Title insurance scandal

Compensation for referrals

State regulators say they are investigating more than 50 title insurance companies for paying illegal referral fees and other incentives to real estate agents to steer insurance business their way.

Such illegal incentives have become so widespread in Florida as to be considered common business practice in the title and real estate industries. Under HUD regulation United States Code - Title 12 directive 2607, referral fees are prohibited for anyone connected with a real estate closing. The rule applies to federally backed loans, which make up 97 percent of all real estate transactions.

Title Insurance Practices Probed [Tampa Tribune]

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