The Missouri Department of Insurance, Financial Institutions and Professional Registration said Thursday that it has ordered two title insurance companies to pay over $240,000 in fines and to fix current title agency rating procedures. The state regulator said that an investigation indicated St. Louis-based Land Title Insurance Company and Calif.-based First American Title Insurance Company allowed independent title agencies writing title insurance on their behalf to use incorrect risk rates or risk rates not filed with the department. Risk rates are used in calculating the premium a consumer will pay for the cost of title insurance. “The new title insurance reforms I signed provide for better disclosure to consumers and more accountability to companies and agencies to ensure they give Missourians consistent and fair prices for title insurance,� Missouri Gov. Matt Blunt said. “The results of these examinations demonstrate the importance of new laws Gov. Matt Blunt signed last year,� DIFP director Douglas Ommen said. “Missouri consumers deserve to be treated fairly and honestly during the home-buying process. Title agencies should not use varying rates or rates not filed with this department, and title companies should do a better job of overseeing the transactions of agencies that work on their behalf.� Gov. Matt Blunt signed title insurance reform legislation that became effective with the new year. It clarifies a duty to fully disclose to consumers separate price information for insurance premium and for the title search and other services, and it requires title insurance companies to actively oversee title agencies writing business on their behalf by conducting annual audits of escrow, underwriting and claims practices. In the fall of 2006, the department began a series of on-site investigations of title insurance agencies in an effort to review the marketplace and see how the title industry was marketing, underwriting and rating insurance coverage in the St. Louis area. For more information, visit the DIFP Web site. Disclosure: As of posting date, the author held no positions in the companies mentioned in this story.
Paul Jackson is the former publisher and CEO at HousingWire.see full bio
Most Popular Articles
Latest Articles
Test
The story for the housing market over the past three years has been, “Home sales are down, home prices are up.” Because inventory was so restricted after the pandemic, prices pushed higher even as demand weakened. That story may finally be inverting as unsold inventory of homes is now great enough that home prices are […]
-
Freddie Mac’s Donna Spencer on their Servicing Excellence initiative
-
Lower mortgage rates attracting more homebuyers
-
Rocket Pro TPO raises conforming loan limit to $802,650 ahead of FHFA’s decision
-
Show up, don’t show off: Laura O’Connor is redefining success in real estate
-
Between the lines: Understanding the nuances of the NAR settlement
Paul Jackson is the former publisher and CEO at HousingWire.see full bio