3 Title Insurance Firms agree to California refunds, penalties

SACRAMENTO — In a case involving thousands of California home buyers, three title insurance companies have agreed to pay $37.8 million in refunds and penalties to settle accusations of kickbacks that state officials say drove up the price of title insurance.

California Insurance Commissioner John Garamendi, in announcing the settlement last week, said the three companies devised a scheme to route “illegal kickbacks” to banks, home builders and real estate firms in exchange for referrals.

The settlement represents the biggest component to date of an investigation launched by Garamendi last fall. But the commissioner said his office is still investigating whether the industry is so anti-competitive that he should seek rate reductions.

Read More ›