settlement service – based on their belief it’s in the best interest of the Client and that the company will provide excellent and competitive services.

Companies, agents, and Brokers should be ashamed for these illegal activities.

“I refuse to allow title companies to break the law through illegal rebating or through overcharging consumers,” Poizner said. “It is mandatory that companies file their schedule of rates prior to charging those rates and the rates they file with the department are the rates they are required to charge consumers — no more and no less.”

Good job Steve Poizner.  Full press release here.